Chinese PV Industry Brief: Zhonghuan wants to increase polysilicon capacity by 120,000 MT

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Solar manufacturer Zhonghuan Semiconductor has signed an agreement with the government of Hohhot City, Inner Mongolia, to set up a 120,000 MT polysilicon factory. The company wants to invest CNY20.6 billion (US$3.27 billion) in the new facility. The project is currently awaiting approval from the company's board of directors and relevant regional authorities.

PV wafer producer Shuangliang Eco-Energy announced this week it wants to enter the solar module business by setting up 20 GW of capacity. The company plans to invest CNY 5 billion ($794 million) in the new facility, which will be located at an unspecified location in Inner Mongolia. The first phase of the project should have a capacity of 5 GW and is set to be finalized by the end of 2023.

PV panel manufacturer Longi said this week it received an official notification from the provincial office of the National Development and Reform Committee (NDRC) of Yunnan Province, where some of its manufacturing facilities are located, that it will not be granted preferential electricity rates, as agreed with the provincial government before the construction of the factories. According to the notification, all the electricity Longi consumed in this province since Sept. 1, 2021, must be priced through electricity market-based transactions and directly settled with the local power grid company. Longi said the cancellation of the preferential electricity rates will increase production costs and negatively impact its profit margin.

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