Re: China announced a new subsidy for solar power plants
- From: phil scott <phil@xxxxxxxxxxxxx>
- Date: Tue, 21 Jul 2009 21:58:15 -0700 (PDT)
On Jul 21, 10:56 am, -=DirtBag© <D...@xxxxxxxxx> wrote:
DJ Solar Companies Jump As China Announces New Subsidy
Heres the poop:
It means that the present glut of solar products will start getting used
up. US Companies with a good footprint in CHINA will start moving
product and those producing in China will be in position to move there's
locally and not have the costs associated with shipping world wide etc.
Currently there is a glut of panels. (Germany was the driving force
until the last year after they cut solar subsidy's.) From this a glut
started. They are talking about filling the desert in AZ with solar
panels.. Only takes a few big projects and Solar profits will snap back.
Note:
Some analysts wonder if this China 50% subsidy for solar plants will
take up up this slack. Companies like China solar player YGE should do
well in any event IMO.
...and ESLR (I knew you were wondering about my favorite future Solar
play) ESLR has a great China relationship and is building a new
production facility there...
They (ESLR) have the cheapest cost per power watt. With their
proprietary STRING RIBBON Technology..
They have a new online facility in Devon, Mass. that is ripping them out
to fill a couple huge contracts in China..
They have been setting up a production facility in China to build the
panels from Ribbons manufactured at the Devon, Mass manufacturing plant.
This way they can ship cheaper and use China labor on the China panels
thus they get a favored trading status with the China in this Solar
expansion.
China lacks infrastructure badly outside the cities. The provinces are
still stone age compared to areas around cities like Shanghai. You need
to understand how Bad of infrastructure there is in China. It is these
areas that will be getting serviced in the future and they are HUGE
areas.. China is putting in all kinds of Power including Nuke power.
Heres the article off the WSJ
.
By Shara Tibken Off DOW JONES NEWSWIRES NEW YORK (Dow Jones)
--Shares of solar companies jumped Tuesday after China announced a new
subsidy for solar power plants. Ê China's Ministry of Finance said it
plans to offer a 50% subsidy for solar power plants and a 70% subsidy
for plants in rural regions. The funding is for model or demonstration
projects up to 20 megawatts in each of its provinces. Ê "Clearly a lot
of people are thinking that one way or another China is going to build
its domestic solar industry," Jefferies & Co. analyst Paul Clegg said in
an interview. "That could be a good thing for the companies and the
industry overall because it would create one more market out there to
take capacity going online." Ê Clegg said there's currently an
oversupply of capacity in the marketplace, but he and other analysts
warned the newest Chinese subsidy isn't enough to alleviate the problem.
Ê In recent trading, Suntech Power Holdings Co. (STP) climbed 9.2% to
$17.68, while Yingli Green Energy Holding Co. (YGE) gained 8.5% to
$12.37. LDK Solar Co. (LDK) jumped 9.3% to $10.33, and Trina Solar Ltd.
(TSL) increased 4.2% to $27.50. JA Solar Holdings Co. (JASO) edged up
2.6% to $4.68. Ê The announcement Tuesday is the latest in China's move
to expand solar energy. In March, it announced a subsidy for rooftop
projects, and many analysts have said they expect further subsides to be
offered, including a possible national feed-in tariff where utilities
buy energy from the solar plants for a specified period. Ê Cowen & Co.
analyst Robert W. Stone said he expects China to become one of the top
three markets for solar power by 2011. Ê He said the latest news is
good for Chinese solar companies as it could give them a larger domestic
market along with growing share in the export market. Ê "Then the
indirect benefit to the rest of the solar companies is the fact that
incremental demand out of China could help absorb some of the excess
silicon supply," Stone said in an interview. Ê Jefferies' Clegg said
that while shares are trading up on the news, when people dig into the
details, they might not be as enthusiastic. Ê "We believe that either
returns on projects wouldn't be high enough to really attract a lot of
capital, or prices at which the companies have to sell equipment like
solar panels would be very low," Clegg said. Ê In addition, Raymond
James analyst Pavel Molchanov said the stock reaction Tuesday is "more
of a sentiment reaction that a substantive reaction." Ê He said China's
newest program - which would provide subsidies for about 440MW of
installations over three years - seems large in comparison with the
100MW it had installed by the end of 2008, but it's small compared with
Germany's growth rate of about 1500MW this year alone and when
considering that China accounts for close to half of all solar power
manufacturing worldwide. Ê "The bottom line is that it's a meaningful
program relative to the small size of the Chinese solar market today,
but it barely makes a dent in the enormous volumes of solar modules
being produced by Chinese manufacturers," Molchanov said, adding the
program isn't going to "transform the supply and demand fundamentals of
the market."
its smoke in th long term nuclear costs way less than a tenth as
much per KW
Phil scott
.
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