Friday, December 28, 2007

Yingli group will start thin film solar cell projects

Yingli group recently disclosed their thin film solar cell production plan, and they plan to set up one new sub company to produce thin film solar cell. The initial investment is 350 million RMB, and the total investment will be about 1 billion RMB. The first phase project production capacity will reach 500MW, and the production capacity will reach 2000MW by 2017.

Suntech Recognized for Exceptional Product Quality Control by China's National Quality Administration

Only Chinese Solar Company to Have Received Export Inspection Exemption

SAN FRANCISCO, Calif., Dec. 27 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP) one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that Suntech has been granted National Export Inspection Exemption by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of the People's Republic of China. The export inspection exemption is China's highest honor awarded to companies that demonstrate exceptional internal product quality management and control. Suntech is the first Chinese solar company to receive this national recognition.

Since Suntech made the initial application for the export inspection exemption in January of 2006, numerous provincial and national quality representatives have conducted extensive reviews of Suntech's quality procedures which have led to ongoing quality process evolution and improvement. On December 2, 2007 Suntech successfully passed the final product quality control system inspection conducted by a team of specialists from the AQSIQ and fulfilled all the requirements for the inspection exemption. AQSIQ will continue to regularly inspect Suntech's quality procedures to ensure that this high quality standard is maintained. In addition to the Chinese export inspection exemption, Suntech has already received international product and quality standard accreditation including IEC61215: 1993, ISO 9001:2000, UL, TuV and CE.

"This national recognition reflects Suntech's steadfast commitment to exemplary quality control and our determination to exceed local and international quality standards," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "With well over 90% of our solar cells and modules sold and installed outside of China, in more than 15 countries world-wide, it is imperative that we ensure a consistent and reliable solar product that can generate electricity in a wide range of environments, applications and weather conditions. Product quality is one of the fundamental building blocks of this industry, and as Suntech progresses towards multi-gigawatt production, we will continue to take steps to improve the performance, quality and durability of our solar products and set benchmarks for the industry."

Suntech's Quality Control (QC) team consists of over 600 personnel. The QC system incorporates a comprehensive set of controls including sample testing of all materials procured, regular equipment maintenance, manufacturing environment control, quality process ownership, quick response hot spot identification and eradication, and product testing at all critical steps of the manufacturing process. In addition, Suntech is currently exploring a number of initiatives to further improve quality control including increased production automation and adoption of advanced product tracking technologies. Suntech offers industry leading product power output guarantees of 25 years.

Suntech has taken a leading role to improve product quality in the solar industry through regular consultation with industry bodies and discussion with peers that operate at all stages in the solar value chain. In December 2007 Suntech held the 2007 Chinese PV Industry International Competitiveness Forum on behalf of the China Renewable Energy Association. The Forum brought together a diverse group of Chinese and international solar professionals to discuss Chinese PV companies' participation in the international solar industry and collective initiatives to advance manufacturing techniques, improve industry standards and support ongoing solar innovation.

China promises investment in renewables

BEIJING, Dec. 26 (UPI) -- China promised Wednesday to step up development of renewable energy, the official Xinhua news agency reported.In an effort to help curb emissions, the government has vowed to promote hydroelectric, nuclear, solar and wind energy, as well natural gas extracted from garbage dumps and coal mines.

In the country's first white paper on its energy conditions and policies, Beijing pledged to give top priority to developing renewable energy.

"China's energy development emphasizes thrift, cleanness and safety," says the white paper titled "China's Energy Conditions and Policies."

The share of renewable sources in China's energy consumption rose from 4 percent in 1980 to 7.2 percent last year, according to the paper. However, it notes that the energy structure is still largely based on coal, and will be for a long time.

"China will pay more attention to the clean utilization of energy resources, especially coal, and make it a focus of environmental protection," the paper said. "As a responsible developing country, China attaches great importance to environmental protection and prevention of global climate change."

Thursday, December 20, 2007

LDK Solar's 3rd-Qtr Profit Skyrockets

2007 The Associated Press

NEW YORK — Chinese solar wafer maker LDK Solar Co. Ltd., which went public in the U.S. in June, said Wednesday its third-quarter profit leaped 40 percent on strong demand for its wafers and the expansion of its customer base.

But investors weren't impressed and the company's American Depository Shares tumbled $2.11, or 3.2 percent, to $64 in aftermarket trading, after falling $3.89, or 5.6 percent, to $66.11 in the regular session.

For the three months ended Sept. 30, LDK earned $41.6 million, or 37 cents per American Depository Share, compared with $5 million, or 4 cents per American Depository Share, for the same quarter in 2006.

Revenue soared more than five-fold to $158.7 million from $31.5 million in the year-ago period.
Analysts polled by Thomson Financial expected a profit of 37 cents per share on $143.2 million in revenue.

LDK officials said wafer demand remained strong throughout the quarter and the company signed four long-term wafer supply contracts during the period.

LDK Solar Expects to Meet Capacity Goal

2007 The Associated Press

NEW YORK — Chinese solar wafer maker LDK Solar Co. Ltd. on Wednesday issued a fourth-quarter revenue projection well ahead of current Wall Street predictions and said it remains on track to meet its capacity goal for the year.

LDK said it expects to post a fourth-quarter profit of 40 cents to 43 cents per American Depository Share on $180 million to $185 million in revenue.

Analysts polled by Thomson Financial expect a profit of 41 cents per American Depository Shares on $167.5 million in revenue.

The company also said it expects wafer shipments to total between 87 megawatts and 92 megawatts and remains on track to meet its wafer production capacity goal of 400 megawatts by the end of 2007.

LDK American Depository Shares tumbled $2.11, or 3.2 percent, to $64 in aftermarket trading, after falling $3.89, or 5.6 percent, to $66.11 in the regular session.

China Sunergy Names Kenneth Luk as Chief Financial Officer

December 19, 2007: 07:30 AM EST

NANJING, China, Dec. 19 /Xinhua-PRNewswire/ -- China Sunergy Co., Ltd , a specialized solar cell manufacturer based in Nanjing, China, announced today that it has appointed Mr. Kenneth Luk as its new Chief Financial Officer ("CFO") with immediate effect.

Mr. Luk brings over 20 years experience in finance and accounting to his new position, having previously worked at Motorola Semiconductors for 14 years and most recently for 3 years for Freescale Semiconductor. Mr. Luk began his career with HSBC, where he worked for 7 years as Resident Officer.

"I am delighted that Kenneth Luk is joining our team and we are all pleased to welcome him aboard," commented Mr. Allen Wang, Chief Executive Officer of China Sunergy. "Kenneth offers a broad wealth of experience as reflected by his previous roles at Motorola Semiconductors and Freescale Semiconductor, and he is joining us at an exciting time. I strongly believe that his skills and experience will benefit us enormously."

At Motorola, Mr. Luk was first employed as the Credit Manager of the Asia Pacific Semiconductor Product Sector before being promoted to Credit and Marketing Finance Controller in 1994 and further promoted to become the Asia Sector Controller in 2002. After being spun-off from Motorola in 2004, the Semiconductor Product Sector became an independent company and changed its name to Freescale Semiconductor, where Mr. Luk was employed as the Asia Corporate Controller. In that capacity, he was in charge of all corporate finance and accounting activities in Asia including fiduciary and corporate governance, financial reporting and SOX compliance, corporate tax, cost accounting and credit management, as well as all transactional accounting activities.

Mr. Luk remarked: "I am honored to be appointed as the CFO of China Sunergy and look forward to working closely with Allen and my other colleagues. The Company is entering an important stage of development and I believe that my experiences will be able to strengthen what is an already strong management team."

Mr. Luk received his Bachelor of Arts in Economics from the University of Toronto and his MBA from York University.

About China Sunergy Co., Ltd.

China Sunergy Co., Ltd. ("China Sunergy") is a leading manufacturer of solar cell products in China as measured by production capacity. China Sunergy manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. China Sunergy sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets. For more information please visit .

Wednesday, December 19, 2007

JA Solar Inks New Wafer Supply Agreement With ReneSola

December 18, 2007: 08:17 AM EST

HEBEI, China, Dec. 18, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar," "the Company") (Nasdaq:JASO) today announced that it has signed a new wafer supply agreement with ReneSola Ltd. ("ReneSola") (LSE:SOLA). Under the new agreement, ReneSola will supply an additional 600MW of wafers to JA Solar from 2008 to 2013. This latest agreement is in addition to the 60MW wafer supply agreement with ReneSola the Company announced in September 2007.

About JA Solar Holdings Co., Ltd.

Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit

Solar EnerTech Enters Into Sales Contract With Sky Solar

December 18, 2007: 08:00 AM EST

Solar EnerTech Corp. (OTCBB: SOEN) (the "Company") today announced that it has entered into a sales contract with Sky Solar (Hong Kong) International Co., Ltd., a subsidiary of Sky Global Group to distribute solar modules. Sky Global Group is a global distributor and system integrator of solar panels.

The total shipment to Sky Solar under the contract amounts to approximately US$21.8 million. Shipments, aimed for solar power installations in Spain, are scheduled to be delivered over a 5-month period beginning in December 2007, with the majority of solar module shipments scheduled for the Company's 2008 fiscal second quarter.

Mr. Leo Young, Chief Executive Officer of Solar EnerTech commented, "We are quite pleased to commence shipments of our solar modules to one of the largest solar system integrators in Europe. This sales order is our largest to date and will provide us with stronger revenue growth in the first half of fiscal 2008. This contract demonstrates that our solar modules meet the quality standards of leading solar system integrators and distributors around the world. We welcome this growth opportunity to increase our presence in the global solar market."

About Solar EnerTech Corp.

Solar EnerTech is a photovoltaic ("PV") solar energy cell manufacturing enterprise based in Shanghai, China, where the Company has established a sophisticated, 42,000-square foot manufacturing plant in Shanghai's Jinqiao Modern Technology Park. Currently, the facility is capable of producing 25Mw of solar cells from its existing production line. The Company plans to install a second 25 Mw production line to better utilize the capacity of the plant and to meet expected future customer demand.

Solar EnerTech has also established a Joint R&D Lab at Shanghai University to research and develop higher-efficiency cells and to put the results of that research to use in its manufacturing processes. Led by one of the industry's top scientists, the Company expects its R&D program to help bring Solar EnerTech to the forefront of advanced solar technology research and production. The Company also has a marketing, purchasing and distribution arm in Northern California's Silicon Valley.

Suntech Chairman and CEO Dr. Zhengrong Shi Named China's 2007 Green Person of the Year

December 18, 2007: 08:00 AM EST

SAN FRANCISCO, Calif., Dec. 18 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that Dr. Zhengrong Shi, Suntech's Chairman and CEO, has been named one of China's Green Persons of the Year for his outstanding contribution to environmental protection initiatives and environmental awareness within China. The award was presented to Dr. Shi and eight other recipients at a ceremony held in Beijing on December 14, 2007.

The national award, sponsored by seven Chinese government institutions including the State Environmental Protection Administration, Central Propaganda Department, National Environmental Protection Committee, Population, Resources and Environment Committee of the CPPCC, Ministry of Culture, State Administration of Radio, and the Chinese Communist Youth League and supported by the United Nations Environmental Program, is China's highest honor for those that make exceptional contributions to environmental protection. Dr. Shi and eight others were chosen to receive the award after a nationwide selection process that combined results from internet polling, media surveys and opinions from a panel of experts.

"I am honored to receive this national accolade for environmental protection," said Dr. Zhengrong Shi. "The increasing symptoms of climate change are a concern not just for China, but the entire world and I believe that it is our responsibility, both as individuals and as corporations, to proactively support initiatives that conserve our environment and encourage sustainable development. I have no doubt that solar power will play a critical role in this broader environmental conservation movement, and Suntech will continue to drive technology advancements to reduce cost and facilitate the widespread adoption of solar power."

Suntech plays a leading role in the development of green initiatives in China through sponsorship of environmental protection programs, participation in the design and installation of solar projects, and continuous education of Chinese constituents. Dr. Shi personally devotes over 20 percent of his time to meeting with Chinese government officials, business leaders, academics and citizens to build awareness about climate change and global warming.

Suntech's commitment to the highest standards of resource conservation and environmental protection extend to its own facilities. Suntech is currently constructing its new headquarters in Wuxi, China which will incorporate a wide variety of environmentally friendly architectural techniques including geothermal heating, convection cooling, extensive use of natural light, rain water recycling, and a 1MW solar fa?ade that are designed to ensure that the building will generate 85% of its energy needs from renewable sources.

Tuesday, December 18, 2007

China Polysilicon Project Scan

2007 witnesses the hot investment of polysilicon production in China, over 10 new polysilicon projects were started in 2007, and there are more planned polysilicon projects in China. Tell you the truth, most of these polysilicon investors do not have any experience in producing polysilicon.

The polysilicon production output in 2006 was just 287 tons in China, and it is estimated the output will be about 1000 tons in 2007.

If all the started polysilicon projects could be completed as scheduled, the polysilicon production capacity will exceed 30,000 ton per year by the end of 2008 if we just add the planned production capacity together. But in general it will take these Chinese producers 2 or 3 years to fulfill their production capacity after they build the factories and have the production equipments at their factory, since it will take time for them to master the production technologies and train the engineers and workers.

My expected production output for 2008 is 3,000 tons, for 2009 is 10,000 tons and for 2010 is 20,000 tons.

The polysilicon production investment is overheated in China, and the margin for the investors will not be as high as expected since there are too many projects already and it will take them several years to fulfill the production capacity after they complete the facility construction, and several years later the polysilicon price will come down also.

Polysilicon production is lucrative at present, but only a few investors can make money from the polysilicon production, others will lose.

Monday, December 17, 2007

Yiling Group Building 400MW Solar Cell Plant

Monday, December 17, 2007;

BAODING, Dec 17, 2007 (SinoCast via COMTEX) -- China's leading photovoltaic product manufacturer Yingli Group kicked off the construction of 400MW-polysilicon cell plant, which is built by its two arms Yiling Green Energy Holding Co., Ltd. and Yiling Energy (China).

The new project, involves total investment of CNY 2.8 billion, will enable Yingli Group to have the world's most advanced solar cell production line. After it completes construction in March 2009, the project is estimated to generate production value of CNY 10.08 billion, and profits of CNY 4.03 billion.

Notably, New York-listed Yingli Green Energy has finished the three phases of construction by June 2007 and now has annual production capacity of polysilicon ingots, wafers, PV cells and PV modules of 200MW each.

Headed in Baoding, Hebei Province in Northern China, Yingli Group is a fast-growing group extending reaches into various fields. Given the solar photovoltaic sector is an emerging industry around the world, the group has spent huge money and effort building up a complete industrial chain to be a front-runner in China.

LDK Solar says completed independent audit investigation; finds no errors

December 17, 2007: 04:21 AM EST

XINYU CITY, China, Dec. 17, 2007 (Thomson Financial delivered by Newstex) -- LDK Solar Co Ltd (NYSE:LDK) said its audit committee has completed an independent investigation into allegations made by a former employee that it incorrectly reported its inventories of silicon feedstock, as evidenced by an alleged discrepancy in its inventory on Aug 31.

LDK said the investigation found no material errors in its stated silicon inventory quantities, and concluded the allegations of an inventory discrepancy were incorrect as they had not taken into account all locations in which the company stored its silicon feedstock.

The investigation further concluded that LDK is using each of its various types of silicon feedstock in the production of its multicrystalline solar wafers, and that a provision for obsolete or excess silicon feedstock is not required, the company said.

LDK also noted it expects to release its financial results for its third fiscal quarter 2007 following the NYSE market close on Wednesday, Dec 19.

Sunday, December 16, 2007

Suntech Power Chairman: Poly-Si Investment Misfits China

Friday, December 14, 2007;

WUXI, Dec 14, 2007 (SinoCast via COMTEX) -- Shi Zhengrong, chairman of Wuxi Suntech Power Co., Ltd. (NYSE: STP), one of China's solar energy giants, announced on December 12, 2007 that polysilicon investment was not suitable for the nation.

Currently, more investors are swarming into the Chinese photovoltaic (PV) industry. Meanwhile, the domestic polycrystalline silicon market receives extremely overheated investment.

"As a matter of fact, it is not practical for China to produce polysilicon, mainly due to such a high electricity charge," said the chairman. "Therefore, I suggest that investors should seek more development opportunities in Canada, the US, Australia, and other countries with a lower electricity charge."

Recently, the silicon materials prices are on the surge, and a large amount of the nation's capital was injected into the polycrystalline silicon field.

Two weeks ago, Baoding Tianwei Baodian Electric Co., Ltd. (SHSE: 600550) announced that its holding subsidiary Sichuan Xinguang Silicon Co., Ltd. would create two 3,000-ton polysilicon projects in the southwestern Chinese cities of Chengdu and Leshan, respectively.

Two newly incorporated ventures there will be responsible for the projects above with a total investment of about CNY 2.675 billion, said people familiar with the matter.

Several days later, Jiangxi LDK Solar Hi-Tech Co., Ltd. (NYSE: LDK), a domestic polycrystalline silicon wafer magnate, declared the start-up of its new polysilicon factory located in the southern Chinese city of Xinyu, Jiangxi Province.

It is predicted to complete the project with an annual production capacity of 6,000 tons at the end of 2008, according to the company's timetable.

The new project is part of LDK Solar's 15,000-ton silicon material plan, which draws a total investment in fixed assets of more than CNY 12 billion, is forecasted to turn into one of the world's solar power projects with most investments and biggest designed production capacity.
LDK Solar is to develop into one of front-runners in the global polysilicon field, after putting all projects into production in 2009 and forming a 15,000-ton production capacity.

Meanwhile, the LDK Solar project will contribute a lot to the fast and steady growth of China's PV industry. It can not only effectively cover the shortage of raw materials supply, but also largely cut the competitive edge of the sector above.

"Presently, the total production capacity of China's companies, who are ready for polysilicon projects, reaches 30,000 tons," the domestic PV expert Mr. Wang Sicheng said anxiously. "It is hard to say whether the heating investments in PV markets is good news or not."

China Sunergy to Supply Asola With Cells

Associated Press December 14, 2007

China Sunergy Co. said Friday it has agreed to supply Asola Advanced and Automotive Solar System GmbH with solar cells worth 10.2 megawatts of annual generating capacity.

Terms of the agreement were not disclosed. China Sunergy will deliver the products during 2008, and both parties will explore further agreements through 2012.

"As we look to develop our business in new markets such as the U.S., Italy and Spain we would like to double or even triple our purchase volumes from China Sunergy each year," said Asola Chief Executive Reinhard Wecker.

The companies said they would like to further expand geographically _ China Sunergy in Europe and Asola in the U.S., Italy and Spain. China Sunergy is a Nanjing, China-based solar-cell maker, and Asola is a German manufacturer of solar-power systems.

China Sunergy is targeting production of 160 megawatts to 170 megawatts worth of solar cells next year. A one-megawatt plant running continuously at full capacity can power 778 households each year, according to the U.S. Department of Energy. Solar technology has lower capacity than other technologies because its power generation is constrained by availability of the sun.

Friday, December 14, 2007

China listed firms invest 15.6b yuan in new energy

By Shangguan Zhoudong ( 2007-12-12 14:34

A total of 25 Chinese listed companies have invested 15.6 billion yuan ($2.11 billion) so far this year in new energies, including the wind energy, solar energy and coal chemical industries, the China Securities Journal reported today.

Guizhou Chitianhua Co Ltd invested a combined 5.58 billion yuan in new energies, the highest of the 25 listed firms.

Shanghai Aero Auto Electromechanical and Baoding Tianwei Baobian Electric Co have poured 1.9 billion yuan and 1.48 billion yuan respectively into the new energy sector.

The three publicly-traded companies' investment into new energies accounted for 57.25 percent of the 25 listed firms' total, statistics show.

The 25 firms include eight electricity-related enterprises, six electric equipment companies, and four chemical firms.

As price of crude soars, the new energy sector is gaining momentum. The World Energy Council says the global new energy market will reach $2 trillion by 2020, and wind power, solar energy, ethanol, and biofuel will become mainstream investment targets.

Additionally, new energy is one of the main focuses of China's 11th Five-Year Program (2006-10). The industry is likely to see rapid development, enjoying supportive policies.

In terms of energies, a combined 2.57 billion yuan was invested into wind power, accounting for 16.41 percent of the total; 7.49 billion yuan into the coal chemical industry, representing 47.89 percent; 4.66 billion yuan into solar energy; and 746 million yuan into battery firms.

Goldwind Science and Technology Co Ltd, China's leading wind energy equipment maker, is planning to list on the Shenzhen Stock Exchange. The firm's estimated sales revenue for 2007 is 3.24 billion yuan, with a considerable net profit of 601 million yuan.

New energy stocks are also performing better on China's stock market. The Shanghai Composite Index has declined 2.49 percent since November 21, but the 25 listed firms added 16.68 billion yuan in capitalization, or 6.49 percent, in the same time period.

Earlier this month, a draft of the energy law was officially published for public comment. The new law is expected to put China's energy management onto a legal track and help China better safeguard its energy security.

The draft energy law has 15 chapters and 140 articles that define energy management, strategy, development, supply, storage, and conservation. The law will also cover energy technology, international cooperation, fiscal and tax policies, and other issues.

Future Looks Bright for the China Photovoltaic (PV) Battery Industry as Solar Energy Goes Mainstream

DUBLIN, Ireland--(BUSINESS WIRE)--Research and Markets ( has announced the addition of China Photovoltaic (PV) Battery Industry Report, 2007 to their offering.

PV industry witnessed a rapid growth, and in the future it will have a nearly limitless outlook. During the ten years from 1996 to 2006, yield of solar batteries in the world has increased by 26 times with an annual compound growth rate of 38%. Besides, annual installations of solar batteries have increased by 22 times with annual compound growth rate of 36%. Such a growth is too speedy to compare for any other industries except for the semi-conductor industry. Though Germany is today's largest PV market, but solar power generation there still takes a low proportion of 0.5%. But solar energy will undoubtedly become one kind of mainstream energy; therefore, its market will witness a bright prospect in the long term.

From 2020 to 2030 solar energy will enter into the mainstream energy market on a large scale. Technical progress together with scale effects will steadily reduce the cost of PV batteries. Curve figures of PV industry in the past 40 years have shown that cost will down 15-20% once accumulated sales volume of PV batteries is doubled. Meanwhile, power generation cost with fossil fuel has been increasing for a long term. We estimated here by different geographic locations, that solar power generation cost in developed countries will approach electricity prices for the peak period from 2010 to 2030; and it will approach average electricity prices from 2020 to 2050.

Promotion from governments will still be the leading strength for industry development in the short run. Undoubtedly, The government plays a key role in boosting PV industry. Europe, USA and Japan all have recognized the importance of strategy to develop PV industry and they all have plans of their own. But the real development of the industry usually doesn't fit well with these plans. It's believed that existing policy in each country has established gigantic potential demands; and decline in growth speed in 2006 is caused by that growth of battery price has restrained demands. Therefore, as long as battery prices properly decline, growth of installed capacity can exceed 30%.

China PV industry focuses more on midstream and downstream businesses; and it will confront with considerable inconveniences on entry into upstream polysilicon business. China PV batteries list the 3rd in the world by production capacity; however, polysilicon raw materials and markets all lie in overseas market and domestic industrial structure is very irrational. Now market competition is fiercer and fiercer, and competitiveness of Chinese enterprises still lies in the cost. Undoubtedly, advantages for leading enterprises with long-term polysilicon orders will be enlarged; while enterprise with no strengths will be eliminated. Many investors are attracted by the huge profits. However, very few projects can really bring economic profits.

It is believed in the next few years, companies with sufficient polysilicon supply and manufacturers of amorphous silicon PV battery would obtain broad development space. As for crystalline silicon PV battery producers, only the strong can survive competition and gain more strength. Therefore PV enterprises with international resource and internet strength will particularly develop well. Film PV battery companies industrialized will enjoy a greater developing space, which will naturally draw much interest from investors.

1 Solar Energy is the Inevitable Energy Choice
1.1 Only Solar Energy can satisfy Future Energy Demands
1.2 Solar Energy is to enter into Mainstream Energy Market in 2020-2030
2 Supply and Demand Analysis on Global PV Market
2.1 Governments will still be the Leading Strength to boost Industry Development for a medium and long term
2.2 Existing Policies will boost Rapid Development of PV Market
2.3 Active Production Expansion by Battery Manufacturers, and Ample PV Batteries Production Capability
2.4 Polysilicon Supply Crisis is to start loosing at the end of 2008
3 PV Industry Chain
3.1 Pyramid Distribution has brought advantages of Upstream Enterprises
3.2 Competition Status
3.3 Optimization of Industry Chain will bring Cost Decline
4 China Solar Energy Industry
4.1 Most Enterprises Invested in Polysilicon
4.2 Difficulties in Starting China Market in the next few years
4.3 Relevant Listed Companies
Selected Charts
For more information visit

Wednesday, December 12, 2007

Polysilicon spot prices skyrocket as China PV cell makers scramble for supply

Nuying Huang, Taipei; Rodney Chan, DIGITIMES [Tuesday 11 December 2007]

Polysilicon prices in the spot market have broken the US$400-per-kilogram mark as photovoltaic cell makers from China are scrambling to stock material, according to industry sources.

The sources claimed that only players from the PV industry in China have been willing to pay such high prices, while many of their Taiwan competitors think the high costs would definitely translate into inevitable losses.

Chin-Yao Tsai, general manager of Taiwan-based PV cell maker E-ton Solar Tech, confirmed that spot prices for polysilicon have skyrocketed to US$400 per kilogram. He speculated that buyers that are willing to pay such high prices must be coming under pressure from their increased capacity, anticipating further rises in solar grade prices, or trying to boost sales to facilitate their listing plans.

The industry-wide material shortage has been driving prices up. The sources disclosed that two Taiwan-based PV cell makers and one China-based competitor have recently bought scrap wafers for US$300 per kilogram.

Currently chief suppliers of polysilicon include Hemlock, Wacker, Renewable Energy Corporation (REC), MEMC Electronic Materials, Tokuyama, and Sumitomo. Only three of them may regularly sell polysilicon in the spot market, the sources said.

According to the industry sources, polysilicon spot prices reached US$280 per kilogram in the third quarter of 2006, and US$300 the next quarter. Prices remained at US$300-330 in the first half of 2007, with many makers thinking there would be little chance for the prices to go up further sharply.

But demand turned even stronger in the third quarter with more PV cell capacity being ramped up. Prices went up to US$340 per kilogram in the third quarter, to US$360-370 in early fourth quarter, and to US$400 in December.

Qiangsheng to invest $400 million for thin film solar cell production

By Chen Qide (China Daily)
Updated: 2007-12-11 09:40

Nantong in northern Jiangsu Province is set to become one of China's key thin-film amorphous silicon solar cell manufacturing bases after Nantong Qiangsheng Photovoltaic Technology Co Ltd (QS Solar) announced it had launched a $400 million project.

A senior company manager said yesterday that the project, China's largest of its kind, will be carried out in three phases within three years.

The first phase, which consists of three sets of 25 MW production facilities, will see the first set put into operation by mid-January of 2008, Sha Xiaolin, chairman of QS Solar, said.

Sha said the company invested $25 million importing the world's most sophisticated production line from the United States to manufacture 25 MW solar panels.

The other two, which could cost up to $40 million, will be installed next year through risk investment from overseas financial institutions, he said.

Sha said QS Solar planned to list in the US by the end of next year to collect funds for more production facilities.

"We aim to raise funds of $200 million from the US securities market to finance nine 25 MW production lines, which will be installed by 2009," he said.

QS Solar has signed agreements with some foreign banks for funds, but Sha gave no details.

But he said there is "no problem for funds", because the production of thin-film amorphous silicon solar cells was a promising industry.

A company source said the 12 facilities will have the capacity to produce 300 thin-film amorphous silicon photovoltaic solar panels by 2009.

QS Solar plans to increase its production lines up to 20 by 2010 to have a capacity of producing 500 MW thin-film amorphous solar cells. The investment will reach $400 million.

Since 2000, China has witnessed rapid development of its photovoltaic industry, which produced 450 MW solar cells in 2006. The output is expected to increase by 50 percent by the end of 2007.

A report from the United Nations Environment Program said China had the capacity to produce 3,000 MW solar cells, ranking first in the world.

But 95 percent are polycrystalline silicon solar cells and exported overseas because domestic users cannot afford the high price, Sha said.

QS Solar will have a capacity to produce 500 MW solar cells by 2010 with the price will drop from 4 yuan per kWh to 1 yuan.

Yingli Offering Prices at $31 Per ADS

Associated Press | December 11, 2007

Yingli Green Energy Holding Co. Ltd. on Tuesday said its offering of 5.6 million American Depositary shares priced at $31 apiece.

The Chinese solar wafer maker also said its $150 million offering of convertible senior notes due 2012 priced at about 23 U.S.-listed shares per $1,000. That represents a conversion price of about $43.40 per share.

The company has granted its underwriters an option to buy up to an additional $22.5 million worth of notes and 840,000 shares to cover any over-allotments.

Yingli plans to use proceeds from the offerings to pay for additional manufacturing capacity and other corporate purposes.

Credit Suisse Securities (USA) LLC, Goldman Sachs (Asia) LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are serving as joint bookrunners for the offerings, while Piper Jaffray & Co. is serving as co-manager.

Each ADS represents one ordinary share, Yingli said.

Yingli ADS fell $1.56, or 4.6 percent, to $32.04 in morning trading.

Monday, December 10, 2007

Q-Cells gets solar wafer supply deal with LDK Solar

FRANKFURT, Dec 10 (Reuters) - German solar cell maker Q-Cells (QCEG.DE: Quote, Profile, Research) set up a ten-year supply deal for solar wafers with LDK Solar (LDK.N: Quote, Profile, Research) to secure future growth, the company said on Monday.

The contract runs from 2009 to 2018 and the total volume will enable Q-Cells to manufacture cells with an overall output of more than 6 gigawatt peak additional to current expansion plans, it said.

While parts of the pricing of the wafers will be fixed for 2009 and 2010, the fixed pricing element can be adjusted to market conditions thereafter, Q-Cells said. (Reporting by Eva Kuehnen)

Chairman Light DK Peng Receives 'The Most Admired Entrepreneur of 2007' Award

XINYU CITY, China and SUNNYVALE, Calif., Dec. 7 /PRNewswire-FirstCall/ --
LDK Solar Co., Ltd. (NYSE: LDK), a leading manufacturer of multicrystalline
solar wafers, announced that on December 1st, 2007, Light DK Peng, Chairman
and CEO of LDK Solar, was presented with "The Most Admired Entrepreneur of
2007" award at the "Annual Meeting of Chinese Management 2007," held by
YingCai publisher, Sina.Com, at the JW Marriott Hotel. Beijing Youth Daily
Group, the Economic Channel of CCTV, Shangdong TV, and other major media
sources from the Beijing area were in attendance.

In June 2007, LDK Solar, led by Chairman Light DK Peng, listed its stock
on the New York Stock Exchange. Chairman Peng founded the company with the
goal of being a world-class solar wafer manufacturer. The main Chinese media
groups elected Chairman Light DK Peng "The Most Admired Entrepreneur of 2007"
for making an outstanding contribution to the alternative energy industry.

Shi Guangsheng, the Vice Director of Finance and Economics Committee of
National People's Congress, Chen Zuoer, Executive Vice Director of Hong Kong
and Macao State Council offices, and Zhai Huisheng, the Committee Secretary of
National Journalists' Association presented the award to Chairman Light DK

The "Annual Meeting of Chinese Management" was launched in 2001, and this
year focused on identifying the most experienced and successful managerial
talent in China. These leaders were selected for their significant
contributions to enterprise development as well as to their contributions to

Each year, the panel at the "Annual Meeting of Chinese Management"
consists of hundreds of national leaders, including senior officials, domestic
and international business leaders, senior media, and scholar representatives.
The event therefore creates a forum for the most influential executives and
entrepreneurs to promote progressive and conscientious management practices.

About LDK Solar

LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar
wafers, which are the principal raw material used to produce solar cells. LDK
sells multicrystalline wafers globally to manufacturers of photovoltaic
products, including solar cells and solar modules. In addition, the company
provides wafer processing services to monocrystalline and multicrystalline
solar cell and module manufacturers. LDK's headquarters and manufacturing
facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi
province in the People's Republic of China. The company's office in the United
States is located in Sunnyvale, California.

SunPower and Jiawei SolarChina Sign Silicon Ingot Pulling and Wafer Agreement

SAN JOSE, Calif., Dec. 7 /PRNewswire-FirstCall/ -- SunPower Corporation
(Nasdaq: SPWR), a Silicon Valley-based manufacturer of high-efficiency solar
cells, solar panels and solar systems, today announced that it has signed a
five-year agreement with Jiawei SolarChina Co., Ltd. (Jiawei) to secure a
supply of monocrystalline silicon ingots and silicon wafers.

Jiawei is affiliated with SunEnergy, SunPower's solar panel assembly
partner, and plans to scale its operations to 200 ingot pullers in Beijing,
China. Beginning in 2008, SunPower will purchase sufficient silicon in ingot
and wafer forms to satisfy production requirements that represent more than
900 megawatts of solar cell production based on SunPower's expected silicon
utilization during the agreement period and subject to contract conditions.
SunPower will provide polysilicon to Jiawei during the life of this agreement.

"Our partnership with Jiawei will diversify our upstream supply chain,"
said PM Pai, chief operating officer at SunPower Corp. "As we scale and
expand our silicon supply base into China, we are pleased to extend our
relationship with our partner, Jiawei."

About SunPower

SunPower Corporation (Nasdaq: SPWR) designs, manufactures and delivers
high-performance solar electric systems worldwide for residential, commercial
and utility-scale power plant customers. SunPower high-efficiency solar cells
and solar panels generate up to 50 percent more power than conventional solar
technologies and have a uniquely attractive, all-black appearance. With
headquarters in San Jose, Calif., SunPower has offices in North America,
Europe and Asia. For more information, visit
SunPower is a majority-owned subsidiary of Cypress Semiconductor Corp.

Trina Solar gets one-bin USD capital injection

Friday, December 07, 2007; Posted: 01:37 AM

BEIJING, Dec 7, 2007 (Xinhua via COMTEX) -- Trina Solar Limited (TSL.NYSE), a Chinese private company in the solar energy industry, announced on December 6 that the company had been committed a capital injection of one billion US dollars from the government of Lianyungang, a port city in east China's Jiangsu Province.

This will help the company achieve a 10,000-ton polycrystalline silicon production capacity by the end of 2012.

In the third quarter of 2007, Trina Solar realized an operating turnover of 82.60 million dollars, slightly lower than the expected 82.80 million dollars, according to the company's Q3 financial report. Its Q3 gross margin reached 20.1 percent, down 6.1 percentage points year on year.

For strong market demand, the company is optimistic about its performance in 2008.

Friday, December 7, 2007

Neo Solar Power secures NT$4 billion syndicated loan

Nuying Huang, Taipei; Emily Chuang, DIGITIMES [Friday 7 December 2007]

Neo Solar Power on December 6 announced that it has signed syndicated loan of NT$4 billion (US$123 million) with five banks to fund its expansion and materials procurement.

Frank Huang, chairman of Neo Solar and Powerchip Semiconductor Corporation (PSC), commented the performance of Neo Solar Power is the best among the PSC Group. The company had an annual output of 36MWp in 2007 while capacity for the full year of 2008 is already nearly fully occupied, Huang added.

Neo Solar Power CEO KS Lin added that the company has a capacity of 60MWp at present. With a new plant to come on board in 2008, annual capacity and annual output will reach 210MWp and 150MWp, respectively.

Nearly 70% of Neo Solar's materials will be supplied on a contract basis for the next two years, pointed out Lin. China-based supplier LDK Solar has agreed to settle orders with the company based on new pricing in 2010 as the company plans to enter polysilicon production, noted industry sources.

The company is also preparing a NT$3 billion fund raising project which will be carried out at the end of the year or next year, according to market sources. The industry watchers estimated that the company will see its annual revenues triple to NT$14 billion in 2008.

ZTE fires billion-yuan shot at energy revenue

ZTE Corp, three of its sister companies and its chairman have invested 1.29 billion yuan (US$174 million) to expand into the energy sector, the Shenzhen-listed company said yesterday.

ZTE, China's biggest public trade telecom equipment company, told the Shenzhen Stock Exchange the associates will establish a joint venture.

ZTE will pay 300 million yuan for 23.26 percent of the JV and Chairman Hou Weigui will take a 1.55-percent stake.

Two associated companies, Zhongxing WXT and Zhongxing Development, will each take a 23.26-percent stake for 300 million yuan and ZTE International will pay 370 million yuan for 28.67 percent, making it the biggest shareholder in the JV called Zhongxing Energy Ltd, ZTE said.

"By forming the JV, the group can further enhance its external investment structure, increase its investment return and develop new profit-generating business," ZTE said in its statement to the exchange.

The scope of the new company covers research and development, investment, generation and sales in the area of energy business.

ZTE's share price rose 2.1 percent to 49.68 yuan against a 3.14-percent jump in the Shenzhen Composite Index yesterday.

China's renewable energy market has the biggest long-term growth potential in Asia.

Market revenue from renewable energy, including wind, biomass and solar, may exceed overall growth by more than 20 percent until 2020, because of the high level of support from the Chinese leadership, according to Merrill Lynch, a US-based investment bank.

ZTE's focus, however, will remain on telecommunications.

ZTE was the biggest winner in the latest 3G network equipment bid from China Mobile, industry insiders said.

ZTE generated a net profit of 603 million yuan in the first nine months, 45.92 percent growth year-on-year, while global giants such as Ericsson reported a decline in profit in the third quarter.

ZTE said yesterday it has an order from China Netcom to supply an IPTV (Internet protocol TV) system in the northern Dalian city, based on homegrown IPTV technology.

(Shanghai Daily December 6, 2007)

Trina Building $1B Polysilicon Plant

Trina Agrees to Develop $1 Billion Polysilicon Plant by 2012
December 05, 2007: 10:01 AM EST

NEW YORK (Associated Press) - Solar-products maker Trina Solar Ltd. said Wednesday it agreed to develop a $1 billion polysilicon plant by 2012 with assistance from the local government in the China's Jiangsu Province.

Trina expects to spend $150 million next year to finance the initial phase, the scale of which was trimmed from $455 million to create 3,858 tons of capacity. Trina did not say how much capacity is now targeted for the initial phase.

The company is "examining several alternatives" to lessen the impact of project financing on earnings, Chief Executive Jifan Gao said in a statement.

The Lianyungang Municipality will supply land and electric power for the facility, which is expected to have annual production capacity of 11,023 tons by the end of 2012.

By creating its own polysilicon plant, Trina will reduce its reliance on a tight market for the key solar-product feedstock for which prices have risen dramatically.

The company recently said its planned production output will be used for Trina Solar's own feedstock requirements and will only meet part of the total expected feedstock requirements to support future anticipated growth. Trina Solar said it will continue to be a net purchaser of feedstock materials and will continue to work with its long-term polysilicon supply partners.

trina Solar shares rose $4.17, or 8.5 percent, to $53.15 in morning trading.

Tuesday, December 4, 2007

Canadian Solar to privately offer $75 million of notes

Nov 30 (Reuters) - China's Canadian Solar Inc (CSIQ.O: Quote, Profile, Research) said it plans to make a sell about $75 million of its convertible senior notes due 2017 in a private offering.

The maker of solar modules that convert sunlight into electricity said it intends to grant the initial purchaser an option to buy up to an additional $11.25 million in total principal amount of the notes to cover overallotments.

LDK Shores Itself with New Silicon Supply

Under fire for alleged discrepancies in its polysilicon inventory, the company says the deal will help it meet next year's production and says construction of a new polysilicon plant also is on track.

by: Jennifer Kho
November 30, 2007

LDK Solar (NYSE: LDK) announced Friday it had signed agreements for 312 metric tons of silicon to be delivered next year.

Advertisement "We believe that this supply contract will help LDK achieve our wafer production and growth targets for 2008," said Nick Sarno, senior vice president of manufacturing at LDK, in a written statement.

The company also said it has begun construction on its own polysilicon plant in Xinyu City, China. The plant is on schedule to reach up to 6,000 metric tons of production capacity by the end of 2008, the company said.

LDK shares grew 8.5 percent to close at $29.55 per share Friday.

But they are still worth less than half of their peak value of $76.75 per share, set in September.

The company is facing allegations of discrepancies in its silicon inventory from a former financial controller, Charley Situ, as well as an investigation from the U.S. Securities and Exchange Commission (see LDK Says Inventory Discrepancy Allegations Have 'No Merit', New Details Surface as LDK's Stock Continues to Plunge, LDK Says SEC Is Inquiring Into Inventory Discrepancy Allegations).

Although unrelated to the silicon inventory in question, the new silicon supply is undoubtedly good news for LDK in the midst of a worldwide shortage of solar-grade silicon.

Other companies also have been scrambling to lock up more of the precious stuff.

German solar-cell manufacturer ErSol said Friday it signed a deal to buy 300 megawatts worth of silicon from Wacker Chemie, in a nine-year deal starting in 2010.

Earlier this week, Yingli Green Energy Holding Co. and Solarfun Power Holdings announced silicon contracts, while SunPower said it would open the largest silicon ingot-pulling factory in Korea (see Solar Scrambles for More Silicon).

But at least some LDK investors appear to be waiting to hear the results of an independent audit of LDK's silicon inventory before deciding whether to forgive the company.

Earlier this month, the company said the audit committee expects to report its findings early next month (see Chinese Solar Gets a Boost). LDK said it is waiting for those results before it discloses its third-quarter earnings (see Solar Stocks Bounce After Hitting Bottom).

As a foreign company, LDK only is required to file earnings with the SEC once per year. Otherwise, the company would have been required to file third-quarter earnings several weeks ago.

In October, the company estimated that revenue for the third quarter would be between $140 million and $150 million, with fourth-quarter guidance of $165 million to $170 million in revenue and 37 cents to 41 cents per share in profit.

Venture investment in China's cleantech industry promising but challenges remain - industry insiders

By Jing Yang

Beijing. December 4. INTERFAX-CHINA - Despite the optimism expressed by venture investors in China's cleantech industry at a forum held in Beijing yesterday, investors maintain that various challenges still need to be resolved if further large-scale development of the industry is to go ahead.

Cleantech involves services and products that apply technologies ranging from alternative forms of energy generation, such as wind, solar power and biofuel, to smart materials and water treatment, with the ultimate aim of improving efficiency and productivity while limiting ecological harm.

Cleantech is ranked the third largest recipient category for venture capital investment in China at present, led only by information technology and communications, according to a report compiled by Cleantech Network LLC, an organization comprised of industrial investors, entrepreneurs, service providers and policy makers.

The cleantech industry in China will see robust growth in the future for two key reason, according to Christoph Loeslein, CEO of the energy and environment division of London Asia Capital, a UK-based but Asia-focused investment company.

Loeslein said that government-set targets to improve energy efficiency and reduce carbon emissions will lead to potentially huge domestic demand, while Chinese companies can also become major cleantech exporters, especially in global markets with high demand like wind power, as their technologies mature.

However, China is significantly lacking investment in basic research and development, which will bottleneck the industry's further development, Loeslein said.

This view was echoed by Gary Rieschel, managing director of Shanghai-based Qiming Venture Partners, who said that the creation of a sound intellectual property protection system is essential for bringing in more foreign alternative energy and water treatment technologies, as well as encouraging greater local innovations.

Riesechel said however that planting the seeds of innovation is a gradual process, and that it took the United States 15 to 20 years to achieve similar goals. "We need to make the urgency of innovation heard, but we also need to be patient," Rieschel said.

At the same time, the Chinese government is very conservative when it comes to foreign investment, by only allowing foreign partners to hold minority stakes in most joint ventures, and disallowing individual companies from deciding their own sharing holding structures, Rieschel said.

The rapid development of renewable energy seen in some European countries, such as wind and solar power in Germany, has been coupled with long-term and stable incentive systems created and maintained by national governments, London Asia Capital's Loeslein said. More work is still needed to put such systems in place in China, Loeslein said, adding that with the resulting guaranteed profit margins, foreign investors would be more interested in putting money into China's cleantech industry.

China's lack of water resources will likely delay the development of some projects in the domestic cleantech industry that require large amounts of water, such as hydropower and clean coal, Frederick Long from Olympus Capital said.

The importance of such resource scarcity was highlighted by the fact that both the Cleantech Network report and industry insiders agreed that water treatment and energy efficiency projects have the greatest potential to become the leading investment category for cleantech in China.

Total cleantech venture investment in China will reach approximately $600 million in 2007, and is expected to surpass $700 million in 2008. Venture investment in water-related cleantech could reach $100 million in the Chinese market next year, while energy-related venture capital is likely to climb to $500 million, according to the Cleantech Network report.

China aims to cut energy consumption per unit of GDP by 20 percent by 2010, or 4 percent annually, as well as emissions by 10 percent for the targeted period. The country reduced its energy consumption per unit of GDP by just 1.23 percent last year, only one-third of its original target.

However, Qiming Capital's Riesechel believes that it will matter little whether or not China hits such targets, as investment will continue to flow into China's cleantech industry as long as such targets are in place.