China is now the sun for the world’s photovoltaic industry

A leading photovoltaic firm acknowledges China is now at the center of the industry.

Isofoton SA, a Spanish firm that is one of the world’s leaders in advanced photovoltaic technology, said cuts in subsidies by European governments to renewable energy makers has led to China’s growing industry dominance.

“We need to be in China not as a way to cut costs as the market is understood now but because there will be a real market,” said Chief Executive Officer Angel Luis Serrano. “It’s the right moment to be there.”

He made the statement following an investment of $300 million by China National Offshore Oil Corporation into a joint venture with Isofoton to develop photovoltaic plants across Asia. CNOOC is China’s biggest offshore energy explorer and is the third-largest national oil company in China after CNPC and China Petrochemical Corporation.

Isofoton is developing plants and shifting its manufacturing to China after subsidy cuts in 2009 caused sales of its photovoltaic panel unit in Spain to plummet. Solar equipment makers see China as the leading source of orders since Germany, the world’s biggest market, has cut support for its renewable energy industry.

CNOOC will take a 51% stake in the joint venture company through its subsidiary, Tianjin Lishen Battery Co. The JV will set up a 150 Megawatt manufacturing plant.

Isofoton was taken over by Spanish company Affirma Energy Engineering & Technology SL and South Korean firm Toptec Co. Ltd. in 2010. Samsung Group will invest 50 million euros in Isofoton to manufacture solar cells in its plant in Spain.