Renewable Energy Sector Shows Signs of Recovery: Insights on the Photovoltaic 50 ETF (159864)

The photovoltaic industry is showing promising signs of a shift away from excessive competition, particularly with growing interest in the Photovoltaic 50 ETF (159864).

On the morning of October 14, the photovoltaic sector experienced notable movements, driven by several key catalysts:

• Catalyst 1: On October 13, the National Development and Reform Commission (NDRC) released a draft implementation plan for the Minimum Proportion of Renewable Energy Consumption and the Responsibility Weight System for the Absorption of Renewable Energy Power. This initiative marks the first comprehensive framework for ensuring renewable energy supply from both consumption and absorption perspectives, which is beneficial for the photovoltaic and wind power sectors.
• Catalyst 2: Recent announcements from the NDRC and the State Administration for Market Regulation regarding the management of price competition are aimed at maintaining stable market prices. Additionally, industry associations have convened meetings to continue efforts against excessive competition.
• Catalyst 3: As of September 24, the weekly prices of photovoltaic components have shown an upward trend. Furthermore, a recent report from the international energy research firm Wood Mackenzie predicts that global prices for photovoltaic components may increase by approximately 9% in the fourth quarter of 2025.
• Catalyst 4: There are some ambiguous market rumors, including the potential implementation of production restriction policies that could impose requirements on existing capacity utilization rates and the possibility of setting up a silicon material capacity consolidation platform in mid-October to promote capacity reduction. However, the reliability of these rumors remains to be confirmed.

The upcoming Fourth Plenary Session next week is expected to be a significant observation point for the anti-excessive competition efforts. The integration of silicon material mergers and acquisitions, the establishment of energy consumption standards, and policies on production and sales restrictions are anticipated to gradually materialize. Moreover, the photovoltaic silicon material sector is expected to see a sequential improvement in performance for Q3 2025, benefiting from a combination of performance recovery and catalysts arising from the anti-competitive measures.

Investors interested in this sector may consider the Photovoltaic 50 ETF (159864), which provides comprehensive coverage of the entire photovoltaic industry chain. Additionally, the Carbon Neutrality 50 ETF (159861), which encompasses both photovoltaic and lithium battery sectors, is also worth watching.

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