China’s solar panel industry is starting to look more and more like a beggar kneeling on the doorstep of Beijing, with the latest word that the central government is preparing to hand out an additional $1.1 billion in subsidies to the struggling sector. That news comes just after a government official was quoted saying Beijing is considering a plan to double its already ambitious target for a massive building spree of new solar electricity plants, again in a bid to support the struggling sector.
Tag Archives: First Solar
Solar: LDK Cuts, First Solar in China 中国光伏产业：几家欢喜几家愁
There’re quite a few news bits coming from the solar sector today, with more downbeat news from struggling LDK Solar (NYSE: LDK) even as 2 western panel makers make important new inroads to the China market. Meantime, Canadian Solar (Nasdaq: CSIQ) is also getting some good news in the form of new financing from a major western commercial lender for a new solar power project in Canada.
Solyndra Lawsuit: War of the Solar Dead Solyndra发难 光伏业者拼个你死我活
The fight for survival among the world’s embattled solar panel makers is starting to look more like a battle of the dead, with word that bankrupt US player Solyndra is suing 3 of its biggest Chinese rivals over allegations of running an illegal cartel. (English article) Some of you might be saying: “Wait a minute, doesn’t Solyndra have better things to do than to be filing lawsuits against rivals who are also flirting with bankruptcy?” If that’s the question, then the answer appears to be “no”. Perhaps the failed Solyndra is still seeking some final respect, and also perhaps some money through a quick settlement of this lawsuit to repay a long list of creditors that includes the US government.
China Gets Serious on Solar Energy 中国政府开始拯救光伏行业
After talking for much of the past year about plans to develop its solar power industry, Beijing may finally be starting to transform its words into action based on the latest signals coming from mid-sized panel maker JA Solar (Nasdaq: JASO) and an unusual move by leading US manufacturer First Solar (Nasdaq: FSLR). These 2 developments are interesting from a number of angles, as they could provide a welcome lifeline to the struggling global solar panel sector and also help to diffuse trade tensions with the west, which accuses China of unfairly subsidizing its industry. But before those tensions can really ease, Beijing will have to show it won’t favor its own solar panel makers in bidding for new China-based projects at the expense of western rivals. It will also have to take more concrete steps to wean its sector from the kinds of unfair subsidies behind the western complaints, including policies like low interest loans and export rebates.
Tech, Environmental Issues Cast New Clouds Over Solar Firms
As if things weren’t bad enough for Chinese solar firms, two new developments are casting clouds over this already struggling sector, one overseas and one at home. Overseas, foreign media are reporting that new solar cells with record efficiency developed by First Solar (Nasdaq: FSLR), one of the last US players still in business following a recent round of bankruptcies, could significantly undermine Chinese rivals. (English article) The second development has seen a smaller US-listed Chinese firm, JinkoSolar (NYSE: JKS) apologize for leaking toxic waste into the environment at its China plant, and promise to clean up the mess. (English article) Let’s look at the First Solar development first, as it probably has the biggest implications. First Solar has showcased a new technology that can turn more than 15 percent of the sunlight it captures into electricity, a huge increase over current top rates that now stand at around 11 percent. Presuming it can commercialize the technology quickly, this kind of efficiency should give the company a huge edge over its Chinese rivals like Suntech (NYSE: STP), Trina (NYSE: TSL) and Yingli (NYSE: YGE), which may have to further lower their already anemic prices to attract customers with their less efficient products. Of course the Chinese companies are also working hard to develop their own higher efficiency products, but unless they can bring some to market soon we might even see First Solar tie up with one or two Chinese producers if demand for the new high-efficiency cells is strong enough. As to JinkoSolar, this story highlights China’s growing concerns about its environment and crackdowns on companies that carelessly dispose of their wastes. I suspect that the larger solar makers are more responsible in their waste disposal, but wouldn’t be surprised to see unexplained rising costs on some of their balance sheets in the next year or two as they install more equipment to dispose of their toxic wastes in more environmentally friendly ways.
Bottom line: New high efficiency solar cells from a US firm will further pressure already weak prices at Chinese players, whose costs for treating their toxic wastes are also likely to rise.
Related postings 相关文章:
◙ US Solar Probe: Get Ready for China Bashing 美国太阳能调查：炮轰中国大潮的前奏
US Solar Maker Fights Back With Govt Loan
US solar cell makers are showing that their Chinese rivals aren’t the only ones who can count on government support to boost sales, with First Solar (Nasdaq: FSLR) announcing a big new deal with strong backing from Washington. Based in the sun-baked state of Arizona, First Solar said it will provide a hefty 100 megawatts worth of solar modules to India’s Reliance Power, with $85 million in financing for the project’s first phase coming from the policy-driven US Export-Import Bank. (company announcement) The deal marks a rare piece of good news for US-based solar makers, who have been battered over the last year by a global sector downturn and stiff competition from Chinese manufacturers like Suntech (NYSE: STP) and Trina (NYSE: TSL), which enjoy not only lower costs but also a wide array of economic incentives from Beijing. The tough conditions have claimed a number of US victims in the last month, with Evergreen Solar and SpectraWatt both filing for bankruptcy and another firm, Solyndra, expected to file shortly. (English article) This Ex-Im Bank loan for First Solar is relatively small, but any lifeline the US solar makers can get at this point is clearly welcome. They could also get another lifeline soon, following President Obama’s naming over the summer of a new commerce secretary with strong ties to the energy sector and a mandate to jumpstart more installation of alternate energy in the US. (previous post) If that effort moves forward, and the dwindling field of US solar makers get more government support, one or two may ultimately survive the current downturn, and even find a Chinese partner or two to boost their competitiveness in the sector’s ongoing shake-up.
Bottom line: First Solar’s big new sale backed by US government financing marks a rare piece of good news for battered US solar firms, who will need more support to survive the sector’s current downturn.
Related postings 相关文章:
◙ Solar Buzz at German Show on New Tech, M&A
◙ Suntech: Separating Good Solar from Bad
◙ LDK: An Exploding Star for a Sector in Turmoil
