Since the third quarter of 2013, several PV module manufacturers—including Jinke Energy—have successfully returned to profitability. From Jinke Energy’s perspective, achieving profitability during such a challenging period was no easy task. It required resilience, strategic adjustments, and strong operational discipline. At the same time, among the photovoltaic companies that have turned profitable, some have announced new capacity expansion plans. This has led some analysts to predict that the industry might still face overcapacity in 2014, with supply outpacing demand.
However, the current approach to industry growth is more measured. Instead of aggressive capacity expansion, many companies are turning to outsourcing, plant leasing, and mergers and acquisitions. As a result, there hasn’t been any significant new capacity added to the market. Meanwhile, demand has started to recover and grow steadily. It is estimated that global installed PV capacity will reach around 40 GW in 2014. China alone added between 8.5 and 9 GW last year, securing its position as the world’s largest market. For 2014, China is expected to install an additional 12 GW, representing a 20% increase from the previous year.
On the demand side, the benefits are clear. However, after experiencing the consequences of a previous round of rapid and uncontrolled capacity expansion, many companies are now being more cautious about future growth. They are not rushing into new projects and are instead focusing on sustainable development. This suggests that the risk of supply-side oversupply is low. In 2014, the photovoltaic industry is expected to see a better balance between supply and demand.
In this environment, customers are increasingly prioritizing brand reputation, product quality, system reliability, and long-term power generation performance. High-quality orders are flowing toward top-tier brands, while second-tier companies maintain stability, and third-tier players see their production capacities shrink. This shift not only ensures continued demand for PV products but also helps eliminate outdated and inefficient production, which is crucial for the industry’s long-term health.
Looking at the global market, the growth of PV demand in 2013 was largely driven by the three major markets: China, the U.S., and Japan. In 2014, while Japan may face uncertainty due to policy changes, both the U.S. and China are expected to continue growing. China, in particular, is projected to install 12 GW of solar capacity in 2014.
The domestic market has benefited from strong government support, leading to a period of rapid development for photovoltaic power stations. The annual growth rate is expected to remain around 20%, with stable revenue and expanding scale. As a result, the power station business is set to become a significant contributor to the industry's growth in the coming years.
2013 marked the beginning of China’s distributed PV market. Although there were ongoing policy adjustments and experiments, distributed power plants remained attractive when subsidies were timely, industrial parks were stable, and electricity tariffs were in place.
At the same time, it’s important to note that project owners are setting higher standards for power station quality and performance. The threshold for reliable power generation and system stability is rising. While many manufacturers are entering the downstream sector, the design, construction, operation, and investment in power plants require different expertise, technologies, and management approaches compared to component manufacturing. Simply following trends may not be effective; companies must develop these capabilities based on their long-term strategies and practical strengths.
Innovation and sustainability have been key drivers behind Jinke Energy’s early profitability. Looking ahead, the company remains optimistic, believing that the challenges of today will lead to stronger and more resilient growth in the future.
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