A critical analysis of the photovoltaic power industry in China – From diamond model to gear model

The solar photovoltaic (PV) is an emerging renewable energy technology. With massive resource potential and commercial prospects, the development of the Chinese PV power industry is exceeding expectations. Chinaʹs total PV power installations will account for 5% of the total electric power capacity by 2050. A diamond model approach is adopted in this study to identify and analyze factors that have significant impacts on the development of Chinaʹs PV power industry. These factors include: factor conditions, demand conditions, chance, firm strategy, structure and rivalry, related and support industry, and government. Each factor identified in the model affects the competitiveness of the whole PV industry from a different angle. Therefore all factors ought to be strengthened for the long-term development of PV industry. A gear model is developed as a result of diamond model analysis. This model provides a useful tool to show the dynamic interactions among all factors affecting the development of the Chinese solar PV industry.