UK consulting company Rethink Energy shared its analytical forecasts for polysilicon output based on the production capacity of 19 Chinese enterprises.
China has a leading position in the production and supply of polysilicon around the world. According to Rethink Energy, by the end of 2022 the production of this substance will increase to 1,170,000 tons, and in the first half of the next year – up to 1,595,000 tons.
Currently, China’s production capacity puts on the market about 880,000 tons of polysilicon.
Polysilicon or polycrystalline silicon is the main material for solar panels. Accordingly, solar power generation around the world is quite seriously dependent on Chinese manufacturers and suppliers.
Along with the growing demand for alternative energy sources, the demand for polysilicon also increases, which automatically increases its cost. As a result, the price of photovoltaic panels is also rising. This will continue until the volumes of polycrystalline silicon produced can fully satisfy demand.
According to Andris Vantenaar, head of statistical research, solar energy analyst at Rethink Energy, China is striving to increase its production capacity. Data from China Minmetals Corporation and China Photovoltaic Association shows that the plants are operating at the highest possible level, the loading of polysilicon production lines is close to 100%.
The analyst also notes that to meet China’s growing needs, new industrial sites are being built at an accelerated pace.
If everything develops according to to Rethink Energy forecasts, then by mid-2023, we can expect a decrease in the cost of photovoltaic panels, and hence for solar Energy in general.