China Picking Solar Winners

2014 is shaping up to be another big year for solar power in China, but many manufacturers will fall by the wayside over the next 12 months.

2014 is shaping up to be another big year for solar power in China, but many manufacturers of solar panels will fall by the wayside over the next 12 months.

In an effort to further consolidate the industry to address oversupply issues, the Chinese government recently excluded most of the local solar panel manufacturing industry from domestic support measures.

According to Solar Power Portal, 80% of currently operating manufacturers did not make the final cut. A final list of just 109 manufacturers was published December 30.

Among those on the “winners” list are Daqo New Energy and Yingli Green Energy.

Those not on the list will also not be permitted to take part in domestic tenders or benefit from export tax rebates. The list will be revised every 6 months.

A 12GW 2014 solar installation target has been set by the Chinese government; so for those on the list and others that are somehow able to survive, 2014 could be a particularly busy year.

Much of that target is believed to favour smaller solar projects rather than utility-scale solar farms; although the reported split of 8GW small/medium scale and 4GW large scale is apparently not set in stone.

According to preliminary estimates from the China Photovoltaic Industry Alliance, the country’s installed solar generation capacity increased by around 8 GW in 2013, of which 6 GW was attributed to large scale and 2 GW small and medium scale.

China has set a target of 35GW installed capacity in total by 2015; although as has happened in the past; this number may be revised.

In related news;  the main instigator of the so-called “solar trade wars” sparked in 2011 between China and the USA, SolarWorld USA, has vowed to ramp up its efforts against what it sees as anticompetitive trade practices.

However, the USA’s Solar Energy Industries Association (SEIA) opposes the escalation.

“More litigation is the wrong approach,” said Rhone Resch, president and CEO of SEIA.

“Trade litigation is a blunt instrument and, alone, incapable of resolving the complex competitiveness issues that exist between the U.S. and Chinese solar industries. It’s time to end this conflict and negotiations must play a role.”

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