Loss of European PV quota plan or this week determined

August 6th was the implementation date of the “price promise” for photovoltaic exports agreed by China and the European Union. 94 photovoltaic companies in the country will later export products to Europe at a price of “0.56 euros per watt,” but this price will still be adjusted in due course.

In addition to the price commitments, 94 companies will need to sell their products to Europe after receiving export quotas. At present, how to allocate these quotas in China is still under discussion. The currently proposed allocation method can be seen as the “631” scheme, which means that 60% of the shares will be determined based on historical export data, 30% will be allocated to 36 defense enterprises, and 10% will be given to smaller enterprises.

A photovoltaic company stated that this plan has not yet been passed. There are still many ideas and controversies among the 94 domestic PV companies that have obtained quotas. However, it is estimated that the details of the allocation of PV quotas will be announced this week, and how many quotas each company can get will be finalized.

The reporter learned from some PV companies that the quota for China will be 7G watts next year, while the quota for August to December this year is 1.8G watts.

The “631” program under discussion states that the 60% quota of PV exports to the EU will be allocated according to the amount of photovoltaic products exported by the company to Europe and the share of China’s exported photovoltaic cell modules to Europe. Among them, 30% are calculated according to the EU's export share of the anti-dumping investigation period (July 1, 2011 to June 30, 2012), and 30% according to the export share from July 1, 2012 to March 31, 2013.

A person in charge of a local photovoltaic company in Nanjing revealed to reporters that the above distribution method was unfavorable to the company. “This is more beneficial to larger companies. Large companies will produce a lot of products and export many photovoltaic products to Europe, but they will still There are quite a few stocks on the other side of the port, and we haven't actually sold the goods. And we're totally in production. This is done from the perspective of controlling costs." If he came to make decisions, he would prefer to The allocation of quotas tends to be judged by indicators such as profitability, profitability, etc., such as net profit margin, advance receipts/operating income, operating cash flow and return on net assets, etc. “We do not advocate referencing last year or previous years to Europe. The amount of exports to determine the number of future exports to the EU. China's export products are indeed lower in price, resulting in a large number of exports, resulting in Chinese companies facing the current dilemma.If you still use the previous export share to allocate future exports, It may be unfair."

However, a large PV company in Shanghai believes that if you do not use the previous year’s export volume as a reference value, some companies that did not have any exports and no orders in the past may give them quotas that may not be exported. "Moreover, in the case of similar prices in China and Europe, European customers in the future will be more inclined to have products with brand, technology and reputation."

For the remaining 40% share of the quota, the Electrical and Mechanical Commerce Association externally stated that 30% would “as a encouragement and focus on supporting the share and allocate it to the defense enterprises participating in the industry”; the other 10% would “prioritize the use of small-scale export enterprises. The companies that make up less than 2MW (1MW = 1000MW) of the annual share of the terms make up 2MW.

Zhong Sheng Optoelectronics CEO Yan Haifeng said that 30% of the estimated ratio will be distributed to 36 defense companies. “This time, 94 domestic companies got the export share, and 36 of them took part in the defense, and one of the criteria for quantity distribution is who The respondent, who benefits. However, it is not known whether 30% of the shares are evenly distributed.” He said that from August to December this year, the company may receive 200 MW of distribution, which is probably the same period last year. 70%.

The person in charge of the aforementioned company in Nanjing also suggested that there is a quota adjustment mechanism in the distribution process. “If the quotas of some companies are not used up, they should take the initiative to hand over the relevant departments and then coordinate and distribute them to other companies. If the company has quotas but no orders, but it resells the quotas, the quotas cannot be used as a means of profit for the company's abnormal channels. If there are insufficient quotas for the company, they should also receive relevant support in order to help the companies export their PV products to Europe."

In addition to the 94 companies that have obtained quotas, 40 PV companies that export to Europe may be subject to anti-dumping duties of 47.6% to 67.9%.

An insider of a new energy company among 40 companies told reporters that in 2012 the company exported 300 to 400 megawatts in Europe, and the European market accounted for 66% of its global sales. They were in Madrid, Frankfurt and Luxembourg. Both have sales companies. “Europe's customers are very tight. Now, we are mainly returning funds, but it is difficult. Next we will turn to sales in the domestic market, but we do not intend to abandon the European market, nor will we withdraw it. The sales staff still hopes that the country can give us support and help.” Not to fight for European quotas, the estimated number of quotas it can get is not much.

Although the other company is in the list of 94 export quotas, the sales director of the company still has doubts about the European market.

"Getting the quota is still one aspect. Now that we have enough orders, I am not confident enough." The sales director said that the company's exports are divided into two parts: photovoltaic modules and engineering general contractors, in the general contracting part Currently, in accordance with the regulations, Chinese companies and affiliates cannot export other PV products to Europe. In the past, part of the profits of the project's general contract was derived from the profits of other products.

A person in charge of investing in photovoltaics companies listed in the United States said that although they have quotas, the problem is that the European market will shrink. Last year, about 400 megawatts of photovoltaic products were exported to Europe, which accounted for 45% of all sales. However, this year it is estimated that it will drop to 25%. It is still difficult to determine how the reduced portion will be absorbed by the Japanese, domestic and US markets.