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ian Chang
Send Message is following the daily news of renewable energy development in China. The posts are based on my translation without using any machine translation program. Whether it's full article translation or a simple translation excerpt, my blog will be strictly in line with the original... More
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  • Some Interesting News Of The Renewable Energy In China - Weekly Selection (05/26/2012)

    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. "

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    May 27 11:03 PM | Link | Comment!
  • Some Interesting News About The Renewable Energy Development In China - Weekly Selection(5/20)

    Key Highlights:

    • Chinese lead-acid battery market is not optimistic, and the April sales was worse than expected.
    • A survey of 25 executives in auto industry reveals that Hybrid Electric Vehicles are the most agreeable solution in China.
    • JinkoSolar(NYSE:JKS) is reportedly doing well relatively in the slumping PV industry.
    • Japan's Mitsubishi Chemical is making progress to produce lithium battery anode material in China.
    • Honda began to transfer its Hybrid Vehicle technology to its Chinese joint venture in order to competing with European and American auto manufacturers in the world's largest auto market.

    Some Details:

    Lead-acid battery market outlook is not optimistic

    05/11/2012 ( - It is reported that majority of companies producing motive power batteries and SLI (Starting, Lighting & Ignition) batteries said their April sales were worse than the prior month, while most stationary battery makers kept their April sales steady.

    Motive power battery makers blamed the weak downstream demand at the time when the whole industry has been digesting inventory. Tianneng Group (0819.HK) and Chaowei Power (0951.HK) dropped their price by 10-15%, having caused the small and medium companies to sell near their costs or profitless if considering the later maintenance fee. The month of April used to be an off-season for motive power battery, but this year the off-season came one month earlier, and the situation was even worse than the other years in the past.

    Survey: Most executives of auto industry support Hybrid Electric Vehicle

    A survey to 25 top executives of auto companies was conducted during 2012 Beijing International Automotive Exhibition. As for the question "Which new energy technology for automobile applications is most suitable to the current condition in China", 57% of the respondents supported Hybrid Electric Vehicle(NASDAQ:HEV) and 25% agreed on Plug-in HEV, while only 14% of the executives in the survey showed interest in All-electric Vehicle.

    JinkoSolar outplayed other Chinese solar companies on the rat race

    9 of 11 Chinese solar companies listed in the US stock market lost money in 2011, but this has not slowed down the rat race in the industry.

    The information available to the public indicates that Suntech (NYSE:STP) had $1 billion net loss in 2011; LDK Solar(NYSE:LDK), Yingli Green Energy(NYSE:YGE), Canadian Solar (NASDAQ:CSIQ), JA Solar (NASDAQ:JASO) and Trina Solar (NYSE:TSL) were all in red with net loss of $655.5 million, $509.8 million, $90.9 million, $68.3 million $37.8 million respectively in the same period.

    "Though the price has already been cut down to the bone, we are still competing viciously, this is really not a good move for the tier-one companies in the industry." said JinkoSolar(JKS) Vice president Shishang Lin.

    The best performer among the 11 companies, JinkoSolar had 2011 net profit of $ 43.4 million , and non-GAAP net earnings of $ 700,000 during the global depression of the PV industry.

    The great depression of the PV industry occurred as the rapid expansion of the production capacity led to price drop dramatically; in 2008, the polysilicon price was close to $ 500 / kg, and now it has dropped to $21-$28 / kg.

    "But the global overcapacity was misunderstood in a way that everybody had assumed the 2011 global capacity of 30GW and the market demand of 20GW, in fact, the total capacity of first-tier suppliers was only a dozen GW. The small suppliers with an annual output of 800MW or 300MW, counted as larger part of the global capacity, were in a rat race which would drive most of those no-brand, no-scale small firms to shut down their businesses, and the tier-one suppliers really should have not be involved in this competition." said Shishang Lin.

    JinkoSolar did not follow suit in 2010 to make quick money, obviously had no intention to participate in vicious competition. "We never want to be the largest and the fastest, but we tended to keep our market focus on improving our brand name and maintaining the balance between production and sales, this is the primary reason we have been able to honor our contracts on time and build up our customer base for the past six years." said JinkoSolar CEO Kangping Chen.

    While LDK Solar's debt was up to $ 6 billion, JinkoSolar was able to promote its brand name with a big move. On May 15, JinkoSolar signed the Spanish Valencia football club, providing about 100 million yuan to sponsor the 2012-2014 seasons. "Though it is really a money-burning thing, it will help promote our name brand significantly", said Shishang Lin.

    JinkoSolar also launched the second generation of its component products on May 15, and signed the country's largest single photovoltaic power plant project - power plant in Gansu Heihe. "When the majority of solar companies were still chasing the foreign market, we had shifted our focus to the domestic market; our decision was right, because the international market was hit by a severe recession last year during which we had make some impacts on the large scale power plant market with our great efforts. "said Kangping Chen.

    Though JinkoSolar is tight-lipped, its partner Xingjie Zhu, chairman of Gansu Heihe Hydropower Development Co. told reporter that this is a project with a total investment of more than 500 million yuan, and "both sides agree to use the EPC (Engineer-Procure -Construct ) model of cooperation, procure components over 300 million yuan with the remaining balance actually belonging to JinkoSolar."

    The question now is whether or not the rat race will cause trouble in the domestic market as it did in the international market. At least, the government policy and guideline don't show any optimistic trend. On May 3, Ministry of Finance, Ministry of Science and Technology, and National Energy Bureau jointly issued a notice that would once again reduce the subsidy for the consumers of PV power generation. and set the new subsidy standard to be 5.5 yuan / watt.

    Mitsubishi Chemical lays a foundation for battery anode materials production in China

    05/17/2012 ( - Mitsubishi Chemical (TYO: 4188) made new progress for its initiatives of producing anode materials in its two factories built one after another in Pingdu of Shandong province.

    It is reported that Qingtao Anode Kasei Co., Ltd (QAK), wholly-owned by Japan's Mitsubishi Chemical, planned to build eight production lines. The phase one project with a total investment of 260 million yuan and an registered capital of 92.3 million yuan, broke ground on a construction site of 22,000 square meters at the end of December 2010, was put into operation in March 2012 on the four newly installed production lines having a capacity of 10,000 tons of lithium battery anode material for potential sales of 700 million yuan and increasing the added value of flake graphite materials and spherical graphite materials by 640 million yuan and 450 million yuan respectively. Upon completion of all eight production lines , the annual output of lithium battery anode material will be more than 30,000 tons with potential sales of 2 billion yuan; and the added value of flake graphite materials and spherical graphite material will be up to 1.9 billion yuan and 1.35 billion yuan respectively. This will become the world's largest lithium battery anode material production base, leading the world in the performance of the lithium battery anode material.

    The second factory, built by a joint venture with Meiwa Co. and Qingdao Taida Tianrun Carbon Materials Co., Ltd., is principally engaged in the raw material production for lithium battery anode material. It is said that the phase one project with a total investment of $9.2445 million and an registered capital of $ 4.6223 million was completed at the end of April 2011, producing 2000 tons of the raw material for potential sales of 58 million yuan. The phase two is expected to be put into operation in 2013.

    Honda will provide China its hybrid vehicle (HV) technology

    In addition to its joint venture with Dongfeng Motor, Honda also considers the technology transfer to other car manufacturers. Honda hopes to spread its hybrid vehicles in the world's largest auto market by encouraging the Chinese auto manufacturers to get into the hybrid business. As the world's largest energy consumer, China has launched related programs to popularize environmentally friendly vehicles. By leveraging its HV technology, Honda tries to challenge the European and American manufacturers who are the frontrunners in the Chinese auto market.

    May 20 4:02 PM | Link | Comment!
  • The Advanced Battery Development In China - Weekly (05/12/2012)

    The state grids may generate renewable energy as high as 15% in a new quota system.

    05/04/2012 (China Security Journal) - "Renewable energy generation quota regulation(Discussion Paper)", a primary concern in the industry, has been delivered, and will be officially announced to implement it after broadly soliciting opinions from various groups. Obtained from the National Energy Bureau by an reporter of China Security Journal, the Discussion Paper suggests that the quota and the related obligations for renewable energy generation would be shared by electricity generation enterprises, power grids and local energy regulatory authorities, among them the state grids need to undertake renewable energy generation as high as 15% in the new quota system.

    "Lead-acid battery industry entry requirements" may be released in May

    05/08/2012 - A new storm of environment protection from lead-acid battery may be coming to attack soon. This might be another opportunity for China's lead-acid industry.

    The environment protection storm occurred last year was unprecedented for the lead-acid battery industry. More than 80% of lead-acid battery companies were banned or shut down, according to the data from the Department of Environment Protection. However, the leading companies in the industry had a good year. Camel Group(SH:601311) increased sales 17% from the previous year; The revenue of Fengfan(SH: 600482) was up to 4.074 billion yuan , an annual increase of 25.18%; Chilwee Power(0951.HK) raised the sales up to 4.932 billion yuan, an increase of 52.9% over the previous year.

    Tea growers enjoy China's first portable lithium-ion battery powered energy storage

    05/09/2012 - Yesterday, a portable energy storage powered by lithium-ion battery was connected into the end of the electric distribution network at Gande Town of Anxi County in Fujian province.

    It is reported that this portable energy storage looks like a large ordinary truck with its body painted with orange color; and inside truck, there are two cabinets of power cells, one PCS enclosed transformer, and one monitoring and control panel. The two cabinets of power cells were described to contain 1400 most advanced Lithium iron phosphate batteries, capable of 2 hours continuous discharge at maximum power of 125 kilowatts. It can serve 10 to 15 tea growers simultaneously during the peak time of using electricity for tea processing.

    It is also reported that Anxi distribution network will soon add two more units with 125 kilowatts Max power, 250 kwh and 375 kwh energy capacity respectively.

    BYD's all-electric bus sets foot in Canadian market

    05/09/2012 (Ministry of Commerce) - China's BYD company and Windsor city of Canada inked a deal to supply the city 10 electric buses for public transit. According to the agreement, BYD will set up production facility in Windsor and expect to promote its product in the North American market. Windsor will become the first city using long range all-electric bus in the area.

    BYD said that its electric bus for the export to Ontario is equipped with new generation lithium iron phosphate battery system that contains no heavy metal or toxic electrolyte and does not use any corrosive, making its product the most environment friendly option in the market. BYD company has sold more than 300 all-electric buses globally and has a back order of 1400 in 2012, becoming the largest electric bus manufacturer in the world.

    Grids Interconnection technologies for renewable energy applications may receive government support up to 300 million yuan in 2012

    05/09/2012 (China Security Journal) - "The Twelfth Five-Year special plan for smart grid as a major science and technology industrialization project", announced recently, lists 9 key technologies as the development priorities during the period, including grids interconnection technologies for large scale intermittent renewable energy, electric grids technologies supporting electric vehicle development, and large scale energy storage systems.

    Large scale new energy applications demand grids interconnection technologies for large scale intermittent renewable energy with particular urgency. It is estimated that the grants for the technology supported by this year's "863" special plan would be up to 300 million yuan, said Jiang Xiuchen, an industry expert who is deputy head of panel for "863" smart grids project of Ministry of Science and Technology.

    May 13 1:18 PM | Link | Comment!
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