The polysilicon industry's access to real life challenges has been staged, and domestic demand has started to accelerate.

After the announcement of the “Polysilicon Industry Access Requirements”, the Ministry of Industry and Information Technology initiated an industry access application in the form of a notice, and asked all localities to verify the materials approved by the first applicant and submit the results and materials before July 15. Send the Ministry of Industry and Information.

According to a comprehensive interview with Southern reporters, the Ministry of Industry and Information Technology has started an entry application, indicating that the stagnating polysilicon project approval will be opened, which means that the industrial phase-out adjustment has officially started. After the industry access threshold is raised, the weak will remain strong, a large number of small and medium-sized enterprises will be eliminated, pollution will be reduced, and enterprises will be further encouraged to reduce costs through regulation and control and to expand the application of domestic photovoltaic power generation.

Access conditions emphasize environmental protection technology Recently, the Ministry of Industry and Information Technology has issued “Polysilicon Industry Access Application Report” notification to provinces and cities, requesting verification of the materials approved by the first applicant and submitting the audit results and materials to the Ministry of Industry and Information Technology by July 15. . According to the "Notice", local industrial and informatization authorities are responsible for accepting applications for polysilicon enterprises' access announcements in the region, and submitting verification opinions and company filing materials. The Ministry of Industry and Information Technology will organize experts and entrust relevant testing organizations to review and inspect the application materials, and publish a list of polysilicon companies that meet the conditions of accession in the form of an announcement together with relevant ministries and commissions.

Prior to this, in January this year, in order to promote energy conservation and consumption reduction in the polysilicon industry, eliminate backwardness and structural adjustment, and guide the healthy development of the industry, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Environmental Protection together with relevant departments formulated the “Polysilicon Industry Access Requirements”. The Ministry of Industry and Information Technology stated that in order to firmly suppress the industry's redundant construction and overcapacity, the conditions for access to the polysilicon industry have been formulated in accordance with the principles of optimizing the layout, adjusting the structure, saving energy, reducing consumption, protecting the environment, and producing safely.

Access conditions have made specific demands on the scale of polysilicon construction, as well as recycling and environmental protection. The conditions stipulate that the solar grade polysilicon project will have a scale of more than 3,000 tons per year, and the semiconductor grade polysilicon project will have a scale of more than 1,000 tons per year. In the future, polysilicon projects should be in line with national industrial policies, land use policies, and industry development plans, and the minimum capital ratio of investment in new construction and expansion projects should not be less than 30%. New polysilicon projects will be strictly controlled in areas where energy shortages and high electricity prices will occur, and polysilicon projects that lack integrated support, safety, health, and environmental protection will not be approved or filed. At the same time, polysilicon companies must also adopt advanced process technologies that meet the requirements of access requirements, and process equipment and safety facilities that have low pollution intensity, energy saving and environmental protection, and the main sections and equipment parameters should be capable of continuous online process detection.

After the access conditions were announced, the approval of polysilicon projects stagnated. In March of this year, the Ministry of Industry and Information Technology required that the minimum capital ratio of investment in new construction and expansion projects should not be less than 30%; before the new list of government investment project approvals is issued, the new polysilicon project will no longer be approved in principle.

The end of this year will be "the limit"

Now, the Ministry of Industry and Information Technology has started to apply for access, indicating that the approval of polysilicon projects will be opened, which means that the industrial phase-out adjustments have officially started.

Regarding the direction of adjustment, Lin Boqiang (microblogging column), director of the China Energy Economic Research Center at Xiamen University, stated that there are two, one is that the industry's access threshold is raised, and the weak will remain strong, thereby reducing pollution costs. The second is to increase the application of domestic photovoltaic power generation, start the domestic demand for polysilicon. He analyzed that in addition to high energy consumption, the polysilicon production process has serious pollution, small enterprises have low levels of technology, particularly heavy pollution and high environmental costs. Large enterprises are relatively high-level technology, light pollution, and have the strength to further improve the level of technology, and reduce pollution.

As far as the domestic photovoltaic market is concerned, the government is actively promoting the reduction of photovoltaic power generation costs and increasing domestic applications. Recently, Liang Zhipeng, deputy director of the New Energy and Renewable Energy Division of the National Energy Administration, revealed that during the “12th Five-Year Plan” period, the cost of photovoltaic power generation will be reduced to less than RMB 0.8 per kilowatt-hour. By 2015, solar power could achieve user-side parity access. To do this, polysilicon companies must be bigger and stronger. Meng Xianyu, deputy director of the China Renewable Energy Society, said in an interview with the media that the domestic market will only start if the cost and price of photovoltaics can fall to the level that the government and society can afford. The purpose of improving access conditions is to promote photovoltaic power generation to achieve parity online as soon as possible through national regulation.

Market participants believe that if strict access conditions are met, only a few polysilicon companies will be able to meet the target, and market resources will be accelerated to large-scale enterprises that have large-scale and technological and cost advantages. According to Jiang Qian, chief energy analyst of China Investment Advisors, 80% of China's domestic polysilicon manufacturers are small companies, which are generally around the scale of a few hundred tons. These companies are not as large as they are in terms of scale and energy consumption. It is the "big limit" that these small and medium-sized enterprises are eliminated. He predicted that the access conditions will eventually allow China to form about 10 polysilicon producers.

However, Lin Boqiang believes that before the conditions for entry are formulated, the government should do a map, and it is impossible to eliminate most of the companies at once. Moreover, domestic polysilicon companies are very scattered and mainly private enterprises. He predicted that according to the access conditions, after eliminating weak and small enterprises, there should be hundreds of thousands of companies that meet the requirements, and it is expected that private enterprises will become bigger and stronger.

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