Distinguished guests, I am Zeng Yi from Trinasolar. It is a great honor to share with you Trinasolar's low-carbon practice in the supply chain online.
Trina Solar is a global leader in photovoltaic manufacturing. We have a history of 25 years. Our business mainly covers the manufacturing of photovoltaic products, including PV modules, trackers, and batteries. At the same time, we invest in utility-scale and distributed solar power plants. We also have a smart energy unit, offering services like smart energy storage solution and cloud platform. Our business is wide-ranging and we keep an open mind about all opportunities in the sector of solar PV. For example, we are incubating new businesses such as hydrogen production using solar power.
Trina Solar was founded in 1997 and has a history of 25 years. We have been adhering to the vision of our company to make solar power benefit all mankind. In the past 25 years, we have set 25 world records in PV cell efficiency. We are also the first PV company to have a state key laboratory. Our products have won multiple awards, including the Red Dot Award, which is known as the "Oscar of the design world”.
Over the past 25 years, we have shipped 120 GW to the world, reducing carbon emissions by 135 million tons worldwide.
We have a global presence covering over 150 countries. In the past few years, our financial performance has been nothing short of spectacular. We expect our revenue to reach 90 billion yuan this year. We have been rated as 100% bankable by Bloomberg surveys for many years. The slide shows our global sales network and manufacturing bases. Headquartered in Changzhou, Jiangsu Province, China, we have outlets and sales centers in Europe, the United States, Africa, Latin America, South America, the Middle East and the Asia-Pacific region.
In addition to China, we also have manufacturing bases in Thailand and Vietnam and have built solar PV stations around the world. The pictures here show our past projects, including the floating power station in France, the trackers and the power station in Latin America, and the desert power station in Qinghai,China.
Trinasolar has always prioritized environmental protection and carbon emission reduction. So far, the cumulative power generation of our shipped products has totalled 135 TWh, helping to achieve a carbon emission reduction of 135 million tons. Our products have also resulted in the reduction of sulfur dioxide and particulate matters, to the tune of 4.05 million tons and 36.72 million tons respectively. We have joined the SBTi initiative and are committed to limiting the global temperature below 1.5 degrees. We are currently in the process of setting the long-term and short-term carbon reduction targets.
As we all know, there are four pillars of decarbonization, namely electrification, energy conservation, low carbon electricity, and negative emission technologies. Solar power is an important source of low-carbon electricity. We expect that solar power to account for about 40% of the total human energy supply in 2060.
Over the past 10 years, we have witnessed a drastic decrease of the cost and the rapid increase of deployment of the solar PV. The global installed capacity of solar PV has expanded almost 10 times over 10 years. In the future, the installation will accelerate. We expect that by 2035, the average annual increment of installed capacity will reach 1GW.
但是在光伏制造過程當中，其實并沒有實現真正的carbon free，就是說并沒有實現真正意義上來的零碳。那么也就是說，光伏電實際上還是有碳成本的。從現在來看，按照全生命周期計算，大概每一度電仍然有產生41克到48克的碳排放。這41克是怎么產生的呢? 主要是來自與光伏制造，建設和運輸過程當中也會有少量的碳排放。
However, PV manufacturing is not carbon free. That is to say, solar power still leaves a carbon footprint. It is found that the life cycle carbon emission per kilowatt hour of solar power is about 41 grams to 48 grams. How does this carbon emission come into being? Most of the emission can be attributed to the manufacturing process, while a small fraction occurs in the process of construction and transportation.
In view of 75% of the carbon emissions during the manufacturing process, Trinasolar has put forward the Qinghai strategy. It is to invest in Qinghai the whole value chain of the solar PV industry, covering silicon metal, polysilicon, silicon wafers to cells and modules.
We have analysed our manufacturing process and found that 95% of the emissions come from electricity consumption. Qinghai has unique advantages to address this. Qinghai is the province with the highest proportion of green electricity in China, reaching about 85%. This is a significant improvement compared with the national average. Therefore, selecting Qinghai as the manufacturing base is vital to carbon reduction. It means that 85% of the electricity used in manufacturing is low-carbon.
The abundance of solar radiation also provides optimal condition for solar electricity generation. Qinghai has the longest sun hours in China. An average PV power station in Qinghai can generate electricity for as long as 1800 hours. At the same time, Qinghai is also a province at the risk of desertification, with more than 90% of the land facing extreme climate. By building solar PV plants on the vast dryland, we are able to produce massive amount of electricity as well as solving the problem of desertification. As you can see from the picture, we have built PV stations in Gonghe, Qinghai, in partnership with Huanghe group. The placement of solar panels alleviates evapotranspiration and wind erosion of the soil, turning the dryland to grassland. The grassland in turn provides fodder for animal husbandry and create an additional stream of income for local herdsmen. Therefore, the Qinghai strategy sets an example for the joint development of green electricity and ecological restoration. The total solar PV capacity we will install is 14 GW, which will generate 12.4 billion kilowatt-hours of electricity annually. This will offset the entirety of Scope 2 emissions.
In addition to using green electricity, we also take great stock by investing in the circular economy and energy efficiency measures. Through these measures, we can reduce the electricity consumption by 413 GWh per year, and the natural gas consumption by 14.5 million cubic meters per year. Specific measures include steam recovery, oxygen recovery and heat recovery during the polysilicon production stage; PCW waste heat for residential warming and heat re-use for module manufacturing during the wafter production stage; and packaging recycling during the module production stage.
The Qinghai strategy is important not only for its carbon reduction credential, but also for its great economic and social value. Qinghai is one of the least developed provinces in China. By tapping its renewable energy resources, Trinasolar has brought more than 50 billion yuan of investment to Qinghai, equivalent to about 15% of its GDP. It will also generate 1.8 billion yuan in tax revenue per year and create more than 10,000 jobs. Meanwhile, our presence will attract investments from other enterprises to complement our supply chain.
In fact, the Qinghai strategy has created a new model of economic development. The abundance of low-carbon electricity in the west will attract new investments from energy intensive industries, boosting the development of local economy. The economic development will in turn enable the integration of solar power and reduce the need for long-distance transmission. The development of solar power will further create a positive impact on the ecological environment. This really achieves a desirable harmony between economy, environment and society.
Through the implementation of the Qinghai strategy, we are able to achieve deep decarbonation in Trinasolar’s upstream supply chain. By 2035, carbon emissions will be reduced by 108 million tons. This is equivalent to 96% less carbon emission than if the investment were to occur in Eastern China. Scope 2 emissions will be 100% eliminated. We are also able to produce 7.8TWh surplus green electricity, which will be used to supply the surrounding communities and industries.
Ladies and gentlemen, it is a great honor to share with you Trinasolar’s strategy in supply chain decarbonation. In my opinion, our Qinghai strategy is replicable and can be upscaled to other places with similar conditions, such as the Middle East, North Africa and Mongolia, for the joint development of renewable energy and economy and for ecological protection. The Qinghai Strategy will certainly inject vitality into western China, and will contribute to its ecological restoration. Thank you very much again for listening to my speech. I sincerely welcome you to visit our base in Qinghai. Thank you all.