Recently, the Ministry of Industry and Information Technology, the State Administration of Market Regulation and the National Energy Administration jointly issued the Notice on Promoting the Collaborative Development of the Supply Chain of the Photovoltaic Industry Chain (hereinafter referred to as the Notice), proposing to deploy and promote the collaborative development of the supply chain of the photovoltaic industry chain, encourage the innovation and progress of the photovoltaic industry, standardize the industry order, and scientifically plan and manage the development of the photovoltaic industry in the region, Actively, steadily and orderly promote the construction of the national photovoltaic market. The release of the Notice will play an important role in optimizing the supply chain of the photovoltaic industry chain and promoting the healthy development of China's photovoltaic industry. On the one hand, it responds to the call of the photovoltaic industry to strengthen supervision and guidance, and on the other hand, it plays a positive role in promoting the coordinated development of the supply chain of the photovoltaic industry chain.

Full-chain cooperation to stabilize supply and demand

The PV supply chain can be divided into three links: upstream, middle and downstream, of which the upstream is silicon material and silicon wafer; The midstream is the cell and module link; Downstream are application system links such as photovoltaic power stations. Since 2021, "price rise" has become the focus of the supply chain of the photovoltaic industry, and the most prominent link of this contradiction is in the upstream resource side. The price of polysilicon as the main raw material has risen continuously. On the one hand, the current price rise of silicon materials is due to the mismatch of all links in the supply chain, and the downstream silicon wafer, battery and module capacity is far higher than that of silicon materials, leading to the phenomenon of material grabbing. On the other hand, there is a mismatch between supply and demand. In previous years, due to the downturn in the polysilicon market, the expansion of silicon material production was limited, and most enterprises were expanding the production of silicon wafers, battery modules and other downstream products. The capacity construction period of the silicon material project needs 1 to 2 years, and the production flexibility is small. This led to the growth rate of demand in the middle and lower reaches far exceeding that of supply in the upper reaches, resulting in tight supply and demand of polysilicon in the whole market. Recently, with the soaring price of silicon materials, enterprises have expanded production. In this case, the silicon material capacity has become overcapacity, which may cause a new round of imbalance between supply and demand.

In response to the above situation, the Notice proposes to strengthen the system docking and deepen the whole-chain cooperation. We will guide the upstream and downstream enterprises of the industrial chain to conduct in-depth docking and exchange. We will encourage enterprises of silicon materials and silicon wafers, enterprises of silicon wafers and batteries, modules and inverters, photovoltaic glass, and other enterprises of module manufacturing and power generation investment, and power station construction to cooperate in depth, support enterprises to establish long-term cooperation mechanisms through strategic alliances, signing long-term orders, technical cooperation, and mutual equity participation, and guide the upstream and downstream to clarify the volume and price, ensure supply, and stabilize expectations.

The issuance of the Notice will promote the development of the photovoltaic industry and guide the sustainable and healthy development of the industry. It will help alleviate the periodic mismatch between supply and demand in the industry and the price fluctuation in some supply chains, promote the landing of terminal demand, and promote the development of the "carbon neutral" strategy.