China will help the solar companies with "Distributed Energy" expansion
05/24/2012 - The leading PV manufacturers, including Suntech Power(NYSE:STP), Canadian Solar(NASDAQ:CSIQ), Trina Solar(NYSE:TSL) and Yingli Green Energy(NYSE:YGE), were gathered in Shanghai and formed the Solar Energy Promotion Alliance(SEPA). While venting their frustration on the "Double hits" of US anti-dumping duty and anti-subsidy duty, they cried out loud for the government help.
Actually, it appears that the policy makers have begun to develop supportive policies. With upcoming "Regulation for the Distributed Generation" , the authorities apparently tend to foster the domestic PV industry by promoting the distributed generation.
According to an article published on China Security Journal yesterday, Jun Wang, one of top official in charge of new energy development at National Energy Bureau, recently wrote that "the self sufficient electricity generation" model is the primary mode and development trend for the new energy generation and the distributed generation. Junfeng Li, a public voice for the central government's renewable energy policy, indicated that the distributed generation can also ease up the pressure of over-capacity in the PV industry; and the solar energy that was developed collectively in the past should from now on gradually shift its focus onto the distributed PV generation, promoting "the self sufficient electricity generation" and relieving the tension of the grid interconnection.
It is reportedly that forthcoming "The 12th Five-Year Plan of Renewable Energy Development " will target photovoltaic power generation capacity up to 10 GW by 2015 and 50 GW by 2020. It is worth noting that the rooftop PV power plant will generate 3 GW by 2015 and 25 GW by 2020, becoming a dominant application of the renewable energy generation within 10 years.
Is the Chinese PV industry completely subjugated?
Many people believed that PV industry had saw its trough following the third quarter of last year when the major PV companies released their financial statements, and the recovery was just a matter of time. As the U.S. Department of Commerce issued a preliminary ruling to impose high anti-dumping duties on the Chinese solar companies on May 17, the PV industry lost the remnants of a glimmer of hope to climb out of the bottom.
The anti-dumping duty imposed on the Chinese PV cells and panels is from 31.14% up to 249.96% on top of the previously announced anti-subsidy duty of between 2.9% and 4.73%. Although the final ruling is pending, the industry insiders believe that the Chinese solar companies are unlikely turnaround in the final ruling during the U.S. presidential election year when President Obama has been taking a series of harsh trade measures against China.
What will the Chinese solar companies and government do to save the PV industry? A trading war is not eliminated, according to an article published in "China Science Daily" on May 24.
(Translation Excerpt from"The PV industry sank into a tug of war between the US and China"
"A reliable source says that a proposal of anti-dumping duty on the US polysilicon has been approved, and whether or not filing a complaint depends on the American attitude toward the Chinese PV cell and module. Once the case is filed, China will levy punitive taxes on polysilicon imported from the USA. "
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