Private sector driving China's green-power advances

A technician checks solar panel products at a new energy tech company in Hefei, Anhui province. (RUAN XUEFENG/FOR CHINA DAILY)

In recent years, Chinese private enterprises have emerged as the dominant force in the country's booming solar energy industry, driving innovation, manufacturing and market expansion, said industry experts and company executives.

The surge in private sector involvement has laid a solid foundation for the high-quality development of China's economy, particularly in the renewable energy sector, they said.

"From upstream silicon production to downstream photovoltaic power station construction, China's solar power sector — where the vast majority of equipment manufacturing is led by private firms — exemplifies the growing role of China's private economy in energy transformation," said Zhu Gongshan, chairman of GCL (Group) Holdings Co Ltd, China's largest private power conglomerate.

"This robust system positions China as a leader in the global solar market, and the country's massive domestic market of over 1.4 billion people ensures a continually expanding demand for energy," Zhu said.

China's private solar companies have achieved significant breakthroughs in technological innovation in recent years, which have helped China consolidate its global leadership in solar technology, reducing the cost of production while improving energy output.

Yu Zhenrui, co-founder and president of UtmoLight Co Ltd, a Wuxi, Jiangsu province-based solar power firm, said the company has achieved multiple breakthroughs in just a few years, setting several records in the photovoltaic sector.

UtmoLight has recently launched the world's first gigawatt-scale perovskite solar module production line at a facility in Wuxi. The plant will produce 1.8 million panels annually, and the company is aiming for a 20 percent efficiency in mass production this year.

Li Zhenguo, president of Longi Green Energy Technology Co Ltd, a key player in the photovoltaic sector, believes China's continuous investment in solar power technology has made the renewable energy resource a foundational electricity source for energy transition and carbon neutrality worldwide.

The company achieved a module efficiency of 25.4 percent with its independently developed HPBC 2.0 solar cells last year, a new world record for crystalline silicon module efficiency. This is the first time that a Chinese solar tech firm has set a world record since 1988, breaking a 36-year monopoly held by foreign photovoltaic brands.

Zhu said the private enterprise symposium held in Beijing on Monday was truly inspiring and the national government's attention to private firms has given such companies great confidence.

"The meeting represents strong support for the private economy, providing private enterprises with reassurance and injecting new momentum into high-quality economic development. We will seize the opportunity to innovate in the new energy sector and contribute to the development of the private economy," he said.

The government's recent notice on promoting the integration of new energy sources into the electricity market also reflects the market value of private companies, he added.

With the ongoing improvements in power market trading systems, new opportunities are emerging for private companies in areas such as ancillary services and virtual power plants, Zhu said.

According to estimates by Huatai Securities, the virtual power plant market in China is projected to reach 10.2 billion yuan ($1.40 billion) this year, and could grow to over 100 billion yuan by 2030. This shift will undoubtedly open new avenues for private firms to diversify their portfolios within the new energy sector.

With the government's favorable policies, coupled with growing technological capabilities and the expanding scope for market opportunities, analysts believe China's private sector is well-positioned to continue driving the nation's renewable energy transition.

The country's increasingly diverse energy landscape will offer ample room for innovation and business growth in the coming decades, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

For China's private enterprises, the energy revolution is not just an opportunity to expand market share, but also a chance to play a pivotal role in shaping the global energy landscape in the years ahead, Lin said.