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Asia Report: Solar Stocks Tumble After Tariff Ruling

Renewable Energy World Editors
May 21, 2012  |  4 Comments

Print

It was another rough week for China's once booming solar manufacturers, who are already reeling from overcapacity and major subsidy drawbacks in the European market.

On Thursday, the news got worse as the United States, one of the more lucrative markets out there, held up a giant detour sign to those Chinese panel makers who export their products into the country. The markets didn’t react well to the news of 31 percent anti-dumping tariffs. Shares of the big three of Suntech, Yingli and Trina dropped significantly toward the end of the week.

Meanwhile, Chinese companies are starting to band together as they consider their collective next step in an ongoing dispute that has deep political implications.

“We held an emergency meeting in the morning of May 18 after hearing the news, and we are now contacting and mobilizing Chinese companies to rebut the tariffs,” said Gao Hongling, Deputy Secretary General of the China Photovoltaic Industry Alliance, according to ZDNet.com.


MORE ON CHINA-U.S. DISPUTE

Ruling Goes Against China: The U.S. Department of Commerce on Thursday announced stiff anti-dumping tariffs of around 31 percent on crystalline silicon solar panels imported from China, leading to a new round of concerns on how the duties will impact the growing American solar industry.

Will Ruling Restore Balance?: In the quest to "level the playing field," the 31 percent anti-dumping tariff announced Thursday was a good start, said SolarWorld President Gordon Brinser, but even more is needed to bring the industry back into balance. Key Chinese manufacturers, meanwhile, remain confident that the tariff will be reduced between now and the final determination.

U.S. Bill Looks to Exclude Chinese Panels from Tax Credit: In a move aimed squarely at China, two high-profile Senate Democrats introduced a proposal Tuesday that if passed would set American-made requirements on solar installations looking to qualify for the 30 percent Investment Tax Credit.


IN THE NEWS

South Korea Carbon Program Passes: South Korean lawmakers have approved a national emissions trading program to reduce the global warming pollution from its largest sectors by 2015.  South Korea is the world’s eighth largest emitter of carbon pollution from fossil fuel burning. The legislation is set to go into effect in 2015 and would cap the carbon pollution from power plants, steel plants, ship makers, and large universities.

Minister Praises India Solar Project: New and Renewable Energy Minister Farooq Abdullah said the new solar power plant atop a water canal in the state of Gujarat has shown the nation the way and it will be replicated by Damodar Valley Corporation. The world's first 1 MW canal-top solar power plant in Mehsana district virtually eliminates the requirement to acquire vast tract of land and limits evaporation of water from the 750 meter long canal.

India Wind Developer Falls Short of Target: Mytrah Energy boosted its installed wind-turbine capacity in India to 224 megawatts, falling short of a goal to build 500 megawatts by June.

In Japan Solar Cells Surge: Sales of solar cells in Japan rose 32.1 percent in the year ended March 31 from the previous year to 1,404 megawatts, driven by robust demand from house owners, industry data showed.


A DEEPER LOOK

India May Approve First Offshore Wind Projects: The Indian government may soon allow project developers to set up the first offshore wind energy projects in the country. The initiative by the government has been taken after several project developers expressed willingness to set up offshore projects which may deliver higher revenue compared to onshore projects.

Ups and Downs of Japan’s Wind Sector: The capacity to produce electricity from wind power in Japan increased about fivefold to 2.5 million kilowatts over the past decade, but the pace of increase in the past fiscal year to March was the slowest during the 10-year period at slightly below 100,000 kilowatts due to the termination the previous year of government subsidies for plant construction.

Cambodian Village Gets Solar: Koh Slar, a small rural village in Kampot Province in southern Cambodia, recently celebrated the opening of a solar power plant built by a Korean aid agency. The villagers of Koh Slar, who are mostly disabled soldiers from years of civil wars in the country, had little or no access to electricity.

Dwindling Support for Jatropha in India: Jatropha, hailed by India as a viable crop for biofuel, has so far failed to live up to expectations, and a negative report has spurred officials to put a hold on the national plantation program.


HAVE YOUR SAY

If you are an industry expert and would like to be a contributor for RenewableEnergyWorld.com, please contact us at editor@renewableenergyworld.com so we can show you how to get started.


IN CASE YOU MISSED IT

May 7-14, 2012 Asia Report: Solar Dumping Announcement Set for May 17
May 1-7, 2012 Asia Report: European Ruling Could Cut Into Palm Oil Exports
April 23-30, 2012 Asia Report: U.S., India Strike $125 Million Investment Deal
April 16-23, 2012 Asia Report: Japan Solar FiT Likely In Line With Industry Request
April 9-16, 2012 Asia Report: Are China’s Sinovel, Goldwind Seeking Vestas Takeover
April 2-9, 2012 Asia Report: 200-MW Solar Project Planned in Japan
March 26-April 2, 2012 Asia Report: India Slashes Wind Incentive
March 19-26, 2012 Asia Report: India’s Wind Potential 30 Times Greater Than Believed
March 5-12, 2012 Asia Report: After Quake, Japan Pushes for Asia Supergrid
Feb. 27-March 5, 2012 Asia Report: Decision on Trade Dispute Looming

4 Comments

Register To Comment
John Gregson
John Gregson
May 27, 2012
The best countries for, photovoltaics (PV)are near the equator.
These countries where the days are long and the sun is intesive.
John Gregson gregson.john@yahoo.co.uk
COMP"EX" Certificate Number 2553. Issued December 1997.
Knowledge Transfer Partnership Member. February 2009.
Anumakonda Jagadeesh
Anumakonda Jagadeesh
May 26, 2012
Why not China sell their over capacity Solar PV to developing countries at an affordable price. Infact Developing countries are good market for Renewables especially Solar PV.
Dr.A.Jagadeesh Nellore(AP),India
E-mail: anumakonda.jagadeesh@gmail.com
Douglas Prince
Douglas Prince
May 23, 2012
Screw China. We can always get panels from Canada, Japan, Germany, Taiwan, the US, etc.
Screw China.
ANONYMOUS
May 23, 2012
The fact that China has been dumping solar panels and similar manufactured goods on the foreign markets has been an openly discussed problem in China. Manufacturers have been caught avoiding taxes by "donating" entire shipments to "charitable organizations" that are wholly owned subsidiaries of the manufacturing companies. The manufacturing company would take the solar tax credit, the 17% VAT rebates, and credit for the donation for the "donation" and make a very good profit. The "Charity" would then sell the panels to a company in the US for substantially less than manufacturing costs and use all but 3% of the income for "operating costs".

This and similar schemes are very common in China.

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Renewable Energy World's network editors help deliver the most comprehensive news coverage of the renewable energy industries. Based in the U.S. and the UK, the team is comprised of editors from Pennwell Corporation's myriad of publications...
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