Why Yibin Is Thriving in the Solar Downturn (AI Translation)
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文｜财新周刊 罗国平
By Luo Guoping, Caixin Weekly
在2024年12月初的光伏业年度大会上，中国光伏行业协会理事长曹仁贤极力呼吁理性规划光伏产能：“不要想着自己能活，别人就一定会死。要多推演，有可能投资冲动就被抑制住了。”
At the annual photovoltaic industry conference in early December 2024, Cao Renxian, Chairman of the China Photovoltaic Industry Association, made a strong appeal for the rational planning of photovoltaic production capacity: "Don't assume that just because you can survive, others will necessarily fail. Consider running more simulations, as the investment impulses might then be curbed."
这是首次在地处西部内陆的四川省地级城市宜宾召开光伏行业年度大会。会上，光伏头部企业隆基绿能（601012.SH）与英发集团宣布，将在宜宾共建年产16吉瓦（GW）新一代电池HPBC（复合钝化背接触电池技术）项目，并举行了简短的签约仪式。这个在光伏寒冬中逆势而上的项目，被相关方尽量低调处理。
For the first time, the annual conference of the photovoltaic industry was held in Yibin, a prefecture-level city located in the inland province of Sichuan. During the conference, leading photovoltaic company Longi Green Energy Technology Co., Ltd. (601012.SH) and Yingfa Group announced a joint venture in Yibin to establish a new-generation HPBC (Hybrid Passivated Back Contact) solar cell project with an annual capacity of 16 gigawatts (GW). A brief signing ceremony was held for this venture. Despite occurring amid a downturn in the photovoltaic sector, the parties involved chose a low-profile approach for this project.
光伏行业正处于产能过剩的下行周期，而地方政府却别有诉求：宜宾市政府出资主办了这场光伏年度盛会，初衷是借此向上千名前来参会的行业参与者做营商推介、招商引资。
The photovoltaic industry is currently in a downward cycle of overcapacity. However, local governments have other objectives: The government of Yibin City funded and hosted this annual photovoltaic event with the initial intention of promoting business opportunities and attracting investment from the thousands of industry participants attending the conference.
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- At a photovoltaic industry conference in Yibin, Cao Renxian emphasized pragmatic planning to curb overproduction, urging simulations to manage investment impulses.
- Yibin hosts a significant solar cell project amidst local government efforts to attract investment, establishing itself as an emerging photovoltaic industrial hub.
- Despite experiencing a downturn, Yibin leverages green electricity and ambitious projects to enhance its position in the photovoltaic and renewable energy sectors.
In December 2024, at an annual conference in Yibin, Sichuan, a call for rational photovoltaic planning was highlighted by Cao Renxian, chair of the China Photovoltaic Industry Association. This event marked Yibin's entry into hosting such gatherings for the first time, showcasing a new joint venture in HPBC solar cells between Longi Green Energy and Yingfa Group, amid an industry downturn [para. 1][para. 3].
Despite the oversupply in photovoltaics, Yibin aims for economic growth through an industrial park focused on this sector. Since 2022, Yingfa Group has initiated PV ventures in the city, building a recognized industrial cluster that spans across silicon and solar cell production, alongside complementary materials [para. 3][para. 4].
Yibin City's efforts in investment and industrial development attracted major projects, achieving significant numbers in production and export, with a projection of high value by 2025. Known for its baijiu, hydropower, and now, photovoltaics, Yibin is diversifying from traditional industries to new energy and vehicles [para. 5][para. 6][para. 8].
The city's development has been inspired by other successful models, while leveraging its hydropower resources to attract companies like CATL. This approach aligns with China's broader focus on green, low-carbon industry expansion, significantly reshaping the photovoltaic landscape [para. 9][para. 11].
Yibin's industrial pivot attracts investment by strengthening infrastructure, services, and creating favorable conditions for enterprises. Despite recent industry downturns, local government intends to support economic growth by continuing to attract investment and enhancing photovoltaic technology [para. 15][para. 16][para. 17].
Regional development heads like Peng Lin emphasize cooperation between governments and businesses amidst market challenges, while academics discuss the competitive and policy-driven environment that aids industry growth [para. 18][para. 19].
Yibin has invested in infrastructure to support its tech-oriented industrial zones, splitting its high-tech zone into different sections to foster various sectors. This development model has spurred significant gains in industrial value and growth [para. 23][para. 24][para. 25].
Despite successes, Yibin faces concerns with overcapacity and investment challenges but remains committed to technological innovation in photovoltaics, aiming to harness emerging tech for sustained industry strength [para. 27][para. 28].
The local government's dedication and effective project management have led to rapid industrial advancements, such as quick project turnarounds and substantial investments—backed by state funding that aims to foster growth until enterprises can sustain themselves [para. 32][para. 33][para. 34].
Addressing logistics and cost barriers, plans for a green power microgrid aim to establish assurance for EU compliance, as the city aims to continue its trajectory within an increasingly competitive and eco-conscious global market [para. 35][para. 36][para. 37].
Ultimately, Yibin's strategy is to establish long-term competitive advantages by embodying smart governance and fostering deep industrial integration, striving to remain a significant player in China's evolving photovoltaic industry landscape amidst a backdrop of economic resilience and innovation [para. 39][para. 44][para. 45].
- LONGi Green Energy Technology
隆基绿能 - LONGi Green Energy Technology announced a joint project with Yingfa Group to build a 16 GW HPBC cell production facility in Yibin during the 2024 photovoltaic industry annual conference. Despite the industry's downturn, the project signifies strategic collaboration in advancing photovoltaic cell technologies. The project aligns with Yibin's initiatives to create a national-level photovoltaic industry cluster and diversify its local economy away from traditional industries like liquor and coal.
- LEAD Group
英发集团 - LEAD Group, which settled in Yibin's high-tech zone in March 2022, was the first photovoltaic company to set up in the area, launching a state-level photovoltaic industry cluster. By 2024, LEAD Group had established significant capacities in silicon ingots and wafers, with plans for additional silicon material production. The company's photovoltaic presence includes 58GW of ingots and 50GW of wafers, helping position Yibin as a robust player in the photovoltaic industry.
- GS-Solar
高景太阳能 - The article does not provide specific information about GS-Solar. However, it does focus on the solar industry's developments in Yibin, including investments by major companies like LONGi Green Energy and Yingfa Group, as well as the establishment of a national-level photovoltaic industrial cluster in the area.
- Sichuan Dongmag
四川东磁 - Sichuan Dongmag is a battery cell enterprise located in Yibin's High-Tech Zone, identified as one of the four major companies, or "F4," in the area. It is part of Yibin's efforts to build a comprehensive industrial chain for photovoltaic sectors. The company is supported by local government initiatives, aimed at developing a leading battery cell industry cluster in Yibin as a key component of its growth strategy.
- Helios Tongcheng
和光同程 - Helios Tongcheng is a company founded by Xie Yi, former chairman of Tongwei Co. It is based in Yibin and focuses on solar energy production. The company has investments of 150 billion yuan and is divided into two phases to build a 40GW solar cell production capacity. The first phase, 20GW, has already been completed. Helios Tongcheng is heavily supported by local government investments.
- CHINT New Energy
正泰新能源 - CHINT New Energy signed a contract in August 2023 with the Yibin High-tech Zone for a project involving 20GW battery and 5GW module capacity, to be constructed in two phases with a total investment of 12 billion yuan.
- CATL
宁德时代 - CATL, the world's largest battery manufacturer, settled in Yibin's Sanjiang New Area in 2019. Its local subsidiary, Sichuan Times, has contributed significantly to Yibin's economy, with the battery sector reaching a production value of over 1,000 billion yuan by 2023. CATL is engaging with local green electricity initiatives to expand its market, highlighting Yibin's strategic emphasis on renewable energy to foster industry growth.
- Chery Cowin Auto
奇瑞凯翼汽车 - Chery Cowin Auto, a subsidiary of Chery Automobile, has established itself in Yibin's Sanjiang New Area. The area previously attracted global battery giant CATL. This move is part of Yibin's strategy to form a comprehensive industrial ecosystem, complementing the local battery industry and gaining the city the title of "Capital of Power Batteries."
- Lihao Qingneng
丽豪清能 - Lihao Qingneng, established in 2021, produces silicon materials for N-type solar cells. The company is investing in a 20-ton silicon plant in Yibin, Sichuan, and holds 15,000 tons of capacity in Xining, making it the global sixth-largest in silicon material capacity. It's led by Duan Yong, a former key executive at Tongwei Co.
- XGIMI Technology
极米科技 - XGIMI Technology, a leader in global home projector shipments, operates a factory in Yibin's Sanjiang New District, part of its smart terminal industry. The company benefits from Yibin’s efficient government services, reporting effective and timely resolve of issues, with dedicated personnel handling communications and support, fitting well with Yibin's focus on serving businesses effectively.
- Hengdian DMEGC
横店东磁 - Hengdian DMEGC (002056.SZ) is mentioned as a company planning to relocate its capacity to Europe due to the majority of its export products being sold to Europe. This move aligns with the increasing trend of Chinese photovoltaic companies "going overseas" and establishing production facilities abroad.
- Huawei
华为 - Huawei is mentioned as being in negotiations to use the green microgrid power provided by Yibin's efforts to create a carbon traceable power supply. The microgrid aims to offer sustainable energy solutions but currently faces challenges, such as high initial costs. Huawei is one of several companies, including CATL and Tongwei, that are involved in ongoing discussions regarding adopting this green power infrastructure.
- NetEase
网易 - NetEase is mentioned as one of the companies that has been introduced into the digital economy field in Yibin, specifically in the Yibin High-Speed Rail South Zone area which focuses on digital economy and e-commerce initiatives.
- 2020：
- Yibin made its debut on the list of China's top 100 cities by GDP.
- August 2021：
- Fang Cunhao arrived in Yibin and later became Secretary of the Municipal Party Committee in March 2022.
- March 2022：
- Yingfa Group established in Yibin High-tech Zone.
- Around 2022：
- Previous generation of P-type solar cells peaked, transition to N-type cells.
- March 31, 2023：
- Yibin High-tech Zone started independent operations.
- 2023：
- Yibin's GDP ranked 86th with 380.664 billion yuan, fiscal revenue reached 31.39 billion yuan.
- 2023：
- Wang Bohua discusses the large-scale expansion of photovoltaic production, starting in 2020.
- 2023：
- Yibin's power battery output value reached 101.3 billion yuan.
- 2024：
- Yibin's photovoltaic sector projected to achieve nearly 30 billion yuan.
- Early December 2024：
- Annual photovoltaic industry conference held in Yibin.
- December 7, 2024：
- Song Qingwu discussed Yibin's industrial strategy during a company inspection.
- By 2025：
- Yibin aims for a ten-project increase and output increase to 40 billion yuan in photovoltaics.
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