Sunny Prospects

　　Ann Itto, Deputy Secretary Generalof theruling Sudan People’s Liberation Movement, wasimpressed and inspired after visiting the factoryof Trina Solar, one of China’s top four photovoltaicproduct makers - and is keen to use such technologyto tap into the rich solar energy resources ofher own country.

　　Itto was on a trip to China toattend the FourthForum on China-West Asia and North Africa Smalland Medium Enterprises Cooperation, held inChangzhou, in east China’s Jiangsu Province, fromJune 26 to 27.

　　“China has gained rich experience inthephotovoltaic industry, and is capable of providinghigh-quality photovoltaic products and services atlower prices, and African countries like South Sudanhave great potential to develop in this sector, asthey get a lot of sunshine,” Itto told ChinAfrica, hopingto encourage Chinese companies to invest inher country’s photovoltaic industry.

　　Her invitation provides an opportunityforChinese photovoltaic enterprises that are strugglingwith overcapacity, an anti-subsidy and anti-dumpingprobe by the European Union and a decrease ingovernment subsidies. Chinese photovoltaiccompanies, including Trina Solar, have now begunsetting their sights on Africa.

　　Huge potential

　　Industry insiders are all focusedon the huge marketpotential of Africa’s photovoltaic industry. A reportby the Innovation and Technology Center of theInternational Renewable Energy Agency estimatedthat the electricity demands of African countrieswill expand 10-fold in the next 20 years. By 2030,half of Africa’s required electricity will be generatedby renewable energy resources, 14percent of which will come from solarenergy.

　　ClearSky Advisors, a Canada-basedadvisory body, reached a similar conclusionin a report released this May.

　　The report predicted that South Africaand Morocco will be the most promisingemerging markets for the applicationof photovoltaic technologies in Africa.Morocco is currently working to completea solar power plant with a generatingcapacity of 500 mw by 2015.

　　China’s promise to increaseaid for African countriesdealing with climate change will also help tapthe sector’s potential. At the UN Conference onSustainable Development (Rio+20 Summit) heldin Rio de Janeiro in July 2012, China’s then PremierWen Jiabao promised that China would contribute200 million yuan ($31.7 million) to a three-yearinternational project to help small island countries,least-developed countries and African countriestackle climate change.

　　Africa is also attracting investmentin this areabecause its emerging markets have many advantagesover Western markets. “Western countrieshave been setting stricter standards for Chinesecompanies that wish to enter their markets, andalways have an unfavorable impression of productsmade in China,” said Li Peng, head of Trina Solar‘sMiddle East branch.

　　“In contrast, there is a solid foundation of Sino-African cooperation that allows Chinesecompanies to get involved in settingstandards for the photovoltaic sector andwork with local enterprises to boost itssound and sustainable development,”added Li.

　　Long-term gain

　　Despite Africa’s huge market potentialand invitations from African countries,Trina Solar still has a careful attitudetoward exploring the African market. “Wehave technologies that can be used inAfrica, but we will not rashly start an op-eration there before financing issues are resolved,”said Li, explaining that investment in photovoltaicprojects will not produce quick profits. For example,if the company invests in building a power plant, itwill take eight to 12 years to recover the cost of theirinvestment.

　　Most African countries are toopoor to affordphotovoltaic products. The large-scale photovoltaicprojects built by Chinese enterprises are mostly aform of aid, with very few of such projects being runby commercial operations.

　　“Africa’s photovoltaic sector’s deep dependenceon foreign aid makes investing in the sector a highriskprospect, as the amount and continuity of aidpolicies are influenced by the nation’s political andeconomic situation,” said Xie Feng, a senior analystwith IMS Research.

　　Because the power grid infrastructure inmany African countries is poor, capital is needed toequip and build up a network for electricity transmission,which adds to investment costs, he said.

　　“Chinese enterprises also face difficulties in adaptingto local situations. But they are still capable of accomplishinga great deal in a short time in Africa,”said Xie.

　　By Hou Weili