While there will be an estimated demand for solar PV installation capacity of 5GW in the China market in 2012, the competition among China-based solar makers will be intense. The five major state-run power generating companies are expected to have a advantage mainly due to the fact they operate the country's power grids, according to industry sources.
The government in China has been aggressive in creating domestic demand and subsidies to help China-based solar firms, as countries around the world have been cutting incentives.
Industry sources noted that numerous China-based large-size solar firms such as Suntech, Yingli Solar, Canadian Solar, Trina Solar, JA Solar, GCL-Poly, LDK and Renesola are set to benefit from the domestic market, but state-run corporations are likely to have an edge over these firms as the latter control most of the electricity grids in the country.
Industry sources indicated that other state-run corporations have been interested in entering the renewable energy market. Despite being less competitive on technology, state-run firms have strong financial capital.
Article translated by Jackie Chang
