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PV exports to Europe in case of red light as a key development strategy
Time:2013-09-27

Currently the number of photovoltaic products exports to Europe dropped significantly. Now that some customers are reluctant to accept the 0.56 euros / watt lowest (two sides reached agreement price, all products can not sell below this price), so some customers had planned photovoltaic power plant projects canceled midway. EU exports gradually decline, heavy. 

Champoux consulting industry analyst pointed out: China PV market high dependence on foreign markets, while the domestic market is not large-scale PV start. With the substantial decline in sales in Europe PV exports, domestic exports for the photovoltaic tension is gradually increased. 

Many large PV Group are actively striving exports to the EU quota. Because some of them do components, silicon exports, while others in the construction of Europe as a power plant or power plant investors, major PV Group any one of the sub-companies without export quotas, it would have a ripple effect, resulting in can not really operate its business. In addition, and because some epc company in Europe after take live, there are many components of its partners in China, but this part of the partnership did not get the quota, so these companies will be more epc lock their brothers and enterprises, thereby reducing some risks. So these large PV Group to be able to report the branches and subsidiaries are reported and then fight to get on exports to the EU quota. But even companies got the part of the quota, may also be subject to quota control than before while exports amount to a lot less. 

Now part of the PV companies are also actively seek countermeasures. As the Chinese PV exports to Europe when the red light, the main reason is asking too much for the European PV too, so some of them will consider local assembly process in Europe, which might reduce the part of the freight, but also can avoid the minimum 0.56 euros / watt limit. However, earnings will decline accordingly. And there may be partially or PV companies will take pricing strategy, namely the declaration or 0.56 euros, the actual transaction price, even lower than the minimum price, or simply close the acquisition of a European or European low-cost assembly plant, this can have a greatercost competitiveness. 

Champoux consulting in the "2013-2017 China PV market analysis and investment value study report" mentioned: China PV industry overcapacity today, European markets declined frequent orders to China's PV industry has sounded the alarm. In the case of exports shrinking market upside is limited, the PV industry should actively seek strategies to meet the challenge. On the one hand is to find a way to increase exports, on the other hand is to develop the domestic market as soon as possible. Small business and the market it is recommended to do the docking, after its completion digest inventory, you can exit the market. And for the industry's large enterprises, actively preparing recommendations to the domestic market as soon as possible.


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