The solar energy market in China has been growing steadily and is expected to grow further. Major government initiatives coupled with large scale demand from the export market has been attracting investments in the sector. The report begins with an introduction to the global solar energy market which includes current and expected growth in installed capacity and market size as well as the segmented share of the major solar markets across the globe. It also includes major initiatives in the international markets as well as the solar PV production chain. An overview of the energy market in China has been provided including estimated figures for increase in energy consumption. The solar energy market in China is given with existing and estimated figures for installed capacity and market size. This section also includes the cost entailed in solar power generation. The drivers explain the factors influencing growth of the industry including geographical advantages, solar subsidies, and strong investment potential and global competitiveness. The key challenges identified encompass the rising raw materials and oversupply condition, high price of electricity generation and low per capita income. The trends in the market have been analyzed and include – international participation, players focusing on the export market, companies expanding businesses vertically and focus on silicon based solar cells. The major government programmes and investments towards the development of the industry have been discussed including the national renewable energy standard, region specific plans and investments, feed-in-tariff, rural electrification programme and research and development initiatives. Competition section profiles the major domestic as well as international players in the market. The section contains a snapshot of the corporations’ financial performance and business highlights, providing an insight into the existing competitive scenario.

1. Solar Energy - China
December 2009

2. Executive Summary
Installed capacity of solar power stood at X MW in 20- -; Forecasted to reach Y MW by 20- -
Market Market size, in 20- -, is estimated at USD ZZ bn
China produces a% of the global supply of solar photovoltaic panels
LE
Drivers: Geographical advantages, solar subsidies, strong investment potential and global
P
Drivers & competitiveness
Challenges Challenges: Rising raw materials and oversupply condition, high price of electricity generation
S M
and low per capita income
A
National Renewable Energy Standard
Region Specific Plans and Investments
Government Feed-in-Tariff
Initiatives Rural Electrification Programme
Research and Development
Other Major Programmes
Market comprises of a large number of domestic players and constantly increasing participation
from foreign players
Major players
Competition
Domestic Players Foreign Players
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6
SOLAR ENERGY – CHINA.PPT 2

3. •Introduction
•Market Overview
•Drivers & Challenges
•Trends
•Government Initiatives
•Competition
•Key Developments
•Appendix
SOLAR ENERGY – CHINA.PPT 3

4. Global solar energy market has been growing dynamically
with Country 1 dominating the market
Overview Installed Capacity and Growth
•Total installed capacity in the solar space was MW
C MW and is expected to reach D MW by 20- - 8,000 Z
LE
•Players are entering into partnerships with 6,000 a% Y
manufacturers, municipalities and funding
agencies to realize larger projects
MP
•China produces e% of the global supply of
4,000
2,000 U V
W
X
solar photovoltaic panels
Market Size and Growth SA 0
2004 2005
Major Solar Markets by 2010
2006 2007 2008 2010e
Country 1
USD bn 9% Country 2
o%
100 M m% n% Country 3
l% f% Country 4
80 b%
k%
Country 5
60 j% Country 6
40 Country 7
L i%
Country 8
20
Country 9
0 h% g%
Country 10
2006 2010e
Rest of the World
Source:
SOLAR ENERGY – CHINA.PPT 4

5. Solar energy market, in China, has been growing strongly
and is expected to develop further
Overview Installed Capacity
•China manufactures 2/3rd of the solar water MW
heaters and r% of all PV cells in the world 2,500
P
•It is forecasted that ~ USD S bn will be invested
LE
2,000
by 20- - on solar sector b%
1,500
•Countries first solar power plant was being
planned in Feb 20-- to generate XX MW in
MP
It will account for ~t% of the total RE investment
1,000
500
a%
Z
A U V W X Y
Beijing
S
0
2004 2005 2006 2007 2008 2010e 2020e
Expected Market Distribution (2010) Market Size and Growth
Market 1 USD bn
20% Market 2 Q
15 P
32% c%
Market 3 O
Market 4 N
10
Market 5 M
20% L
5
16%
12%
0
2004 2005 2006 2007 2008 2009e
Source:
SOLAR ENERGY – CHINA.PPT 5

6. Drivers and Challenges - Summary
Challenges
Drivers Rising raw materials and oversupply
condition
Geographical advantages
High price of electricity generation
Solar subsidies
Low per capita income
Strong investment potential
Global competitiveness
SOLAR ENERGY – CHINA.PPT 6

7. Trends - Summary
Focus on silicon based solar cells International participation
Key
Trends
Companies expanding businesses Players focusing on the export
vertically market
SOLAR ENERGY – CHINA.PPT 7

8. Government Initiatives - Summary
National Renewable Energy Standard
Region Specific Plans and Investments
Feed-in-Tariff
Key Initiatives
`
Rural Electrification Programme
Research and Development
Other Major Programmes
SOLAR ENERGY – CHINA.PPT 8

9. Domestic Players in the Market (1/18)
Company Snapshot: Company X
Corporate Information Financial Performance
Revenue
Headquarters Hong Kong Revenue Profit
LE
USD mn Profit / Loss USD mn
Founded 20-- 120 116.3 5
P 100 85.8
Products Thin film solar panels 0
80
Key People
AM
Person 1 – Executive Chairman & CEO
Person 2 – Executive Director & CFO
S
60
40
20
0
34.4
2005
22.9
2006 2007 2008
-5
-10
-15
Business Highlights
• In 20- -, Company X produced its first a-amorphous silicon (a-Si) thin-film solar panel at it’s a MW solar plant in
Henana
Product 1 is the world's first multi-substrate-multi-chamber deposition tool
It boasts of higher productivity and lower manufacturing cost
• Company’s wholly owned subsidiary, Company Y signed an MOU with US-based Company T to supply a-Si thin film
solar panels for the companies large scale commercial solar farm projects construction
Under the agreement, Company Y could provide up to 1.25 GW of solar panels for Company T’s thin film solar development project
The project commences from 20-- with an estimated supply of N MW to Company T per week
Source:
SOLAR ENERGY – CHINA.PPT 9

10. Thank you for the attention
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SOLAR ENERGY – CHINA.PPT 10