Jiangsu Solar News

Comtec Solar has inked a contract to invest US$100 million to research and develop solar cell materials in Hai'an Economic Development Zone, Jiangsu Province. The project will be completed in two years.

The solar cell wafer manufacture also yesterday signed a supply contract with China Sunergy Co Ltd to provide wafers with power totaling 40 MW during the period from March to December 2010. John Zhang, president and chief administrative officer of Comtec Solar, said that the firm aims to produce 504 MW of wafers by the end of June and 600 MW by the end of September.

China Sunergy, a solar cell producer based in Nanjing, Jiangsu Province, will report financial results for the fourth quarter of 2009 on Mar. 11, according to the firm's website.

Deutsche Bank's China Solar Upgrades 26 Feb 2010

Deutsche made the following upgrades today:

Trina Solar (TSL) from Hold to Buy, price target raised from $20.35 to $29.80. Deutsche notes that Trina has been a “significant outperformer” but also admits that valuation remains attractive. The firm said it believes “Trina’s robust cost structure could allow it to weather a likely ASP decline and capture more market share from higher-cost western manufacturers.” Deutsche sees Trina’s module shipments remaining strong during the first half of this year, citing “rush orders from Germany ahead of an anticipated feed-in-tariff cut before June 2010.”

Yingli Green Energy (YGE) from Hold to Buy, price target raised from $11 to $15.20. The firm said it is attracted to Yingli’s “strong pricing power on its low cost advantage, increasing brand awareness, proven quality track record, strong focus on R&D, and continued capacity expansion in light of market recovery and competitive advantage.” Deutsche sees Yingli reporting FY11 EPS of $0.95. The firm also said that poly cost at Yingli will fall to $75/kg in Q1 and to $60/kg in Q2.

Renesola (SOL) from Hold to Buy, price target raised from $4.67 to $6.30. Deutsche Bank believes that Renesola is “out of the woods”. The firm sees Renesola becoming profitable sometime during this year, citing high-cost polysilicon inventory which has been “mostly consumed” and benefits from vertical integration which have now started to kick-in. “With further downward pressure on module ASP, we believe Renesola is well poised to receive more orders as its vertically integrated OEM model offers a cost-efficient solution to some high-cost western manufacturers.” The firm sees Renesola reporting a Q4 loss of $15 million (on March 10).

Suntech Power (STP) from Sell to Hold, price target from $10.30 to $14.30. Deutsche says “long-term positive on its leadership position but rated Hold on valuation.” The firm argues that Suntech’s “profitability in 2010E has not yet normalized due to more rigid long-term raw materials supply contracts signed at higher cost compared to peers.” Deutsche is modeling for Suntech to report Q4 shipments of 234MW, up 16% from Q3 and compared to the company’s guidance of 10-15%. Still the firm expects Suntech’s ASP to fall from $2.17/watt in Q3 to $1.53/watt in Q4.

Yingli Signed Framework Agreement with Gehrlicher Solar

Yingli Green Energy Holding Co. Ltd. has signed a three-year framework agreement with PV system integrator Gehrlicher Solar AG.

Under the terms of this agreement, Yingli Green Energy has agreed to supply 285 MW of PV modules to Gehrlicher Solar over a three-year period through 2012. The PV modules to be supplied by the company under this agreement are expected to be installed mainly in residential, commercial rooftop and ground-mounted power plants across European PV markets.

SOURCE: Yingli Green Energy Holding Co. Ltd.

Suntech in Arizona

There have been some comments coming from Suntech saying Arizona's HP2701 could derail the company's plans for a manufacturing plant near Phoenix. It's just talk. The bill has a long way to go before it's enacted. I have been talking to several Arizona friends over the last couple of days. A couple have worked in state politics. None of them are surprised by this move to just declare the portfolio accomplished by making nuclear a renewable energy. I had no idea Arizona politics has such a bad reputation. Granted, I have only talked to a couple of people so this is far from a reliable poll.

This HP2701 flair up at Suntech might be useful to see more into why they chose Arizona in the first place. I have talked to people in the Greater Phoenix Business Council who talk about the state's business-friendly policy that is shaped by the governor's office. They have also mentioned low property prices, specific tax incentives, and state money for training and education.

Suntech as talked about looking for another state for this plant in response to HP2701. It will be interesting to watch what they look for in an alternative location.

Even if Arizona's legislature or the governor come to their senses and stop the bill from enactment, there could be damage already done to the state as a destination for renewable companies.

Trina Solar Develops New Square-Cell Tech

Trina Solar Ltd. says it has achieved a breakthrough in its development of monocrystalline cell technology. The company developed a square monocrystalline cell with enhanced power output using its proprietary improved cell manufacturing process.

Using specially designed metallization and passivation techniques, the advanced cell structure is expected to significantly boost cell conversion efficiency, achieving up to 18.8% efficiency in test laboratory production, according to Trina Solar. In addition, this technology is expected to improve module output due to increased light absorbing surface area of the square shaped cell.

SOURCE: Trina Solar Ltd.

Asian Development Bank to Fund Solar Project in China

The Asian Development Bank (ADB) is getting involved in China's solar power sector through a technical assistance project designed to pave the way for large-scale concentrated solar thermal (CST) power use in the country.

ADB is extending a $1 million grant that will be used to implement a 1.5 MW CST pilot project and to carry out the pre-feasibility assessment of a 50 MW CST power demonstration project in Dunhuang, Gansu.

The PRC has been making rapid progress in developing renewable energy sources to help reduce its heavy reliance on coal, with wind power generation posting significant growth. However, development in the solar power sector has been more limited.
CST power, which provides electricity by generating heat to operate a steam turbine that drives a generator, has advantages over solar photovoltaic panels as the power produced is available continuously and at a more competitive price. However, there is currently a lack of knowledge and expertise on the most appropriate CST power technology for PRC.

"Understanding new technologies through MW-scale pilot projects is crucial to building up knowledge and capacity that may lead to the development of large-scale plants," said Ashok Bhargava, Principal Energy Specialist in ADB's East Asia Department.

The technical assistance will also develop a 'road map' for CST demonstration projects in Gansu province, and provide information to other provinces on lessons learned and the challenges facing CST power development.

ADB's grant comes from its Climate Change Fund - established in 2008 to invest in projects that address the causes and consequences of climate change - while the Government of the PRC will provide $1.7 million, for a total technical assistance cost of $2.7 million.

The China Huadian Engineering Company Ltd. is the executing agency for the project, which will be implemented over 13 months, with an expected completion date of March 2011.

Suntech Says Drop in German Incentives Means More Panels to US

On Wed 4 Feb 10, Matt Daily in Reuters quoted Roger Efird, Suntech's managing director for business development in the United States, as saying the company is planning on the US absorbing surplus supplies brought on by Germany cutting solar power incentives.

"Anything that happens in Germany has a ripple effect," Efird said at the RETECH energy conference. "Solar modules that companies had planned to sell in the German market will probably come to the United States, which could become the biggest solar market by 2013.

Solar companies have struggled in the past year as a glut of supplies pressured module prices by about 40 percent, squeezing profit margins in the nascent industry, and the additional supplies that had been destined for Germany will push U.S. prices even lower.

"I'd say at least another 10 percent drop in pricing, maybe as much as 15 percent," Efird said.

Yingli is First Chinese Company to Sponsor World Cup

I have always liked Yingli and now I have another reason to be a fan. They are the first Chinese company to announce they are sponsoring the World Cup.

On Wednesday 3 Feb 09, the announcement was made at a Beijing news conference. "The announcement of Yingli Green Energy as the first Chinese company to be a global sponsor of the World Cup marks a historical moment," FIFA President Sepp Blatter said in a video message.

"I want to commend Yingli on this sponsorship and their commitment to helping us build a better future, which is one of our most important missions."

The financial details of the sponsorship deal were not disclosed but Yingli will equip with solar panel all 20 of FIFA's "Centres for 2010", one of the world governing body's main legacy projects in Africa.