Asia – Page 4 – Solar Magazine

EIB will help Indian renewable energy project by loaning EUR 80 million

EIB loans India €80 milion for renewable pojects

India gets a €80 milion loan for renewable energy

The European Investment Bank (EIB), helped Italian export credit agency SACE S.p.A, signs EUR 40 million loans as first instalment to SREI Infrastructure Finance Limited (SREI) for financing green energy programs in India.

The EIB and Italy’s SACE S.p.A signed a €40 million long-term loan agreement with India’s SREI for helping with the finance of some investments which have the role of mitigating climate changes in the country.

This triplet cooperation is the first movement within an €80 million pledge and it was created to promote Italian exports, help with India’s renewable energy objectives and benefit economies in the European Union.

Some parts of the loan is dedicated to renewable energy projects in India, that are mostly under the wing of private sector companies. To be precise, the loan will help electricity and heat generation schemes, meaning photovoltaic energy and wind power.

The loan is a bid made by all the parts to help India with it’s struggle for environmentally sustainable power. Moreover, it will help stimulate portions of the Indian economy although there is a development of domestic energy resources, improved energy efficiency and a reduction in airborne pollutants and carbon emissions.

This loan is a part of the EIB’s largest nergy Sustainability and Security of Supply Facility (ESF) fund, that has, until now contributed with more that €4.9 billion regarding a long term investments programs in the Asian continent, and €2.2 billion of that has been ploughed into the energy sector.

The Japanese market is overflow by foreign-made cells and module

Domestic-made product levels in Japan are dominated by a huge amount of foreign-made imports in a time when Japanese solar cells and module manufacturers are willing to export globally.

Although Japan is considered to be a solid market for foreign solar developers to turn down, statistics from the country’s solar industry say that show cells and modules made outside Japan are enjoying a great success since onset of the world’s most generous FiT regime.

Since prime minister Shinzo Abe launched a JPY42/kWh (US$0.42/kWh) FiT payment in July 2012, the Japanese solar market has become one of the biggest global draws, a fact reflected in figures released by the Japan Photovoltaic Energy Association (JPEA) that show the amount of cells and modules shipped in Japan has trebled year on year.

After that, in the first part of the financial year total shipments went from 613.5 MW to 1.7 GW in the year’s first quarter, although FiT payment was being reduced to JPY37.8/kWh since April 1st.

On the other hand, shipment to Japan to Japan quadrupled from 445 MW to 1.65 GW the expense of cell and modules exports to the rest of the world that went down from 168 MW in April-to-July 2012 to 35.2 MW in this fiscal quarter.

As a matter of fact, -made cells and modules rose 313 MW to 521 MW is being shared as good news for Japanese solar manufacturers. Manufactured cells and modules outside Japan, that gathered 132 MW in the first quarter, went up to 1.13 GW this year.

An EU report with worldwide restrictions does not mention Chinese solar manufactures

None of the Chinese solar manufacturers are mentioned in the almost 200 page report. Taking care of the green energy industry from 2011 onwards is the closest form of criticism in the report.

The EU has an ongoing anti-subsidy investigation related to Chinese solar projects, but a report made by the European Commission’s directorate-general for trade into restrictive trade measures worldwide does not mention explicitly any pleas for the Chinese government who has dishonest subsidies for its solar manufacturers.

The Tenth EU report on potentially possibly prohibitory trade measures was made before the G20 summit of world leaders in St Petersburg, Russia.

The almost 200-page report shows some possibilities of maybe restrictive measures that include also ‘behind-the-border’ restrictions such as measures “to stimulate domestic industry or exports at the expense of competing foreign economic players.”

Inceptive measures condemned hold subsidized interest rates about export credits in India, US$1.5bn of state grants by the G20’s Russian host for luxury goods retailers, preferential government loans and insurance for South Korean retailers and a JPY200bn (US$2bn) Japanese subsidy to cover up to half the costs of retail firms. Still, China is noticeable by absenting from the recap of displayed stimulus measures applied this year until May 31.

The closest approach of the EU to the mentioning of the pleas by solar manufacturers of subsidized loans from Chinese-state-owned banks is in a mention of China’s 12th five-year plan – to govern industrial policy from 2011 to 2015 – that reported an intention to take care of seven strategic industries that ‘green energy.’

The solar development in Japan may be limited by the gird capacity

Japan could have problems with the grid capacity

The southern Japanese may have less than 1 GW of grid capacity left for upcoming solar and wind projects. This statement results from the new analysis from Bloomberg New Energy Finance (BNEF).

“Grid congestion” appears to be an important layoff in going on with the renewable energy market, in Japan’s blooming solar industry. Still, in the north of the country, on the island of Hokkaido, there is a well know shortage of grid capacity, and now the new BNEF report says that related issues may appear in the south of the country also.

Although a 22.4 GW of new green energy capacity have been accepted as part of the FIT program that emerged in last year’s July, BNEF analysis reports that the Chugoku Electric Power Co. and Kyushu Electric Power Co. posses a little under of 1 GW of accessible grid capacity in the south of the country.

BNEF also shows that the report reveals an estimated grid capacity of 34 GW as being usable for upcoming wind projects all over the country.

The rehabilitation of Japan’s energy market are on going at this moment and Bloomberg is announcing that a bill is said to be introduced into Japan’s parliament in the fall. BNEF believes that a free trade could bring grid development.

Japan’s utility market continues to be partially closed having regional monopolies as a feature. These monopolies have been under pressure since the Fukushima Daiichi nuclear power plant disaster in 2011.

Telecommunications entrepreneur Masayoshi Son, the billionaire Chairman and CEO of Softbank Corp., has been involved in marching for increased electricity market reregulation. Softbank is already known as being active in expanding photovoltaic projects in the country.

Roxana MORARU

Powerway will generate a 30MW PV program in Thailand

Powerway will install 100,000 Pv modules in Thailand

A field of over 60 Acres in the north of Thailand is said to be covered by 100,000 PV systems that are said to be distribute to the PV project.

As the current figures report, until 2016 the entire installation of photovoltaic solar energy in Southeast Asia is said too reach 5 GW. The request for energy is developing and Thailand is to turn into Asia’s most prosper renewable energy market. The Thailandese government gives to the solar industry a great deal of attention. Moreover, as Asia’s first implementation of one of the countries FIT projects, has a strategy of reaching the goal of installing a 2GW PV plant until 2022.

If the last year’s success, when the Thai 18MW solar farm project was completed, is taken into account, you can say this is the second biggest success for Powerway. A professional aspect and design and a vast solar farm construction background is what defines Powerway, so the company again worked together with a renowned French EPC company. The project was formally launched in May, but the final steps are programmed by the end of the year. The project will install 100, 000 PV solar panels in an area of over 60 acres. The resulted power can provide for 90,000 people.

The project is situated in Northeast Thailand where the weather conditions are not easy to predict. Still, Powerway engineers have designed a ground mounting system that has a embedded foundation said to be reliable, cost effective and easy to install. Moreover, the company has sent an experienced project team to the job site that can offer technical support and train the local teams.

The Japanese government said yes to 19 GW of non-residential PV

19 GW were aproved in Japans non residental Pv

Japanese government approves 19 GW in non-residential PV

Japan’s Ministry of Economy Trade and Industry (METI), as yesterday’s figure’s report says, has shown its approval of about 19 GW of commercial rooftop or ground mounted solar applications from July 2012 until April 2013.

Clear figures that are proof of Japan’s increase in the solar industry is under the feed in tariff (FIT) were reported yesterday by the administrative authority responsible for the photovoltaic installation scheme, METI. The tariff was brought into effect in July 2012.

Though the fact that solar is growing in the country, some details about the time when 18,681 GW approved installations have to be completed and grid connected is not exactly clarified. Bloomberg New Energy Finance believes that between 6.9 GW and 9.4 GW of capacity is going to be added to the grid in the country calendar year of 3013.

Monthly applications are waiting for approval under the FIT scheme, the follow-ups of the reduction of the FIT rate, programmed for applications approved after March 2013 is clear. Installations for non-residential photovoltaic applications summed 7.669 GW in March, as to 5.263 GW in February and 1.892 GW in January.

Installations approved from April 1 receive 37.8 yen/kWH (USD$0.39/kWh).

METI believes that some projects could have been approved, still construction and installations were late, and said that the projects will be looked over.
Almost one forth of PV installations have been proposed on Japan’s second biggest Nordic island, but it totals only 3% of the electricity request. So vast grid improvements could be asked for and some are doubtful that it will happen leaving the photovoltaic installations stranded.

The taiwanese group, Foxcon is considering to enlarge solar operations

Fexcon to built 6 PV plants

Foxcon, a taiwanese electronics group, which is willing to diminish its dependence upon Apple, is said to decide by the end of the year if it would enlarge it’s solar operations.

The producer of Apple iPhones and iPads, Foxcon, is preparing an entrance into a solar sector.

The taiwanese electronic giant administrates a little solar panel factory in the east of China. In April, the factory signed a deal with SunEdison to produce 350 MW of solar modules for the company in Juarez, Mexico, at a manufacturing facility.

In spite of the arrangement, Foxcon it still considered to be testing the solar waters and yet to commit to an industry hit hard by overcapacity and falling prices. Still, if the timing is right, Foxcon could profit from this entrance into the sector, as market analysts predict.

The electronic group is willing to decide about it’s entrance by the end of the year, as Reuters announced. The company has the opinion that “renewable energy is a potentially good trend” but also that it was “an industry we probably need to know more about”, in Foxconn’s spokesman words, Simon Hsing.

Foxconn didn’t report its investment in solar, but Reuters disclosed the fact that that with $22.7 billion in cash on its balance sheet as of March, the firm could easily expand in into the field.

Moreover, Foxconn has a preliminary agreement with solar silicon producer GCL-Poly Energy Holdings to set up solar-related ventures in northern China, but the deal hasn’t paid off yet.

The company is said to be eager to diminish its trustworthiness on Apple, which accounted for aproximatly 60% of its revenue in the past year.

EU journal gives details on the trade case

There was a settlement in the Eu-China trade

The EC published details of the China trade, some questions are still unanswered.

The trade dispute over Chinese modules and cells regarding the minimum import price was approved on Friday. Still, some questions have not been answered.

Some details about the EC’s trade dispute have been published in the 6th of August edition of the Official Journal. The EU reported that it agreed with the compromise.

The decision reveals details about the way that the negotiation lead to a minimum price for the freely imported PV. The first step the commission took was to verify whether a minimum price could be associated with the indexes of some commodities. PV modules do not permit an easy correlation between the commodity prices and retail prices. It is implied the the EC used indexes compiled by Bloomberg and pvXchange.

The Commission says the following aboutthe impact of the minimum prices: “In order to assess whether that price undertaking removes the injurious effect of dumping, the Commission has analysed, inter alia, the current export prices and the level of provisional duty. On that basis, it was concluded that the price undertaking removes the injurious effect of dumping.”

However details about the specific minimum prices will nor be revealed. But, accordind to the media reports the price range is between €0.56 and €0.57 per watt with the ceiling on imports from China set at 7 GW.

The pertinent questions the have not been answered are:
-Imports of participating companies will reflect current annual levels. But what is the correct annual level in such a fast changing market?
-What happens if the targeted annual level is exceeded, and how will individual producers, in this context, be coordinated?
-Price indexes compiled by Bloomberg and pvXchange were used for the negotiated minimum price. The document does not explain how changes in the minimum price will be negotiated.

-How will modules be treated that are not manufactured in China nor the EU, but that contain Chinese cells?

Roxana Moraru

The lowest module price in UK solar industry needs to be malleable

The deal between EU and China regarding the solar panel prices should have been over by now, the minimum price should be lower, and the government of the UK should, soften the blow of ‘Brussels’ meddling as the Solar Trade Association announces.

The STA , a solar trade body, disagrees with the ongoing situation between the two continents, regarding solar panel imports.

The EU trade commissioner, Kerel De Gucht, confirmed that a settlement has been made. This decision is about a minimum price for Chinese modules but also about an annual volume cap on imports to the EU, as STA reports. They also believe the Uk government must constrain it’s support policy for the sake of solar projects in the country.

The STA also says the if the minimum price for Chinese modules , €0.56 per watt, is also applied to the UK the existing projects might not be economic.
Moreover, in a press release they asked that the duration of Brussels agreement to be shortened for a better fluctuation of the minimum price.
“Thank God we’ve moved a long way from the original proposals, which were truly appalling and without justification” as STA chief executive Paul Barwell announced.

“However, we’re concerned the deal reached by China and the commission will ultimately achieve little, as German manufacturers are unlikely to be able to compete long-term with the Asian giants. Meanwhile in the short term, the proposals could do real damage to the U.K. downstream solar industry and to national deployment levels. They leave the U.K. non-domestic solar industry in a very difficult position, when in fact the U.K. is one of the major EU growth markets, and ought to remain so”, he added.

“It would make little sense from a public value-for-money perspective for the U.K. government to allow the solar industry to grind to a halt because of Brussels’ meddling” STA PV specialist Ray Noble concluded.

Roxana Moraru

Negotiations between E.U and China are standing still

The subject of cheaper Chinese PV important is still a reason of discussion since Beijing is not satisfied with the minimum import price of €0.57/W for modules suggested by E.U.

The European Commission and the Chinese Ministry of Commerce are still negotiating about the import of cheaper crystalline modules, cells and wafers. The two parts didn’t reach a conclusion.

The chance of settling was still possible until the Friday. The Commission was planning to implement a maximum import ceiling of 7 GW on Chinese modules and a minimum module import price of €0.57/W (US$0.76/W).

Beijing was suppose to report a settlement on the import ceiling for modules with the EU, but after the minimum import price became a sensible matter on Friday, the negotiations were postponed. The cause of the discontinue of the negotiations was the fact that the Chinese delegation didn’t agree with the minimum import price.

€0.57 is not a good offer for China because the Asian and European manufacturers who purchase cells from Asia offered acceptable prices before the negotiations. So, the import ceiling compromise of 7GW is not an option either.

The strategy of the Chinese delegation will be negotiated on Sunday and the new offer should be available by the 5th of August.

Roxana Moraru