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China Briefings

Reports on China issued by Samsung Economic Research Institute

Current Status and Prospect for the Solar Power Industry

Current Status and Prospect for the Solar Power Industry

Samsung Economic Research Institute Beijing Office

Nov. 29, 2011

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China’s main energy source has been thermal power and the share of new energy still accounts for too small amount. Seeking a shift in the energy structure to reduce its dependency on coal and oil, China has announced an energy plan to develop new energy industries including the solar energy industry.

Although the photovoltaic power generation is widely used in solar energy, it causes serious environmental problems in developing photovoltaic cells. In comparison, solar thermal energy is much more effective in saving energy, protecting the environment, connecting transmission networks and cooperating with thermal power plants.

The Chinese government has designated solar energy as a key business in the new energy industry and has raised investment in the field. Local companies, including the top five electricity companies, developed sophisticated technologies and built production capabilities, achieving growth both in upstream and downstream sectors.

Indeed, the future of the solar thermal energy is rosy, with its share in energy supply forecast to make continued growth. Also, China is in good conditions for developing the industry. However, as the industry requires large initial investment and infrastructure establishment, the government’s support is essential for development of the sector.

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