This announcement came out in mid-Sept but I still want to mention it here as another example of international business taking China's domestic solar market more seriously. United States cleantech private equity fund Hudson Clean Energy Partners announced on 13 Sept that it aims to raise its first yuan-denominated fund, the largest of its kind, to invest in China's rapidly expanding clean energy market. Hudson, which manages a $1 billion clean tech equity fund in the United States, is bullish on China's clean energy markets. According to their press release, the company expects urbanization, rising pollution and a tremendous hunger for energy to drive demand for clean energy.
"We view China as the world's most important market in clean energy, witnessing a continuation of a boom that began five years ago and look set to continue well into the future," Hudson co-managing partner Neil Auerbach told Reuters. Interesting that there is no mention of the August nation-wide FiT announcement.
Hudson, which invests exclusively in clean energy, is setting up its China fund with the municipal government of Yangzhou, Jiangsu.
Sunday, September 25, 2011
TUV Rheinland, CGCC to Assist International Solar Manufacturers Seeking Access to China Market
This week I found another indication that the international solar industry is taking China's domestic market more seriously. Market access and testing company TUV Rheinland announced it has partnered with the China General Certificate Center (CGC) to provide testing and accreditation services for solar manufacturers looking to gain access to the Chinese market. The collaboration includes agreements with four TUV units, which are part one of the largest solar energy testing and certification providers in the world.
I have said before that the nation-wide FiT announced by the NDRC in August is a step in the right direction but ultimately the press release doesn't count for much. First of all, as is often the case with these types of announcements from the Chinese government there were no details on how the FiT would be implemented. Many local level governments, both provincial and municipal, currently offer FiT's and other subsidies. How will this NDRC nation-wide FiT supersede the already existing ones? This is one of many questions about how the August announced FiT will become reality. I get the feeling there is no serious plan to create a nation-wide FiT. Too many times I have seen these types of announcements not only come to nothing but we find out later there never was a serious intention. It would be fascinating to find out the behind-the-scenes story. Which personalities in the NDRC pushed this? Who fought against it? Was there a solar patron saint from the CCP Central Committee?
Then, even if there is a serious attempt to implement the August announced FiT, it's not much use without the transmission infrastructure to get the utility-level solar projects grid connected.
Having said all this, however, it is amazing how perception, no matter how flimsily based, can drive business. TUV Rheinland and CGCC both think there will be enough world PV manufacturers hoping to get into the China solar market. Often I see journalists say China is planning to double its capacity to 2 GW by the end of the year and has introduced a nation-wide FiT as a means to prove the domestic solar market is booming. Maybe China announced the solar capacity goal and the FiT knowing the majority of journalists and even business leaders would uncritically accept as fact that China's solar market is on the rise. If the international solar industry collectively accepts that China is serious about developing its solar market, deals are made and business does end up booming.
I have said before that the nation-wide FiT announced by the NDRC in August is a step in the right direction but ultimately the press release doesn't count for much. First of all, as is often the case with these types of announcements from the Chinese government there were no details on how the FiT would be implemented. Many local level governments, both provincial and municipal, currently offer FiT's and other subsidies. How will this NDRC nation-wide FiT supersede the already existing ones? This is one of many questions about how the August announced FiT will become reality. I get the feeling there is no serious plan to create a nation-wide FiT. Too many times I have seen these types of announcements not only come to nothing but we find out later there never was a serious intention. It would be fascinating to find out the behind-the-scenes story. Which personalities in the NDRC pushed this? Who fought against it? Was there a solar patron saint from the CCP Central Committee?
Then, even if there is a serious attempt to implement the August announced FiT, it's not much use without the transmission infrastructure to get the utility-level solar projects grid connected.
Having said all this, however, it is amazing how perception, no matter how flimsily based, can drive business. TUV Rheinland and CGCC both think there will be enough world PV manufacturers hoping to get into the China solar market. Often I see journalists say China is planning to double its capacity to 2 GW by the end of the year and has introduced a nation-wide FiT as a means to prove the domestic solar market is booming. Maybe China announced the solar capacity goal and the FiT knowing the majority of journalists and even business leaders would uncritically accept as fact that China's solar market is on the rise. If the international solar industry collectively accepts that China is serious about developing its solar market, deals are made and business does end up booming.
Friday, September 23, 2011
US Solar Manufacturers Need To Innovate Technology to Compete With China
In 2006, there were two Chinese PV companies on the list of the world's top ten cell producers. According to Bloomberg New Energy Finance, in 2010 there are only two non-Asian manufacturers on that list. Those companies, First Solar and Q-cells, have Asian manufacturing operations. First Solar recently opened a PV panel plant in Vietnam and Q-cells has a Malaysian facility.
With Solyndra's failure, there has been much debate over why US solar manufacturers are failing. I have written about my discussions with Evergreen Solar management around the time of their decision to move their Devens plant to Wuhan. Three factors influenced Evergreen Solar's decision to move their manufacturing to China: cheaper land, cheaper labor and more generous subsidies.
To get a more accurate picture of why Evergreen Solar and Solyndra failed, you also have to consider mismanagement and bad decisions. Other US solar companies have adjusted to manufacturing, price realities. Applied Materials stopped producing its thin film product when the analysis showed it wouldn't be profitable in the long run.
However, yes, there is more government support for solar manufacturing in China. But let's be specific about the disparity. I have yet to do a detailed comparison of what Massachusetts offered Evergreen Solar in terms of benefits and those offered by the Wuhan municipal government, Hubei provincial government, the loans provided by the China Development Bank (CDB). It strikes me that people are, at best, lazy in emphasizing China's generous benefits and, at worse, deliberately deceptive when talking about China's 'predatory financing' and 'not playing nice.'
There has been talk specifically about the support the CDB gives Chinese PV manufacturers. In 2010, the bank handed out $30 bln in low-cost loans to the top five manufacturers. This has enabled China’s solar producers to grow to GW-scale in a very short period of time.
The solar panel dumping allegations have been floating around since 2009 but no solid case has been made.
To make US-China solar trade issues even more complicated, the United States is a net exporter of solar products to the China. In the same SEIA, GTM study I mentioned recently showing New Jersey as number one in commercial solar, the US had a $247 million solar trade surplus with China in 2010, mostly because of polysilicon and equipment shipments.
So how should the US solar manufacturers respond? Of course, you can start all of the dumping investigations you like but you still have to deal with the issue of scale. The best response to Chinese competition is to improve the technology in the PV manufacturing process.
The strength of US industry has always been innovation. The Chinese companies know it. That's why Applied Materials is so successful in selling its manufacturing equipment to the Chinese module and cell manufacturers. First Solar has record-breaking efficiency with its thin film technology. That's why the company is in the top ten and whether it has a Vietnamese manufacturing facility is besides the point.
With Solyndra's failure, there has been much debate over why US solar manufacturers are failing. I have written about my discussions with Evergreen Solar management around the time of their decision to move their Devens plant to Wuhan. Three factors influenced Evergreen Solar's decision to move their manufacturing to China: cheaper land, cheaper labor and more generous subsidies.
To get a more accurate picture of why Evergreen Solar and Solyndra failed, you also have to consider mismanagement and bad decisions. Other US solar companies have adjusted to manufacturing, price realities. Applied Materials stopped producing its thin film product when the analysis showed it wouldn't be profitable in the long run.
However, yes, there is more government support for solar manufacturing in China. But let's be specific about the disparity. I have yet to do a detailed comparison of what Massachusetts offered Evergreen Solar in terms of benefits and those offered by the Wuhan municipal government, Hubei provincial government, the loans provided by the China Development Bank (CDB). It strikes me that people are, at best, lazy in emphasizing China's generous benefits and, at worse, deliberately deceptive when talking about China's 'predatory financing' and 'not playing nice.'
There has been talk specifically about the support the CDB gives Chinese PV manufacturers. In 2010, the bank handed out $30 bln in low-cost loans to the top five manufacturers. This has enabled China’s solar producers to grow to GW-scale in a very short period of time.
The solar panel dumping allegations have been floating around since 2009 but no solid case has been made.
To make US-China solar trade issues even more complicated, the United States is a net exporter of solar products to the China. In the same SEIA, GTM study I mentioned recently showing New Jersey as number one in commercial solar, the US had a $247 million solar trade surplus with China in 2010, mostly because of polysilicon and equipment shipments.
So how should the US solar manufacturers respond? Of course, you can start all of the dumping investigations you like but you still have to deal with the issue of scale. The best response to Chinese competition is to improve the technology in the PV manufacturing process.
The strength of US industry has always been innovation. The Chinese companies know it. That's why Applied Materials is so successful in selling its manufacturing equipment to the Chinese module and cell manufacturers. First Solar has record-breaking efficiency with its thin film technology. That's why the company is in the top ten and whether it has a Vietnamese manufacturing facility is besides the point.
Thursday, September 22, 2011
China Solar PV Companies: Look to New Jersey to Boost North America Business
Savvy China Solar PV businesses have already had the New Jersey solar market on their radar screens. It is no secret the state's commercial solar market has been second only to California in the US over the last couple of years. Earlier this week, the SEIA, GTM Research report made it official; the Garden State has replaced California as the US number one US commercial solar market.
According to the report, New Jersey's PV installations now account for 24% of all those in the U.S. -- up from 15% at the end of March. Now especially, China solar PV companies should extend their North American business development trips by swinging down to the Garden State if NJ isn't already on the itinerary.
I will be paying particular attention to China PV companies inking lucrative deals in New Jersey. First on the list is Canadian Solar. On Thursday 22 Sep, the company announced it has been awarded a contract to provide solar panels for a new 2.1MW solar power installation at St Peter's University Hospital in New Brunswick, New Jersey.
The project is scheduled to begin construction in October, 2011. The hospital will invest US$9 million in the project. Comprised of nearly 10,000 Canadian Solar 6P 240P solar panels, the installation will produce roughly 2.3 mln kWh per year. The installation will consist of six separate solar arrays: two rooftop arrays, three parking lot solar canopies and a further solar canopy on the top deck of a multi-floor parking structure.
According to the report, New Jersey's PV installations now account for 24% of all those in the U.S. -- up from 15% at the end of March. Now especially, China solar PV companies should extend their North American business development trips by swinging down to the Garden State if NJ isn't already on the itinerary.
I will be paying particular attention to China PV companies inking lucrative deals in New Jersey. First on the list is Canadian Solar. On Thursday 22 Sep, the company announced it has been awarded a contract to provide solar panels for a new 2.1MW solar power installation at St Peter's University Hospital in New Brunswick, New Jersey.
The project is scheduled to begin construction in October, 2011. The hospital will invest US$9 million in the project. Comprised of nearly 10,000 Canadian Solar 6P 240P solar panels, the installation will produce roughly 2.3 mln kWh per year. The installation will consist of six separate solar arrays: two rooftop arrays, three parking lot solar canopies and a further solar canopy on the top deck of a multi-floor parking structure.
Wednesday, September 21, 2011
Chaori Solar Plans on Expanding Europe Business
Shanghai Chaori Solar Energy Science and Technology, a producer of single crystal silicon solar batteries, plans to inject 60 million euros into its Hong Kong subsidiary for its European expansion, reports China Business News, citing a company filing on 21 Sept. The Hong Kong subsidiary was established earlier this year with a registered capital of 28 million euros. Chaori Hong Kong had as of end August established two overseas subsidiaries in Luxemburg and in Delaware.
Of the 60 million euros, seven million euros will be further injected into Chaori Sky Solar Energy, 12.2 million euros will be injected into Chaori Solar USA and 40.8 million euros will be used to set up a joint venture, CS Solar Project International.Chaori Solar will hold a 51 percent stake in the joint venture, which will have a registered capital of 80 million euros.
Chaori Solar's partner in the joint venture, China Solar Gmbh, is a German registered company specializing in the construction of power stations.Through the end of the first half, China Solar had purchased more than 400MW of equipment components from China since 2004. It currently owns interests in 40MW of power generation facilities and has another 50MW of power generation facilities under construction.The facilities are mainly located in Germany and in other E.U. countries. China Solar has another 1,000MW of solar power station programs on hand.
According to Chaori Solar, though the long-term prospects of the photovoltaic industry are good, there are short-term fluctuations in the prices of solar modules due mainly to changes in government policies. The company has thus decided to diversify into the building of solar power stations. Shares of Chaori Solar were up 2.34 percent to trade at 18.39 yuan at 10:36 today.
Of the 60 million euros, seven million euros will be further injected into Chaori Sky Solar Energy, 12.2 million euros will be injected into Chaori Solar USA and 40.8 million euros will be used to set up a joint venture, CS Solar Project International.Chaori Solar will hold a 51 percent stake in the joint venture, which will have a registered capital of 80 million euros.
Chaori Solar's partner in the joint venture, China Solar Gmbh, is a German registered company specializing in the construction of power stations.Through the end of the first half, China Solar had purchased more than 400MW of equipment components from China since 2004. It currently owns interests in 40MW of power generation facilities and has another 50MW of power generation facilities under construction.The facilities are mainly located in Germany and in other E.U. countries. China Solar has another 1,000MW of solar power station programs on hand.
According to Chaori Solar, though the long-term prospects of the photovoltaic industry are good, there are short-term fluctuations in the prices of solar modules due mainly to changes in government policies. The company has thus decided to diversify into the building of solar power stations. Shares of Chaori Solar were up 2.34 percent to trade at 18.39 yuan at 10:36 today.
Inner Mongolia's Eerduosi Company sets up PV material unit
Inner Mongolia is an interesting province for solar. It has one of the most interesting solar projects in China - the Ordos First Solar joint venture utility-scale PV project. On 21 Sept, Inner Mongolia's Eerduosi Resourses Co Ltd (SHA:600295) announced it has allocated USD 15.7m for its new PV material unit. The new subsidiary will make and sell various PV products including solar panels. The unit's planned annual capacity will be 500 MW of polycrystalline silicon ingot slices and modules and 500 MW of monocrystalline silicon stretch and modules.
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