Middle East: China's photovoltaic industry "New World"

Abstract The Middle East has become a new continent for the global photovoltaic industry, attracting the attention of Chinese companies. On August 6, 2013, this day may seem ordinary, but for Chinese PV companies, it may be a day that affects fate. On the same day, the EU imposed 11.8% on PV products produced in China...
The Middle East has become a new continent for the global photovoltaic industry, attracting the attention of Chinese companies.


On August 6, 2013, this day may seem ordinary, but for Chinese PV companies, it may be a day that affects fate.
On the same day, the 11.8% temporary anti-dumping duty imposed by the EU on photovoltaic products produced in China will come to an end. If the two sides fail to reach a settlement by August 6, the tax rate will rise to 47.6%.

Industry insiders predict that since the main market for small and medium-sized PV companies in China is in Europe, at least one-third of domestic PV companies may close down after the EU's gates are closed.

In the face of the shrinking European market, more and more Chinese PV companies are beginning to look to the Middle East. The Middle East, which is currently full of development opportunities, especially the Gulf Arab countries, may become a new world for Chinese PV companies to continue their “going out” strategy.
The Middle East has become a photovoltaic "New World"

Speaking of the Middle East, the traditional concept holds that the Arab rich who are rich in oil and gas resources do not need to develop new energy. But in fact, with the increasing energy crisis and increasing environmental awareness in recent years, Middle Eastern countries including Gulf oil producing countries such as Saudi Arabia, United Arab Emirates and Qatar have realized that oil and natural gas will eventually dry up. It is imperative to change the energy structure and increase the use of clean alternative energy.

At the same time, the Gulf countries on the Arabian Peninsula are mostly in desert areas, and the sunshine conditions are abundant. The rapid economic development and population growth in recent years have led to a surge in demand for electricity. The combination of ideas, capital advantages, innate natural environment and development needs, these combined factors make the Middle East a new continent for the global photovoltaic industry.

In the face of this booming emerging market in the Middle East, some of the savvy Chinese PV companies have actually started to take action in the beach a few years ago.

Trina Solar, one of the four largest PV companies in China, has participated in the Middle East World Energy Summit, the Abu Dhabi New Energy Ministerial Roundtable, the Dubai Global Energy Summit and the China-GCC in Bahrain since 2009. High-end international conferences and exhibitions such as the National New Energy Summit, while capturing the latest development opportunities in the photovoltaic industry in the Gulf region, actively demonstrating the company's own advantages and good image to the outside world, and officially settled in the Middle East in November 2011, and established Tianhe. Light Energy Middle East Co., Ltd., located in Masdar City in Abu Dhabi, is based in the UAE as a foothold covering the entire Middle East market.

Hire a Middle Eastern expert to "check"

Li Peng, manager of Trina Solar Middle East Co., Ltd., said that Trina Solar has long provided high quality products and localized professional services to more than 60 countries around the world, and has won wide recognition in the international market. Despite the overall sluggish industry in recent years, Trina Solar has continuously strengthened customer communication, attempted to build manufacturing bases abroad, and actively explore emerging markets such as Asia Pacific and the Middle East. The export growth rate is much higher than that of European and American markets.

Li Peng revealed that Saudi Aramco dispatched a core management team in February 2012 to visit the Trina Solar headquarters in Changzhou, expressing its intention to strengthen cooperation with Chinese PV companies. When the Tianhe team visited Jordan last year, it was received by the Jordanian Energy Minister and invited Trina Solar to participate in the Jordanian solar project.

Different from some small and medium-sized enterprises in China, Tianhe is actively committed to creating a “vertical integration” industrial chain model, extending its development to “polysilicon-battery components-solar power generation”, which not only significantly reduces production costs, but also makes products Quality is effectively guaranteed.

Li Peng said that in addition to price advantage and reliable quality, another magic weapon that Tianhe wins in the Middle East market is localized professional services. At present, the company's team backbone in the UAE includes two Jordanian experts with rich industry experience, which is very important for doing public relations and opening up the market in the Middle East. Li Peng said: "After one year of hard work, we have established good relations with major power development companies and government agencies in the Middle East, laying a solid foundation for more photovoltaic power generation projects in the future."

Yan Xiaohua, CEO of Artis, another well-known company in China, said that the company began to sell some product components in the United Arab Emirates and Saudi Arabia in 2011. “Last year, our products sold well in Abu Dhabi, so I am very interested in the Middle East market. People in the Middle East realize that if they all use oil and gas to generate electricity, they are actually doing a loss-making business. The best way is to install Solar energy, so they can export more oil," he said.

Yusuf Al-Akraf, executive vice president of the Dubai Hydropower Bureau of the United Arab Emirates, said in an interview with this reporter that the Afghan side is deeply appreciative of the performance and reputation of Chinese PV companies in the international market, especially in the process of research and development of new technologies to reduce costs. And the global resource allocation system is impressive.

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