March, 19, Chairman Liu received interview by CCTV 2 Economic 30’ on poly-silicon industry development.

On the downturn of 2011 poly-silicon industry, Mr. Liu summarized three reasons: a. severe influence of European debt crisis: EU’s support to the PV power generation is slowing down; b. Economic decline of the U.S.: market demand is lower than expected; c. Slow startup of domestic market: oversupply due to excessive poly-silicon projects in previous years. Mr. Liu aired his view on the situation: difficulty is also an opportunity. As long as the poly-silicon manufacturers keep improving techniques, lowering costs and promoting producing efficiency for industrial optimization and reconstruction, there will be a way. China’s poly-silicon production accounts for 1/2 of the world’s total in 2011. China used only 5 years to have achieved the poly-silicon technique level, on which the Western world had spent half a century.

On the industry prospect, Mr. Liu proposed to to further make a detailed plan on on-grid tariff and release administrative approval restriction. Meanwhile, he suggested that PV industry related standards be made and improved. In addition, it is necessary to unveil Renewable Portfolio Standard and clearly stipulate quota proportion for grid enterprises at different places, so as to speed up the access of renewable energy power to electricity end market. He further suggested that the State establish financing support policy to encourage and guide the participation of financing capital market into PV industry development. Mr. Liu pointed out, it is necessary to further expand installed capacity, and promote PV generation infrastructure construction in Western China to fundamentally solve China’s energy consumption problem for its peaceful rising. Taking the lead in the new energy era, China needs to promote the industry’s development. This is not simply a matter concerning development of the trade or industry, but also the real benefit of Chinese People from solar energy – the most economical and eco-friendly sustainable energy. More importantly, developing PV industry can alleviate pressure on China’s resources, and it is the inevitable choice for China to ensure its energy security in the long run. Meanwhile, China’s vigorous development of PV industry can help itself establish a good image in environment protection, energy conservation and emission reduction in the world. This is not just an issue at energy security and economy level, but more importantly, at morality and sense of responsibility level.