On November 15, China and the United States issued the "Sunshine Land Statement" to strengthen cooperation in addressing the climate crisis. The statement focuses on the commitment to the effective implementation of the Paris Agreement and its related resolutions, particularly regarding the 2020s as a crucial decade. The two countries strongly support the G20 leaders' declaration, aiming to triple global installed renewable energy capacity by 2030, and plan to accelerate the deployment of renewable energy in the two countries in the next decade starting from 2020 levels. The move is aimed at promoting renewable energy to replace coal, oil and gas generation, and is expected to achieve meaningful absolute reductions in power sector emissions after emissions peak. According to the setting of the three-fold target, it is expected that the average annual newly installed capacity will reach about 560GW between 2021 and 2030. However, the current average annual new installed capacity from 2021 to 2022 is 287GW, so between 2023 and 2030, the average annual new installed capacity is expected to be as high as approximately 630GW. Among them, photovoltaics will become the absolute mainstream in renewable energy installations due to its green, safe, efficient and wide range of application scenarios.
Domestically, Jin Zhuanglong, Party Secretary and Minister of the Ministry of Industry and Information Technology, chaired a symposium with manufacturing companies on November 13 to learn more about the development of the photovoltaic industry. The symposium pointed out that it is necessary to focus on the high-quality development of the photovoltaic industry, strengthen top-level design and policy supply, and clearly optimize the direction of supply. The National Energy Administration has also issued a report in recent days stating that as of the end of September this year, the cumulative installed capacity of household distributed photovoltaics nationwide has exceeded 105 million kilowatts, contributing to the total installed capacity of photovoltaic power generation in my country to exceed 520 million kilowatts. 105 million kilowatts is equivalent to the total installed capacity of four Three Gorges power stations. Relevant agencies predict that the area of photovoltaic roofs that can be installed in rural areas in my country is about 27.3 billion square meters, covering more than 80 million households. The development potential of photovoltaics is huge. The relevant person in charge of the New and Renewable Energy Department of the National Energy Administration introduced that the next step will be to promote the implementation of the "Thousands of Villages and Villages Harnessing the Wind Action" and the "Thousands of Households Lighting Action", and orderly promote the pilot development of distributed photovoltaics on rooftops across the county. work and continue to promote the development of distributed new energy.
At the 2023 Sixth China International Photovoltaic Industry Conference held from November 13 to 16, Liu Hanyuan, deputy to the National People's Congress, vice chairman of the All-China Federation of Industry and Commerce, and chairman of the board of directors of Tongwei Group, pointed out in his speech that China's photovoltaic industry will become a driving force The main force in the energy transition. In this process, not only will it not increase the burden on the country, but it can also effectively promote investment, exports, consumption and employment, help double economic cycles at home and abroad, promote moderate and rapid economic development in our country, and completely solve the problem of haze, resource and environmental unsustainability. sexual issues, thereby achieving a fundamental change in the development model. China's photovoltaic industry has the potential to promote China's energy transformation, and also has the potential to promote the energy transformation of developed countries such as Europe and the United States, and for countries along the "Belt and Road" to directly enter the period of sustainable development, avoiding the old path of pollution first and governance later. If there are adverse international actions against China's photovoltaic industry, it will cause damage to all parties. At present, everyone should work together to promote the development of the photovoltaic industry.
This series of measures clarifies the future development direction of the photovoltaic industry: the photovoltaic market will become the focus of domestic and foreign development in the next few years, and will become an important link between China and overseas exchanges. It will also become a major force in responding to the climate crisis. China’s position is very clear: photovoltaics will lead the energy transformation, become an important representative of China on the international stage, and bring positive changes to China and the world. With clear numerical targets as guidance, we believe this expectation will be achieved.
The gradual recovery of the economic environment has provided a solid foundation for the development of the photovoltaic industry: the CPI data in the United States exceeded expectations, and the slow interest rate hikes and other macroeconomic control policies are beneficial to the growth sector. Especially for the photovoltaic industry with clear growth space and increasing demand. During the adjustment process of the photovoltaic industry in the past year and a half, TTM valuation has reached the lowest point in seven years and is forming a bottom.
In the process of forming this bottom, fierce competition is inevitable, and periodic overcapacity is also a normal phenomenon in a growing market. Investment and the market have been constantly seeking balance in dynamic development, and the industry will show a spiral upward. In this process, it can be foreseen that relatively backward production capacity will be gradually eliminated, market share will further concentrate towards leading enterprises with comprehensive competitive advantages in technology, cost, capital, management, etc., the competitive landscape will be reshaped, and the investment value of advantageous enterprises will increase. further highlighted.
Therefore, there is no doubt about the certainty of industry growth at this stage, and for photovoltaic companies, what deserves more attention is the ability to ride through the cycle. I believe that after the big waves wash out, these outstanding photovoltaic companies will lead the photovoltaic industry to achieve the goal of carbon neutrality in my country and even the world and the bright prospects for green and sustainable development.