With considerable financial subsidies from the central government, private enterprises and local governments are keen to invest in projects that utilize solar energy. Hu Runqing from the Energy Research Institute National Development and Reform Commission told NewsChina that the Ministry of Finance has allocated 1.27 billion yuan (US190m) for solar project promotion and a total of 111 projects had appeared as of September 2009. For example, construction projects under the Golden Sun plan can receive grants of up to 50-70 percent of total investment costs.
Speed, Skepticism and Worries
By the end of 2009, there were a total of 52 polycrystalline production projects within China, representing an investment of over 130 billion yuan (US19bn) with a total annual capacity of over 230,000 tons. However, the domestic solar industry market demand remains, a mere 30,000 tons.
Although there is clearly money to be made in new-energy technology, there is skepticism among some experts about the effect of its development on the environment. Many say that China’s domestic PV market is growing faster than the government originally planned. In 2007, PV power to taled 100MW and according to the original proposal, PV power in 2010 should reach 300MW, increasing to 1.8GW by 2020.
However, due to technological advances, China’s total 2010 PV capacity had already exceeded its 2010 target, a full year ahead of schedule.
Disputes over whether China’s production capacity is overheating have continued since September 2009 when a report authored by the Financial and Economic Affairs Committee (FEAC) of the National People’s Congress (NPC) stated that 19 industries, including the solar energy industry, were plagued by over-production.
According to the FEAC report, wind and solar power projects across the country have encountered problems including the unnecessary duplication of projects due to a huge rush to invest in the sector.
Nonetheless, not everyone agrees that overproduction in the sector is occurring. During an interview with The Economic Observer, Peng Xiaofeng, chairman of LDK Solar, a well-known domestic solar panel producer, held that the central government’s warning about overcapacity in the polysilicon industry targeted firms with outdated production facilities that produce excessive pollution.
The photovoltaic cell industry, although labeled “green” by the international community, utilizes a refining process for industrial silicon that emits a number of toxic chemicals and may cause high levels of pollution if not managed correctly.
Environmentally harmful substances which may be released in polycrystalline silicon PV module production include fluorine, chlorine, nitrate, isopropanol, sulfur dioxide, carbon dioxide, respirable silica particles and chemical solvents.
Silica particles can be released in both the mining and refining stage. If they are small enough to be inhaled they may lead to the lung disease silicosis. Toxic fluorine and chlorine may be emitted into the air with dust particles, and are also water soluble. In March 2008, the Washington Post disclosed how one leading polycrystalline silicon producer in China, Luoyang Zhonggui
High-Technology, was dumping the polysilicon byproduct tetrachloride – a highly toxic substance – into nearby villages. Furthermore, there is growing consensus among domestic academics that the production of photovoltaic cells is prohibitively costly in terms of energy consumption. In 2000, the energy pay-back time (the time required to generate as much energy as was consumed during production) of PV systems was estimated at between 8 to 11 years, while in 2006 this shortened to an estimated 1.5 to 3.5 years for crystalline silicon PV systems, in line with EU standards.
Slow the Pace
With the whole world rushing to embrace so-called green technologies, China has moved quickly to secure its share of a lucrative market. Yet, in doing so, the country has left itself exposed to a litany of hidden dangers and uncertain side-effects, including potential health hazards to workers and the excessive consumption of conventional energy in the production process.
In European countries, there are numerous laws both at EU and national level that regulate the construction and operation of polycrystalline silicon production. Leading polysilicon manufacturers in Germany, including Wacker, have established systems to ensure byproducts from polysilicon production are recycled. As Christof Bachmair from Wacker’s Media Relations and Information Department explained to NewsChina, “in the polysilicon deposition process, up to 75 percent of the silicon metal ends up as the by-product tetrachlorosilane, and transforming tetrachlorosilane into other products or recycling and re-incorporating it into the production process is essential both from an economic and environmental protection point of view.”
In China, however, due to a lack of government regulation, polysilicon factories are not required to operate recycling facilities. As of 2004, to contain the development of certain high energy consumption industries, the Chinese government instigated a series of macro-level adjustment measures. By 2009, in addition to 17 percent value-added tax, the exporting tariff for industrial silicon has been raised to 15 percent. For some, however, such measures remain inadequate. Bertrand Piccard is a Swiss round-the-world balloonist and now engaged in building a solar-powered plane. As a solar energy enthusiast, the balloonist recently attended a green energy forum in Bonn, Germany, where he told the audience that, because there is no steering system in a balloon, you need to “change altitude to change direction, since at different altitudes, the winds blow in different directions.”
He further illustrated his idea by asking people “Do you want to go fast in the wrong direction, or do you want to go slow in the right direction?”
Given the current state of solar panel development in China, perhaps it’s time the Chinese government gave some thought to this question.
July 2010
