Carbon neutralization attack? A number of photovoltaic enterprises are investing heavily in the expansion of monocrystalline silicon.

On March 15, Shuangliang Energy Saving (600481.SH) announced that it plans to invest 7 billion yuan to build a total 40GW monocrystalline silicon project in Baotou rare Earth High-tech Zone in two phases. Shuangliang Energy Saving said that part of the production capacity has been realized in the first year of the project construction period, and the third year is the year of reaching production, and the average annual operating income is expected to be 10.8 billion yuan after reaching production.

Shuangliang Energy Saving said that the company's foreign investment aims to further expand and improve the company's layout in the photovoltaic industry chain by virtue of rich industry experience, technology accumulation and customer resources. This overseas investment has implemented the company's overall strategic plan for energy conservation, emission reduction and photovoltaic new energy, laying the foundation for the rapid development of the company's photovoltaic new energy business.

At the National two sessions in 2021, the government work report pointed out that we should do a solid job in the work of carbon peak and carbon neutralization, formulate an action plan to reach the peak of carbon emissions by 2030, and optimize the industrial structure and energy structure.

Under the guidance of the major policy, in addition to Shuangliang energy saving, a number of photovoltaic enterprises are also increasing investment.

Among them, computer numerical control (603185.SH) is particularly active. On Feb. 20, SMC said that it is planned that the wholly-owned subsidiary Hongyuan New Materials (Baotou) Co., Ltd. (hereinafter referred to as "Hongyuan New Materials") will invest in the construction of an annual 10GW single crystal silicon crystal pulling and supporting production project in Baotou, with a total investment of about 3.5 billion yuan.

In March, CNC disclosed that it would sign a "Strategic Cooperation Framework Agreement" with Jiangsu Zhongneng Silicon Industry Technology Development Co., Ltd. (hereinafter referred to as "Jiangsu Zhongneng"). The two sides intend to cooperate in R & D projects in the field of 300000 tons of granular silicon production and downstream applications, and the total investment of the project is expected to be 18 billion yuan.

In addition, CNC also disclosed that it had signed a procurement contract for 52700 tons of polysilicon materials with a purchase amount of about 5.534 billion yuan (including tax). It is proposed that from July 2021 to June 2024, the company and its wholly-owned subsidiary Hongyuan New Materials (Baotou) Co., Ltd. will purchase from Xinliao and Xinjiang Daquan New Energy Co., Ltd. (hereinafter referred to as "Xinjiang Daquan").

The shares of Longji, another photovoltaic industry leader, are no less than those of Longji, another photovoltaic industry leader. In January, it was disclosed that the company's holding subsidiary would invest about 8 billion yuan to build an annual 15GW single crystal battery construction project in Xixian New area.

On February 1, 2021, seven subsidiaries of Longji signed a polysilicon purchasing agreement with Jiangsu Zhongneng. It is estimated that the total amount of this contract is about 7.328 billion yuan (excluding tax). After that, 13 subsidiaries of Longji shares (Party A) signed a strategic cooperation agreement with Follett and four wholly-owned subsidiaries (Party B) to purchase an additional 27.86 million square meters of photovoltaic glass from Party B. the total estimated contract value is about 10.4 billion yuan. At the same time, Longji and nine subsidiaries signed a three-year polysilicon procurement contract with the supplier OCIM, with an estimated contract value of about 6.36 billion yuan.

A number of photovoltaic enterprises have increased investment, and the prospect of the photovoltaic industry is improving.

The photovoltaic industry has a bright future, and Huajin Securities expects an average annual compound growth rate of about 23% in the next decade.

As early as September 22, 2020, the Chinese government said at the session of the United Nations General Assembly that China would strive to achieve carbon peak by 2030 and carbon neutralization by 2060.

According to the calculation of the International Energy Agency, the proportion of carbon emissions corresponding to electric power in China will decline rapidly in the next few years, and with the increase of investment in clean energy such as solar energy, electricity emissions will decrease rapidly.

According to the research report of Huajin Securities, according to the latest report of the Photovoltaic Industry Association on December 10, 2020, the average annual installed capacity of photovoltaic in China during the 14th five-year Plan period will be 70GW. From 2020 to 2025, the average annual installed capacity in China will be 70-90GW, while the global average annual installed capacity will be between 222GW-287GW. Huajin Securities forecasts that the new installed demand for photovoltaic in 2030 will be 1017GW, with an average annual compound growth rate of about 23% in the next decade.

In addition to traditional photovoltaic power generation, the domestic BIPV (photovoltaic building integration, namely BuildingIntegratedPV,PV, namely Photovoltaic) market size is also expected to exceed trillion.

According to a 2020 research report by Tianfeng Securities, according to Tianfeng Securities, the potential roof area of BIPV is about 1.23 billion square meters per year. Suppose the photovoltaic panel power is 200w/ square meters, and the potential installed scale is 245GW. Assuming that the price of BIPV is 5.5RMB / w, the corresponding market space is about 1.3 trillion.

Under the guidance of the national policy of carbon neutrality, it is a general trend to vigorously develop clean energy in China, and photovoltaic will be the top priority to achieve carbon neutralization.