Trina Partners with Australia's Origin Energy

Trina Solar announced 18 Aug that through its subsidiary, Trina Solar Australia, it has signed a strategic partnership with Origin Energy Australia, the leading Australian integrated energy company. Under the terms of the agreement, Trina Solar is expected to supply Origin with approximately 22 MW of PV modules over the next twelve months starting from the third quarter of 2011.

Yingli to Supply Modules for New Jersey Solar Project

On 18 Aug, Yingli announced that its US subsidiary, Yingli Green Energy Americas, has been selected by Lincoln Renewable Energy (LRE) to deliver 10 MW AC of Yingli Solar modules for its New Jersey Oak Solar PV Power Plant in Fairfield Township, New Jersey. The project is being constructed by Quanta Renewable Energy Services and The Ryan Company under a comprehensive engineering, procurement and construction services agreement with LRE. When completed later this year, the New Jersey Oak Solar project will be the largest non-utility owned solar project east of the Mississippi. The 10 MW solar power plant will utilize 55,000 YGE-235 Series high efficiency, multicrystalline modules, delivering a module efficiency of up to 15 percent.

China Sunergy Signs US$160 mln in Financing, Credit Facilities from CDB

On 17 Aug, China Sunergy announced the signing of US$160 million in financing and credit facilities from China Development Bank (CDB) to help fund its growth. The contracts with CDB were signed by China Sunergy's two domestic subsidiaries, China Sunergy and CEEG Renewable Energy, which was acquired from affiliated company CEEG in November 2010. The facilities include a combination of both long-term and short-term loans. These credit facilities will be used in cell capacity expansion and as working capital.

JA Solar to Supply 21 MW of Solar Products to Huanghe Hydropower

The China solar market should be treated as a collection of separate provincial markets. It can even be broken down into separate municipal markets. When assessing these separate solar markets, closely watch the five major utility companies and their subsidiaries. On 16 Aug, JA Solar announced that it has signed a supply agreement with Huanghe Hydropower. Under the terms of the agreement, the company will supply Huanghe Hydropower with approximately 21 MW of solar products by September 2011.

Huanghe Hydropower is a large-scale integrated energy company owned by China Power Investment (CPI). The company engages mainly in the development of power plants. it is also involved in the production of silicon and solar power equipment. CPI is one of the five major utility companies in China. As I have mentioned in other posts, the others are China Datang Corporation, Guodian, China Huadian Group and China Huaneng Group. CPI has assets in hydropower, thermal power, nuclear power and renewable energy. It is one of the three companies in China that can develop, build and operate nuclear power plants. Clean energy accounts for 30% of the total CPI portfolio, the highest among the five major utility companies.

Ascent Solar Surges on Influx of Asian Capital

Forging China-North America renewable energy cooperation is good for reducing the world's carbon emissions. Creating cross-Pacific solar business ties is also smart from a business point of view. Business leaders, politicians, everyone involved in China-North America energy connections needs to focus on how mutually profitable these solar connections are. Increased sales, better access to funds is a better incentive than "it's good for the planet". The latest example of a North American solar company benefitting from finding an Asian partner is Ascent Solar Technologies. The Colorado-based company is a thin-film panel producer that’s lost 64 percent of its value this year. Yesterday it climbed the most in more than four years after announcing a licensing and equity deal with TFG Radiant Group, a joint venture of the Chinese construction and real estate company Radiant Group and the Singapore-based investment company Tertius Financial Group. The Chinese side is clearly interested in Ascent's manufacturing technology and the deal includes a licensing agreement. In return, Ascent gets an influx of capital and potential sales in the Asian construction industry. Ascent climbed 48 cents, or 65 percent, to $1.21 in Nasdaq Stock Market trading, the company’s biggest gain since March 2007.

PV Polysilicon Output From Chinese Manufacturers Expected To Rise Dramatically

In 2015, the total output of solar silicon from Chinese manufacturers will reach 168,000 tons, 3.5 times more than the output in 2010, according to a new analysis from China-based market research firm CCM. From 2010 to 2015, the compound annual growth rate of China's polysilicon industry is expected to be 28.3%.

Overall, the report says the forecast for China's polysilicon market industry is definitely bright and it will be difficult for a few large producers to monopolize the market. It is still relatively easy for new entrants to seize the market opportunity by using proper competitive strategies, according to CCM.

Dongguan Municipal Government Invests in Guangdong's Second Thin Film Panel Factory

Chinese company Anwell Digital Machinery has secured $110 million capital injection from the Dongguan municipal government for the development of a second thin film solar panel factory in Guangdong. The company is a subsidiary of Anwell Technologies and the provincial government will now take a 19.5 per cent stake in Dongguan Anwell, valuing the company at $563 million. After five years the local government has the option of selling its shares back to Anwell at cost plus interest. Dongguan is in Guangdong's Pearl River Delta.

In addition to this funding the company has recently secured $188 million long term funding for the new manufacturing plant and expansion of its other facility in Anyang, Henan. The capital injection came from the municipal authorities of both cities. Anwell has plans to annually produce panels with a combined capacity of 1.5 GW within five years.

Energy Research Institute says China to Double Solar Capacity by Year End

China will double its solar capacity to around 2 GW by the end of the year as the world's largest solar-panel maker ramps up domestic installation, according to the NDRC's Energy Research Institute. The solar feed-in tariff, the price of solar-generated electricity, could drop below 0.80 yuan (12.5 cents) for each kWh by 2015, which would be on par with conventional coal-fired power tariffs by that time. The report also said China was expected to produce 90,000 tons of polysilicon this year, representing 80 percent of its domestic demand.

The rates, set at 1 yuan for each kWh, were higher than many of those that were proposed and accepted by state-owned solar-power developers in China's previous official tenders, which ranged from 0.73 to 0.99 yuan for each kWh last year. China had about 900 MW of solar power generating capacity at the end of 2010.

Canadian Solar Improves Product and Performance Warranties

Improvements to both product and performance warranties have been made to Canadian Solar’s PV module series. Effective August 1, 2011, Canadian Solar's warranty now provides a linear performance guarantee for power output over a 25-year period as well as having a product warranty covering workmanship and material defects to 10 years.

Canadian Solar expects that the actual power output of its modules would be no less than 97% of the labelled power output during the first year of operation, but declining by no more than 0.7% annually. Over a 25-year period, actual power output is expected to be no less than 80% of the labelled power output.

The company also noted that the enhanced warranties were to remain backed by a 25-year, non-cancellable insurance policy issued by A.M. Best rated, investment grade insurance underwriters.

Evergreen Solar Announces Filing Chapter 11

Evergreen Solar said Monday it has filed for Chapter 11 bankruptcy protection and will cut its US and European staff by 65. The company is continuing to shift from its solar panel business to becoming a supplier of solar wafers. The Marlborough, MA-based solar power technologies firm said it plans to sell its assets but did not say how much it owes to creditors. The assets are expected to be “insufficient to satisfy all its obligations to its creditors,” Evergreen Solar said. The bankruptcy filing was not immediately available.

There was no word on whether Evergreen Solar would cut staff at its Wuhan plant.

China's Solar Market needs both Feed-in Tariff and Grid Infrastructure

The debate continues on the effect of the NDRC's 24 July document announcing a nation-wide PV Feed-in Tariff. As is frustratingly often the case in China official documents, it provides few details. Even basic info like subsidy period, regional rates, favored installation methods are left a mystery. So, the nation-wide FiT is turning out to be a Rorschach test for China solar analysts. If you are predisposed to think China is not only serious about creating a robust domestic solar market but has the means to achieve it, there is much to be optimistic about with this NDRC announcement. There is already a robust PV supply chain and this announcement is clearly a confidence-builder. If you think as long as coal is so inexpensive China will never be serious about renewable energy at home, you can point to the the lack of specifics as well as China's difficulty in implementing cohesive nation-wide energy policy.

I am in the middle. I think the NDRC announcement shows a serious effort by Beijing to develop a domestic solar market. Even with cheap coal, China wants to be the consumer of all of those PV modules it manufacturers. It also seriously wants to introduce CSP projects into its energy mix and advance its solar technological prowess. No question China is serious about domestic solar. However, China needs two things to develop a solar market: 1) a nation-wide FiT; 2) an adequate transmission infrastructure to get this solar generated electricity to the grid. Even if the implementation is spotty, the 24 July NDRC document is a huge step in the right direction for one of the prerequisites. I am far less optimistic about the second, especially out in the West.

Problems in Ontario's Solar Market

I have always been a big fan of Ontario's renewable energy policy. One of the solar companies I look at most closely, Canadian Solar, has a manufacturing plant in Guelph with two out of three lines already active. So, I was a little surprised by Reneta D'Alieso's Globe and Mail article that came out this week: http://www.theglobeandmail.com/news/national/ontario/in-ontario-gloomy-skies-for-solar-power/article2125904/

The article has caused quite a buzz. The debate that Reneta has sparked has been healthy. I need to look more closely at Ontario's renewable policy before I jump in. The interesting, challenging thing about watching the North American solar market is you have to treat each state/province separately. It's like analytical juggling. For a stretch of time, I will be watching the California or New Jersey solar market and then realize that major changes are going on in Ontario without me noticing. That's the value of twitter. Renata's article comes out and social media lights up with people's responses. Watch this space for much more on Ontario's renewable energy policy. I have always thought of the province as the Germany of North America. That is still the case but the Globe and Mail article brings up good points.

Speaking of Canadian Solar, they announced this week they will supply 8 MW of solar modules to EOSOL Energies Nouvelles' new ground-mounted solar power plant which will have an installed capacity of 10.7 MW. The new solar power plant will be built in Saint-Leger in the south west of France with a total of 39,500 modules. The new solar power plant is expected to be activated in October 2011.

Yingli Sponsoring US Soccer

On 10 Aug, Yingli and US Soccer today announced a multi-year agreement that establishes Yingli as the first Official Renewable Energy Partner of US Soccer and sponsor of the US Men's, Women's and Youth National Teams through the end of 2014. During the next four years, Yingli will support US Soccer's ongoing efforts to develop the game at all levels. The partnership will launch during tonight's US Men's National Team match versus Mexico at Lincoln Financial Field in Philadelphia.

Yingli started sponsoring international soccer/football when they were a sponsor for the FIFA South Africa World Cup in 2010. They will also support the Brazil FIFA World Cup in 2014.

Yingli also sponsors the Bayern Munich football club. They aren't the only Chinese PV company involved in German football. On 9 Aug, 1899 Hoffenheim players had Suntech logos on their jerseys for their opening game in the Bundesliga. JinkoSolar in July announced a three-year deal to place ads next to the playing field at Bayer Leverkusen’s stadium. Shanghai Chaori Solar Energy Science & Technology in June agreed with Schalke, which stars record Champions League goalscorer Raul Gonzalez, to advertise at games and have players endorse their products.

LDK Solar, Datang to Develop 20 MW Qinghai Solar Project

Qinghai's solar market gets more and more interesting. On 10 Aug, LDK Solar announced that it has signed an engineering, procurement, and construction (EPC) agreement with Datang International Power Generation to develop a 20 MW solar project in Qinghai. Construction of the first 10 MW will commence this month and the project is expected to be completed at the end of September 2011.

Investors.com also reported on 9 Aug that the Qinghai's Qaidam Basin has become one of top ongoing and completed solar PV power bases in China with 5 of its 33 planned solar power stations having been connected to grids and generated 56MW of power.

Trina to Supply Modules for Qinghai Solar Project

Watching the China solar market is not only challenging because of how disjointed it is in terms of subsidies, transmission infrastructure, favorable land deals and other factors that give a place potential for renewable energy growth but how hard it is to guess which provinces, municipalities will be solar friendly. Of course, you have Jiangsu, the home of Suntech and key Chinese PV companies. The province has been an aggressive solar proponent for nearly a decade. No surprise that the leadership would make renewable energy a top priority. Shaanxi isn't surprising because Xi'an has always been a major center for science, R&D, engineering. Most of it has been connected to the aerospace industry but still, no stretch imaging that Shaanxi would be a good place for Applied Materials to set up their research center. But Ordos, Inner Mongolia? Sure, you have sun but lots of western Chinese locations are sunny. As far as I gather, most of the reason Ordos is aggressively pushing solar is the strength of personalities in the municipal government. I haven't heard lately how the First Solar utility-level PV plant is doing in Ordos but it seems set up well to continue, even if not according to the originally released timeline. I will look into the current status of that project and post an update here when I find out the news.

All of this leads me to Qinghai. Hate to admit it, but I know very little about the province. From my years living in China, I have a vague, probably unfair image of a dusty, poor province. But its solar industry seems to be solid and growing. On 4 Aug, Trina announced that its subsidiary, Changzhou Trina Solar Energy, has signed supply agreements with Huanghe Hydropower Development, a subsidiary of China Power Investment Corporation, for two ground-mounted Qinhai solar projects for a total of 30 MW PV modules.

Trina Solar will supply approximately 20 MW of PV modules for the Golmud project. Here is the wikipedia link for Golmud: http://en.wikipedia.org/wiki/Golmud. Delivery commenced in June and is expected to extend through August of this year. Trina is also expected to supply approximately 10 MW for the Henan, of which delivery is expected to start from August and continue through October of this year. I can't find Henan on the map and couldn't add any insight if I could. I am very curious about Qinghai and will try to find reports on the province. For starters, here is Qinghai's wikipedia entry: http://en.wikipedia.org/wiki/Qinghai. Watch this space for more on the emerging Qinghai solar market.

China's Nation-wide Feed-in Tariff

One of the biggest obstacles for foreign solar companies forging joint ventures on utility-level projects has been the disjointed nature of China's renewable energy subsidies. Provinces and even municipalities have their own feed-in tariffs and other incentives. I have talked to several foreign solar professionals who are waiting for two things to happen before getting serious about several projects: 1) better transmission infrastructure; 2) a nation-wide feed-in tariff.

It looks like number two is happening. Though reports vary and details need to be worked out, it seems certain the new NDRC-dictated nation-wide feed-in tariff sets an on-grid solar power price of RMB1.15/kWh (about $0.18/kWh) for projects approved before 1 July and completed by year's end. RMB1.0/kWh (~$0.16/kWh) for projects approved after 1 July and projects not completed in 2011. These do not apply to projects covered by the Golden Sun program, nor to any projects under competitive bidding. Funding is provided by the Renewable Energy Development Fund.

Of course, there are other obstacles to China developing a strong solar market and nation-wide policy implementation is always tricky in China. There is reason to be skeptical that the provincial NDRC's, financial institutions will carry out the feed-in tariff as well as the federal NDRC is envisioning. However, at the very least, this an indication of a sincere desire to develop a domestic solar market. I still run across the argument, usually from the right, that China is simply interested in exploiting the world's overreaction to global warming by selling PV modules and that, while coal remains so cheap, has no desire to become a consumer of its own solar panels. The NDRC's announcement of this feed-in tariff is one of many pieces of evidence that Beijing is serious about creating a domestic cleantech demand.

LDK Solar to provide 14.1 MW to New Jersey Project

LDK Solar has announced on 2 Aug that it will supply Advanced Solar Products, New Jersey, with 58,803 modules for a privately owned, net metered solar project. The project worth 14.1 MW has been initiated by the McGraw-Hill Companies in East Windsor, New Jersey.

The McGraw-Hill project was announced in June and is on land adjacent to the privately owned corporation’s office buildings in the town. The plant is expected to be fully completed by March 2012 and will, in part, supply its 180,000 square foot data center, the central hub of its computer operations. It is expected to reduce the corporation’s greenhouse emissions by ten percent. The photovoltaic modules will be delivered by November 2011.

Advanced Solar Products will install the modules, using its Solstice Mounting System. The mounting system and McGraw-Hill project have both qualified for New Jersey’s Renewable Energy Manufacturing Incentives. The project is a joint venture between McGraw-Hill and NJR Clean Energy Ventures, which will provide $60 million towards the project.