Finding the right domestic partner is the key to success for an American or a Canadian company in the China solar market. These relationships can also bring benefits outside of Asia. Duke Energy is finding that thanks to its relationships with ENN Solar and the China Huaneng Group, it has new access to lines of credit from Chinese lenders.
The Wall Street Journal is reporting today that Duke Energy and Progress Energy secured fresh lines of credit that includes Chinese lenders. The two utilities jointly arranged $6 billion in financing ahead of the expected completion of Duke's acquisition of Progress in an all-stock deal valued at about $13.7 billion. The merger, which requires the approval of federal and state regulators, would create the United States's largest utility and could close by the end of the year.
I have written about how Duke Energy has been particularly good at forging strong partnerships with Chinese companies. The company has a particularly strong relationship with ENN Solar. There has been talk between the two of cooperating on solar projects in North Carolina and Nevada. None of these projects have advanced for a variety or reasons but this line of credit is one example of how these partnerships can still be beneficial in less direct ways. Without Duke's Chinese connections, the Chinese banks would not have lent the money.
The new lines of credit replaces existing credit facilities that expire in 2012. Ten banks each agreed to provide $305.5 million in credit, including the Chinese government-owned Bank of China and Industrial & Commercial Bank of China, according to an 8-K that Duke filed with the Securities and Exchange Commission late Friday. China Merchants Bank is among seven banks that each agreed to provide $65 million in credit.
Together, the three Chinese lenders are behind 11% of the joint credit facility. The inclusion of the Chinese lenders comes as that China's banks, which include some of the world's largest, look to expand overseas.
Tuesday, November 29, 2011
Monday, November 28, 2011
Astronergy Providing Modules for Tennessee Solar Projects
The Chinese company, Astronergy (also known as Chint Solar), a subsidiary of Chint Group has been selected to provide approximately 12,700 modules for use in several utility scale projects in Tennessee. The first four of these projects, which were 750kw ground mounted systems, were commissioned at the beginning of Nov 2011 in Fayetteville, Tennessee.
The yearly 4.23GWh capable energy produced by the four systems is more than enough to support over 350 homes annually. The system's solar energy will be purchased by the Tennessee Valley Authority (TVA) through its Generation Partners Program. This is just four of many other projects that Astronergy panels have been specified which will execute in Tennessee in 2012.
The yearly 4.23GWh capable energy produced by the four systems is more than enough to support over 350 homes annually. The system's solar energy will be purchased by the Tennessee Valley Authority (TVA) through its Generation Partners Program. This is just four of many other projects that Astronergy panels have been specified which will execute in Tennessee in 2012.
ET Solar has Completed German 5MW PV Power Plant
Last week the Chinese company ET Solar announces completion and grid connection of a 5MW PV power plant 150 kilometers west of Berlin. ET Solar acted as both solar module supplier and EPC contractor for the project.
The ground mounted PV power plant is code named Boerde West. ET Solar's subsidiary, ET Solutions AG, performed full Engineering, Procurement and Construction (EPC) tasks and ET Solar's manufacturing subsidiary in China provided solar modules. This is the fourth and the largest ground mounted PV power plant that ET Solar delivered, on turnkey basis, to Wattner AG ("Wattner") in Germany since 2009.
The ground mounted PV power plant is code named Boerde West. ET Solar's subsidiary, ET Solutions AG, performed full Engineering, Procurement and Construction (EPC) tasks and ET Solar's manufacturing subsidiary in China provided solar modules. This is the fourth and the largest ground mounted PV power plant that ET Solar delivered, on turnkey basis, to Wattner AG ("Wattner") in Germany since 2009.
Wednesday, November 23, 2011
China PV installations to surpass US, Japan markets in 2011, says Solarbuzz
Solarbuzz is forecasting the Asia Pacific region PV market will grow 39% on quarter and 130% on year in fourth-quarter 2011. Fourth-quarter 2011 installations of more than 2GW of PV capacity are expected.
China's National Energy Administration (NEA) recently revised its official cumulative solar installation target up from 10-15 GW for 2015. China is projected to account for 45% of regional demand in fourth-quarter 2011 and is on course to surpass both the US and Japanese market sizes in 2011.
Financing, land use, and regulatory issues are a significant barrier to large-scale projects in China. Transmission infrastructure, or the lack of one, is also a serious problem in most parts of the country.
There is also the complicated political landscape of China that can be a problem in the implementation of Beijing's energy policy. Solarbuzz tends to be more optimistic than me about the effect of China's nation-wide feed-in tariff announced by the National Development and Reform Commission in August 2011. I tend to be more skeptical that the FiT will lead to grid-connected electricity from solar projects in the majority fo the country.
Solarbuzz's analysis, however, is consistently reliable, reasonable and well-informed. I think they are generally on target on with their prediction and their study acknowledges the obstacles in China developing a robust domestic solar market.
China's National Energy Administration (NEA) recently revised its official cumulative solar installation target up from 10-15 GW for 2015. China is projected to account for 45% of regional demand in fourth-quarter 2011 and is on course to surpass both the US and Japanese market sizes in 2011.
Financing, land use, and regulatory issues are a significant barrier to large-scale projects in China. Transmission infrastructure, or the lack of one, is also a serious problem in most parts of the country.
There is also the complicated political landscape of China that can be a problem in the implementation of Beijing's energy policy. Solarbuzz tends to be more optimistic than me about the effect of China's nation-wide feed-in tariff announced by the National Development and Reform Commission in August 2011. I tend to be more skeptical that the FiT will lead to grid-connected electricity from solar projects in the majority fo the country.
Solarbuzz's analysis, however, is consistently reliable, reasonable and well-informed. I think they are generally on target on with their prediction and their study acknowledges the obstacles in China developing a robust domestic solar market.
Friday, November 18, 2011
GCL-Poly, China Guangdong Nuclear Power Group Subsidiary to Jointly Develop Shanxi Solar Project
GCL-Poly has signed an agreement with CGN Solar Energy Development, a subsidiary of China Guangdong Nuclear Power Group, to jointly develop a solar farm project with an aggregate capacity of 1GW in Datong City, Shanxi.
GCL-Poly recently signed a five-year letter of intent to supply 1GW of wafers to PV cell manufacturer Tainergy Tech, based in Taiwan. As part of the agreement the two companies will cooperate on the purchase of raw materials and subcontracting for solar projects.
In October, the company formally launched a solar system integration business and is now looking to work with financial institutions to increase its offering. GCL-Poly said it will aim to produce more new products by strengthening its research and development and through cooperations with financial institutions.
GCL-Poly recently signed a five-year letter of intent to supply 1GW of wafers to PV cell manufacturer Tainergy Tech, based in Taiwan. As part of the agreement the two companies will cooperate on the purchase of raw materials and subcontracting for solar projects.
In October, the company formally launched a solar system integration business and is now looking to work with financial institutions to increase its offering. GCL-Poly said it will aim to produce more new products by strengthening its research and development and through cooperations with financial institutions.
Northland Power to use MEMC Singapore PV Modules for Ontario Projects
Northland Power announced announced this week it has signed an agreement with MEMC Singapore, to buy PV modules for its 130MW ground-mounted solar projects in Newmarket, Ontario. The solar PV modules will be manufactured by MEMC Singapore in Canada.
Northland will spend about $600m to develop the solar projects in Ontario. Earlier this year, MEMC started manufacturing solar PV panels in Ontario for SunEdison, its solar energy subsidiary, in order to help the company meet the 60% domestic content requirements of the feed in tariff program.
Northland will spend about $600m to develop the solar projects in Ontario. Earlier this year, MEMC started manufacturing solar PV panels in Ontario for SunEdison, its solar energy subsidiary, in order to help the company meet the 60% domestic content requirements of the feed in tariff program.
JinkoSolar to Power 14 MW in Solar Installations in the United Kingdom
JinkoSolar was selected as the preferred module provider for a partnership between AEE Renewables plc and EPC Graess Solartechnik for three solar projects across the United Kingdom. In total, the systems will produce approximately 12,500,000 kWh of power annually.
AEE Renewables plc, an international, integrated project developer of photovoltaic and hydro power energy systems, specifically chose JinkoSolar after the company's products passed AEE engineers' stringent standards for internal quality control, bankability and strength of investors.
The 4MW solar installation at Beechgrove Farm located near the village of Hawkchurch and a 5MW solar farm in South Marston located near the town of Swindon were completed in early October. An additional 5 MW project is planned to be finalized in early 2012.
AEE Renewables plc, an international, integrated project developer of photovoltaic and hydro power energy systems, specifically chose JinkoSolar after the company's products passed AEE engineers' stringent standards for internal quality control, bankability and strength of investors.
The 4MW solar installation at Beechgrove Farm located near the village of Hawkchurch and a 5MW solar farm in South Marston located near the town of Swindon were completed in early October. An additional 5 MW project is planned to be finalized in early 2012.
Tuesday, November 15, 2011
China to add over 2.0 GW solar power capacity in 2011
China's solar capacity may quadruple from last year to more than 2.0 GW this year. On 11 Nov 11, Li Junfeng, Deputy Director-General of the NDRC's New Energy Intitute, told the China Enterprise Summit Forum that China's total solar power capacity could reach around 3.0 GW by the end of this year.
The government has raised its installed solar capacity target for 2020 to 50 GW, up from the previous goal of 20 GW, China state media has quoted Li as saying.
The government has raised its installed solar capacity target for 2020 to 50 GW, up from the previous goal of 20 GW, China state media has quoted Li as saying.
LDK Cuts Sales Forecast, Writing Down $50 Million in Inventory
Bloomberg reported on 14 Nov 11 that LDK Solar cut its sales forecast and will write down $45 million to $50 million in inventory, citing “rapidly declining market price.”
The company expects to report sales of $460 million to $470 million in the third quarter, compared with an earlier forecast of $630 million to $680 million, the Xinyu-based company said today in a statement. Gross margin will be between negative 3.5 percent and 5 percent, compared with the previous forecast of 11 percent to 16 percent.
The company expects to report sales of $460 million to $470 million in the third quarter, compared with an earlier forecast of $630 million to $680 million, the Xinyu-based company said today in a statement. Gross margin will be between negative 3.5 percent and 5 percent, compared with the previous forecast of 11 percent to 16 percent.
JinkoSolar, Dago Give Weak Shipment Outlooks
On 14 Nov 11, Reuters reported JinkoSolar and Daqo New Energy gave weak shipment outlooks, as the solar sector struggles with weak demand and declining selling prices.
JinkoSolar shares, which have shed almost two-thirds of their value this year, were trading down 13 percent at $6.89 on 14 Nov 11 morning on the New York Stock Exchange. Daqo shares fell 4 percent to $2.71.
Yingli and ReneSola had cut their shipment and profit margin forecasts last week.
Shanghai-based JinkoSolar forecast quarterly module shipments at 210-220 MW, down from its previous outlook of 230-250 MW. JinkoSolar expects revenue at $270-$280 million, compared with its previous forecast of $310-$330 million.
JinkoSolar shares, which have shed almost two-thirds of their value this year, were trading down 13 percent at $6.89 on 14 Nov 11 morning on the New York Stock Exchange. Daqo shares fell 4 percent to $2.71.
Yingli and ReneSola had cut their shipment and profit margin forecasts last week.
Shanghai-based JinkoSolar forecast quarterly module shipments at 210-220 MW, down from its previous outlook of 230-250 MW. JinkoSolar expects revenue at $270-$280 million, compared with its previous forecast of $310-$330 million.
GCL-Poly Plans to Boost Polysilicon Capacity Amid Oversupply
Bloomberg is reporting GCL-Poly plans to sell 1.5 billion yuan ($236 million) of 7.05 percent notes due in 2018. This production capacity increase is in response to the the global polysilicon surplus.
The company started selling the bonds on 14 Nov 11 to institutional investors through its Jiangsu Zhongneng unit. It will list the issue on Shanghai’s stock exchange, according to a Hong Kong stock exchange filing on 13 Nov. The interest rate can be reset higher after five years, GCL-Poly said.
The expansion comes as customers increasingly demand lower prices for polysilicon, driven by oversupply. GCL-Poly and LDK Solar are both raising capacity even though prices are dropping. As I have written before, the goal is grab market share as smaller companies are driven out of the business.
The company started selling the bonds on 14 Nov 11 to institutional investors through its Jiangsu Zhongneng unit. It will list the issue on Shanghai’s stock exchange, according to a Hong Kong stock exchange filing on 13 Nov. The interest rate can be reset higher after five years, GCL-Poly said.
The expansion comes as customers increasingly demand lower prices for polysilicon, driven by oversupply. GCL-Poly and LDK Solar are both raising capacity even though prices are dropping. As I have written before, the goal is grab market share as smaller companies are driven out of the business.
Sunday, November 6, 2011
Polysilicon Drop May Stop Output From 90% of China’s Factories
Bloomberg is quoting analyst Xie Chen in a report to the China Nonferrous Metals Industrial Association as saying China’s polysilicon factories may suspend output in November 2011 because of a slump in prices.
GCL-Poly and LDK Solar have suffered as the commodity fell 21 percent in the past month to an eight-year low of $34.51 per kilogram, according to Bloomberg New Energy Finance data.
LDK and GCL-Poly, seeing an opportunity to drive out smaller competitors, are boosting production. Last week LDK announced plans to triple its capacity and make 55,000 metric tons of polysilicon a year by 2014. GCL-Poly said in March it would more than double polysilicon capacity to 46,000 metric tons this year.
Polysilicon production in China rose as much as 60 percent so far this year compared with the same period a year ago, while output of solar panels that use the material increased at only one-third of that rate, Xie said.
Spot price of polysilicon in China and Taiwan has fallen below US$30/kg, according to Chihheng Liang, an analyst of Digitimes Research. While international polysilicon suppliers are still sticking to US$30/kg, available polysilicon in China and Taiwan now falls between US$25-30/kg. The percentage of polysilicon at the US$28-29 price range is the largest percentage.
GCL-Poly and LDK Solar have suffered as the commodity fell 21 percent in the past month to an eight-year low of $34.51 per kilogram, according to Bloomberg New Energy Finance data.
LDK and GCL-Poly, seeing an opportunity to drive out smaller competitors, are boosting production. Last week LDK announced plans to triple its capacity and make 55,000 metric tons of polysilicon a year by 2014. GCL-Poly said in March it would more than double polysilicon capacity to 46,000 metric tons this year.
Polysilicon production in China rose as much as 60 percent so far this year compared with the same period a year ago, while output of solar panels that use the material increased at only one-third of that rate, Xie said.
Spot price of polysilicon in China and Taiwan has fallen below US$30/kg, according to Chihheng Liang, an analyst of Digitimes Research. While international polysilicon suppliers are still sticking to US$30/kg, available polysilicon in China and Taiwan now falls between US$25-30/kg. The percentage of polysilicon at the US$28-29 price range is the largest percentage.
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