Power shortages in China and rising environmental consciousness are spurring the development of solar power technology.
San Francisco, CA (PRWEB) April 10, 2013
The young Solar Power Generation industry in China has been developing rapidly. IBISWorld estimates that industry revenue has been rising at an annualized rate of 195.8% over the five years through 2013 to total $1.6 billion.
Rising household demand for electricity in China has led to several power supply shortages over the past few years, which has stimulated demand for solar power generation, says IBISWorld. In addition, a reliance on imported oil and gas resources for power and increasing environmental consciousness have led to a strong government focus on the development of renewable energies like solar power. In the twelfth five-year planning period (2011 to 2015), the State Energy Administration aims to take the installed capacity of solar power generation from 860 megawatts to 21 gigawatts.
With technological advances and the expansion of scale within the industry, solar power is becoming an essential renewable energy following hydroelectric and wind power. However, a challenge for the Solar Power Generation industry is its less competitive pricing, says IBISWorld. Costs for generating electricity from solar power remain relatively high compared to for other renewable energy modes like thermal and hydroelectric.
The top four enterprises in the Solar Power industry in China – China Power Investment Corporation, China Guodian, China Datang, and China Huadian – are state-owned and account for an estimated 40.9% of industry revenue in 2013. The initial investment for establishing a solar generation station is high, which is one of the reasons why the industry is so heavily supported by the government. R&D into developing more efficient equipment and materials, such as solar cells, is also required. As such, only large and well-funded enterprises, such as state-owned enterprises, are able to take on such expenses, says IBISWorld.
For more information, visit IBISWorld’s Solar Power Generation in China industry report page.
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IBISWorld Industry Report Key Topics
The Solar Power Generation industry in China generates power by solar energy. It includes photovoltaic (PV) power generation and solar thermal power generation. Usually, solar power generation refers to PV, which utilizes solar cells to directly convert solar energy into electric energy.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.