Caixin Weekly | How Yibin Attracts Investment to Build a Billion-Dollar Photovoltaic Industry Cluster Against the Tide (AI Translation)

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[para. 1] At the annual photovoltaic industry conference in December 2024, Cao Renxian, Chairman of the China Photovoltaic Industry Association, emphasized the need for rational planning of photovoltaic capacity to avoid impulsive investments. The conference took place in Yibin, Sichuan Province, marking the city's attempt to make a mark in the photovoltaic field. Leading companies LONGi Green Energy and Yingfa Group announced their collaboration on a new-generation HPBC solar cell project with an annual capacity of 16 gigawatts in Yibin, despite current sector challenges. This initiative reflects the broader trend of local governments leveraging such events to attract investment [para. 1][para. 4].

[para. 2] Yibin, having entered the photovoltaic sector relatively late, has been rapidly developing a comprehensive industrial ecosystem. By 2024, the city has already attracted significant investments in the photovoltaic industry, amassing a production capacity that covers the entire industry chain, from silicon rods to modules. It aims to position the photovoltaic industry as a parallel economic driver alongside power batteries within the next three to five years. Yibin's transition from traditional industries like liquor and coal to green renewable energy marks its commitment to new economic pathways [para. 2][para. 6].

[para. 3] The local government has drawn inspiration from successful models elsewhere, particularly the "Hefei Model," focusing on building a strong industry chain by attracting leading companies through green energy leverage. Yibin's abundant hydropower resources have been a significant draw for attracting investments from companies like CATL, which value green electricity for their operations. This strategic focus has transformed Yibin into a competitive player in sectors such as new energy vehicles, power batteries, and photovoltaics [para. 3][para. 5].

[para. 4] Despite recent downturns in the photovoltaic and lithium battery sectors, Yibin remains committed to the broader "dual carbon" goals. The city predicts a market rebound starting in late 2024, with significant economic potential still seen in photovoltaics. Government officials and industry leaders continue to push for stronger collaborations between localities and businesses to navigate current challenges effectively and prepare for future upswings [para. 4][para. 11].

[para. 5] An essential aspect of Yibin's industrial strategy involves harnessing its geographic and economic advantages, such as unique hydropower capabilities, to offer competitive electricity prices that appeal to high-energy industries like photovoltaic manufacturing. Despite price shifts due to market reforms, Yibin remains competitive compared to eastern cities. The city's initiatives extend to Shaping an inclusive business environment and providing consistent support and incentives for emergent enterprises [para. 5][para. 7].

[para. 6] Yibin's ambition extends to the global market, where its focus remains directed toward Europe, despite challenges such as recognition of its green electricity by the EU. To align with international standards, Yibin is pioneering the concept of green microgrids, ensuring its exports, such as photovoltaic and battery solutions, meet global carbon footprint norms. This strategic orientation aims to open doors in European markets while fulfilling domestic demands for sustainable industrial practices [para. 6][para. 14].

[para. 7] Since 2016, initiatives such as "city rejuvenation through science and education" have played a significant role in fostering a conducive environment for high-tech industries in Yibin. By integrating educational collaborations and tapping into diverse partnerships, the city aims to cultivate a technologically adept workforce equipped for advanced industry demands. This strategic investment in human capital is a vital component of Yibin’s long-term industrial objectives [para. 7][para. 16].