Amid Solar Pv Glut, China Turns To The Opec Model

More than 30 of the top companies signed up to a programme of self-discipline at the China Photovoltaic Industry Association's annual meeting last week, in an agreement fashioned after the way the Organisation of Petroleum Exporting Countries manages its oil supply.

The firms will receive quotas for how much they can produce next year, based on their existing market share and capacity as well as expected demand, according to local media.

The CPIA declined to comment on the agreement.

The accord comes as China's solar industry contends with overcapacity, heightened geopolitical tensions and slowing demand. Companies are focused on riding out the storm in the belief that it could be at least another year or more before profits begin to recover.

The agreement represents a sharp turnaround from years of stiff competition that have brought the industry to its knees, while at the same time slashing prices and raising quality to the point that solar power is the cheapest and fastest growing form of energy.