Liu Qi, deputy minister and administrator of
the National Energy Administration - China
Bloomberg (link) has reported, Liu Qi, Chinese deputy minister and deputy administrator of
the National Energy Administration, said that Solar PV
installations in China may reach 31GW of capacity as early as 2015.
Liu also added at a conference in Abu Dabhi, that the Chinese government is more than willing to advocate global policies that push for
a doubling of renewable energy capacity by 2030.
This announcement will definitely cool the current conditions faced by the Chinese Solar Manufacturers, mainly due to over capacity and dwindling Margins. According to investment bank Maxim Group, the Solar Module Manufacturer margins have fallen to 10%, currently from 30% in 2010.
Also about 90 percent of Chinese poly silicon producers have suspended production mainly due to the rise in imported poly silicon from the major producers in Europe and the
US. Reports cited that imported poly silicon had increased 26% since the
beginning of the year, while ASPs were approximately 61% down from a
year ago.
Debt Hitting at Head:
According to Maxim group, Chinese Solar Manufacturers accumulated heavy debt, mainly during 2009 to 2011, fueled by rapid capacity expansion, through out the country. Currently they are even struggling to pay interest payments. But Government money has helped and still helping them stay afloat. The Imposition of anti-dumping and countervailing duties on imports of crystalline silicon PV Cells and modules manufactured from the country by the U.S. had also hit them hard. As a measure to counter attack the Scenario, Chinese government had injected nearly 13 billion yuan to Chinese PV Industry, of which 7 Billion Yuan was allocated just last month. The Government is even planning more funding.
Article Posted by Gokul R Prabhu
For more details contact gprabhu@renewindians.com
