The pace of production expansion of photovoltaic leaders has been non-stop.
On March 13, Longi Green Energy Technology Co.Ltd(601012) announced that the company and Inner Mongolia Eerduosi Resources Co.Ltd(600295) Municipal People’s government reached cooperation intention on the construction of 20GW annual single crystal silicon rod and chip project, 30GW high efficiency single crystal cell project and 5GW high efficiency photovoltaic module project. The announcement shows that the investment project is invested by the project subsidiary of Longi Green Energy Technology Co.Ltd(601012) with an investment of about 19.5 billion yuan.
recently, photovoltaic and other new energy stocks have performed well against the market. Some market analysts believe that since the conflict between Russia and Ukraine, the EU has recognized the importance of energy independence. Exaggerated oil and gas prices and external dependence have prompted Europe to be more determined to get rid of dependence through the development of clean energy. The development of clean energy in Europe may further accelerate. China’s photovoltaic manufacturing industry has leading global competitiveness and will benefit from this process
Longi Green Energy Technology Co.Ltd(601012) plans to continue to expand production by 19.5 billion yuan
Longi Green Energy Technology Co.Ltd(601012) announced that the company signed the investment cooperation agreement with the people’s Government of Inner Mongolia Eerduosi Resources Co.Ltd(600295) city and the people’s Government of Yijinholo banner, and reached cooperation intention on the company’s investment and construction of 20GW monocrystalline silicon rod and chip project, 30GW high-efficiency monocrystalline cell project and 5GW high-efficiency photovoltaic module project in mengsu Economic Development Zone of Yijinholo banner, Inner Mongolia Eerduosi Resources Co.Ltd(600295) City, Inner Mongolia Autonomous Region.
The announcement shows that the investment project is invested by the project subsidiary of Longi Green Energy Technology Co.Ltd(601012) with an investment of about 19.5 billion yuan. Specifically, the project includes an annual output of 20GW monocrystalline silicon rod and chip project with an estimated investment of 7.6 billion yuan, an annual output of 30GW high-efficiency monocrystalline cell project with an estimated investment of 10.3 billion yuan, and an annual output of 5GW high-efficiency photovoltaic module project with an estimated investment of 1.6 billion yuan.
Longi Green Energy Technology Co.Ltd(601012) said that the project investment agreement signed this time is in line with the company’s future capacity planning, which is conducive to the company to give full play to its leading advantages in technology and products, seize the development opportunities of photovoltaic market, further improve the company’s capacity scale and continuously improve its market competitiveness. The project is not expected to have an impact on the company’s current operating income. The company will convene a board of directors to analyze and calculate the feasibility of the project according to the project implementation plan and disclose it in time. The signing and performance of the above investment agreement will not affect the business independence of the company.
The downstream market demand has been optimistic for some time. Not long ago, Longi Green Energy Technology Co.Ltd(601012) in the investigation of Guohai Franklin, HSBC Jinxin, Shanghai Investment Morgan and other institutions, said that carbon neutralization has become the general direction of global energy development. When the long-term energy development policy is very clear, with the continuous progress of photovoltaic technology and the continuous release of new production capacity of upstream raw materials, the industry supply and demand pattern will be further improved and the cost of photovoltaic power generation will continue to decline. Therefore, it is expected that the global photovoltaic market demand will exceed 200GW in 2022 and maintain a high economic development trend.
Combined with the photovoltaic installed capacity forecast data of China Photovoltaic Industry Association, ihsmarkit and other international authorities, as well as the company’s analysis of the supply and demand of the industrial chain, the neutral forecast is that the global photovoltaic installed capacity is expected to reach 220gw in 2022, with a year-on-year growth rate of more than 35%.
European PV market or acceleration
Recently, photovoltaic and other new energy stocks have performed well against the market. Since late February, Longi Green Energy Technology Co.Ltd(601012) share price has risen from about 63 yuan to the latest 80.51 yuan per share, up 27.55%, with a market value of more than 430 billion yuan.
Coincidentally, another photovoltaic leader Sungrow Power Supply Co.Ltd(300274) also performed well, with a cumulative increase of more than 33.34% since February 14.
In the case of the overall sluggish market, many analysts put the logic of the sharp rise of photovoltaic against the market in the European market.
On March 8, the European Commission proposed the REpower EU scheme, the main purpose of which is to ensure the energy security of the EU. The proposal of the scheme includes two parts: one is to diversify the import of natural gas and increase the production and import of methane, renewable gas and hydrogen energy; Second, accelerate the substitution of clean energy for traditional energy, install more photovoltaic roofs and energy storage, accelerate renewable energy licensing, increase the installed capacity of land wind and sea wind, reduce the time of renewable projects and power grid infrastructure construction, launch large Cecep Solar Energy Co.Ltd(000591) projects, and accelerate the electrification process.
China Merchants Securities Co.Ltd(600999) analyst you Jiaxun pointed out that in July 2021, the European Commission announced the fit for 55 climate package, and the REpower EU scheme was proposed after the Russian Ukrainian crisis, which is a directional and long-term adjustment and choice for European geopolitics and European energy crisis.
“the installed capacity of photovoltaic in Europe will exceed expectations. The EU has recognized the importance of energy independence, exaggerated oil and gas prices and external dependence, which has prompted Europe to be more determined to get rid of dependence through the development of clean energy.” You Jiaxun said
You Jiaxun pointed out that according to the European PV market outlook for 20212025 released by solar power Europe at the end of 2021, the cumulative PV installed capacity in Europe at the end of 2021 is 164.9gw. Under normal circumstances, the cumulative installed capacity is expected to reach 672gw in 2030. According to the recent changes in Europe and the attitude of countries towards the energy crisis, Solarpower Europe is optimistic that the cumulative installed capacity of photovoltaic in the EU is expected to reach 1000gw in 2030.
China Securities Co.Ltd(601066) analyst Zhu Yue also pointed out that in the long run, most countries in photovoltaic Europe will phase out coal-fired power before 2030, and Europe’s own natural gas resources are relatively scarce. The power gap caused by the elimination of coal-fired power is expected to be mainly supplemented by Fengguang new energy.
Zhu Yue believes that under the background of high electricity price, the installed demand for new energy in Europe is expected to accelerate, and the acceptance of overseas power plant customers to the price of high priced components is expected to increase significantly; In addition, in the process of new energy substitution, it is also necessary to ensure the flexible regulation ability of the energy system, and the demand for energy storage is bound to increase; Under the background of high electricity price, the demand for household photovoltaic has increased. Unlike China, European household photovoltaic is mainly for self use, and attention is paid to the European household light storage marketcenter>
