Driven by EU's 2050 carbon neutrality target, EU countries are actively promoting energy transformation. According to PV Infolink, around 66.5GW of PV capacity was installed in the European market in 2023. In 2024, this number is expected to increase to 95GW, with high growth expectations in the coming years.
This vast market has attracted countless heroes. Tongwei, which has fully laid out its module business since 2022, has also set its sights on the European market for the first time. Relying on its advantages of vertical integration as well as the team’s continuous hard work and expansion, this leading PV company has targeted top distributors in key countries in Europe and established stable cooperations with them.
While gradually improving distribution channel construction in the European market, Tongwei has also achieved good shipments and established a stable business framework simultaneously.
This year, for the European market, Tongwei has launched a new TNC-G12/G12R module series, which continues the consistent high-quality tradition of Tongwei genes, and has achieved full power coverage from 455W to 720W with Tongwei's self-developed and self-produced TNC high-efficiency cells and industry-leading manufacturing technology. Recently, Mrs. Li Yan, Vice General Manager of PV Business, Tongwei Solar, spoke to PV Tech in an interview.
95GW Expected! The Rapid Growth of the European PV Market Presents Challenges
PV Tech: In the last two years, the European PV market has become the focus of industry attention, whether it is new installations, policy incentives or trade relations, etc., how do you see the European PV market? What are its characteristics? What are the challenges?
Li Yan: In my opinion, the most notable feature of the European market is its swift growth. Data from PV Infolink for Q1 2024 indicates that the PV installed capacity in Europe was approximately 66.5GW in 2023, and this number is anticipated to rise to 95GW this year, with the expectation of rapid and sustained growth in the coming years.
The second characteristic is the substantial policy incentives. The EU's "Green Deal" and "European Climate Law" have further defined the objectives for renewables development. A range of incentives have been implemented, including tax benefits, feed-in tariffs and net metering systems, all aimed at propelling PV development through policy initiatives.
It is imperative to address policy volatility when talking about challenge. Despite the significant policy incentives currently in place across various European nations, there is a lack of stability in the policies of some countries, which in turn leads to market fluctuation. The swift policy changes will also directly impact investor confidence, casting a negative influence on the long-term PV project planning and investment.
Furthermore, the grid infrastructure in some parts of Europe is outdated and is unable to accommodate the demands of a large number of distributed PV systems. The rapid growth in PV installations presents new challenges to the stability and the dispatching capacity of the grid. The grid needs to be more adaptable and flexible to cope with instable PV power generation.
Finally, the impacts of geopolitical conflicts should not be underestimated. In particular, the Red Sea crisis since November 2023 has led to ocean freight capacity constraints and a multi-fold increase in transportation costs for PV exports. Cargo security and delivery lead times have also been affected, and inventories in transit have increased with longer voyages.
PV Tech: How is Tongwei's expansion in Europe? In which European countries does Tongwei perform particularly well based on its strategic layouts?
Li Yan: In 2022, Tongwei started to comprehensively deploy its module business. In Europe, we have locked in the top distributors in key countries and established stable cooperations. While gradually improving the construction of distribution channels in the European market, we also achieved good shipments, and simultaneously built a solid business framework. Memodo is one of our noteworthy distribution customers. All these achievements were made thanks to the advantages of Tongwei’s integrated industrial chain and the accumulated reputation and brand influence.
On the other hand, we have actively established effective contacts and cooperation with major European IPP and EPC companies, and have made substantial breakthroughs, winning several projects of over 100MW in a row.
PV Tech: What product portfolio is Tongwei highlighting for the European market this year? Why do you want to focus on these products?
Li Yan: This year, we have strategically introduced the TNC-G12/G12R new module series into the European market. Equipped with our self-developed TNC high-efficiency cells and cutting-edge manufacturing technology, these products uphold Tongwei's tradition of excellence, achieving power coverage ranging from 455W to 720W.
Addressing the current demand of the European PV market, which is predominantly focused on distributed projects, we have launched the TNC-G12R module series. They offer superior economic benefits with optimal dimensions, reduced Balance of System costs and minimized Levelized Cost of Electricity. The innovative low-voltage design can increase the number of single-string module connections and the output per string, reduce the number of strings required, and cut down on expenses for mainstream cables, support systems and installation labors, thus maximizing the investment value of distributed projects.
At the same time, for utility-scale power plants that occupy a certain market share, we have also launched the TNC-G12 module series, which can be adapted to centralized, distributed C&I project scenarios, with a single string power increase of 30% compared with the conventional version of TNC-M10 72 module series. A power plant of the same capacity can reduce the number of strings by 30%, thereby reducing the number of supports, pile foundations and cables to lower construction costs for higher customer returns.
75GW！Significantly Increasing Advanced Capacity and Grasping the Initiative of Supply
PV Tech: In terms of products, what changes have taken place in the company's module capacity this year (scale, proportion of advanced capacity, etc.)? For Tongwei, what are the key tasks and objectives in the international market this year?
Li Yan: To date, our existing module capacity stands at 75GW, marking a notable increase compared to the previous year. In particular, in terms of advanced capacity, we have expanded production of large-size modules such as the TNC-G12/G12R series, to deliver higher output and offer efficiency products to the global market.
Our most important goal this year is to comprehensively strengthen the prestige of the Tongwei brand in the global market. We will make our presence at international exhibitions and industry summits to continuously enhance the brand's global influence.
This year, we will also officially operate our German branch to actively establish a local sales network in the European market to better meet the globalization challenges and enhance our international competitiveness by a localized approach. We will dig deeper into the core market, solidify and strengthen the distributed channels overseas, and vigorously accelerate the development of project markets.
PV Tech: What do you think are Tongwei's strengths in the international market? What do customers say about Tongwei?
Li Yan: The greatest advantage of Tongwei in the international market is its vertical integration strategy. As the only company in the industry that has fully integrated industry chain from polysilicon, wafers, to cells and modules, our integrated strategy has been increasingly recognized by the international market amid the fierce competition for its stability, scale and brand advantages.
At this stage, we have firmly grasped the initiative in the supply of core PV raw materials, and successfully established a complete PV industry chain with independent intellectual property rights. As a responsible PV company, we have achieved remarkable results in building green, low-carbon, and responsible supply chains.
At present, Tongwei owns four national-level green supply chain management companies, and has obtained 33 carbon footprint certifications. Furthermore, we have established special working group for supply chain traceability, demonstrating with practical actions our commitment to product supply assurance, environmental protection and sustainable development.
Decades of development have won Tongwei a good reputation in the market. Tongwei has always relied on excellent products and service to win widespread acclaim from international customers, supporting every customer's development with the most cutting-edge technologies and products. Relying on its profound industry experience and technology know-how, Tongwei continues to innovate amid the fierce market competition, to develop products that are more competitive and more in line with market demands.
Tongwei's product delivery strength is also a key factor for users around the world to choose Tongwei modules. Since the first batch of TNC-G12 products rolled off the production line, it only took four days for Tongwei to complete the shipment, and we have been responding to customer needs with efficiency. In the future, with the continuous module capacity expansion, we will continue to ensure the consistency of the production process and strictly meet the local requirements of module product delivery.
Implementing Four Major ESG Strategies to Promote Green Transformation
PV Tech: In recent years, ESG disclosure has received increasing attention in Europe and other markets. What are some of Tongwei's notable achievements and strengths in ESG?
Li Yan: Prior to ESG becoming a focal point for global markets, Tongwei was already at the forefront of integrating ESG principles into every facet of its operation and achieved tremendous progress. In 2023, Tongwei refined its sustainable development strategy with the mission of "Together to Win," advocating the core concepts of "build together", "govern together" and "share together". Tongwei has implemented four ESG strategies of harmonious partnership, steady development, beautiful ecology and value creation at multiple levels of corporate governance.
In terms of ESG actions, in Q1 2024, Tongwei joined a number of international initiatives and alliances based on its development strategy and unique culture. For example, Tongwei officially joined the RE100（100% Renewable Electricity） global initiative as a Gold member, aiming to achieve carbon neutrality at the operational level by 2030 and the goal of 100% renewables.
Moreover, we have formally signed the UN Women's Empowerment Principles Treaty to actively work for the empowerment of women.
In environmental protection, we have published the "Environmental Management Commitment and Policy," "Biodiversity Protection Commitment and Policy," pledging strict adherence to local environmental protection regulatory requirements on resource utilization and emissions management. We have actively employed effective and innovative technologies and measures to combat climate change to ensure that the environmental impact of our business activities is minimized.
The excellent performance and strength demonstrated by Tongwei in ESG not only won high appreciation from investors and consumers, but also demonstrated the company's strong commitment to sustainable development and determination to make continuous progress. Through continuous innovation and social responsibility practices, Tongwei has actively promoted green transformation, led industrial development, and made positive contributions to society and environment, demonstrating its leadership in green and sustainable development and contribution to sustainable development globally.
