China's Suntech to set up U.S. factory

Mon May 11, 2009

LOS ANGELES (Reuters) - Chinese solar panel maker Suntech Power Holdings Co Ltd on Monday said it plans to establish a manufacturing facility in the United States, though it has yet to choose a location.

The company said it is exploring opportunities in several states as it seeks to expand its presence in the U.S. solar market. It plans to make a decision on the location in the next six months.

Suntech Chief Executive Zhenrong Shi said in a statement that strong growth in solar demand from U.S. utilities and federal incentives for solar power had helped lead to the company's decision to set up a U.S. production plant.

With Monday's announcement, Suntech joins a growing list of overseas renewable energy companies who are setting up production plants in the United States.

Suntech Announces Additional Repurchase of $150.4 Million 2012 Convertible Senior Notes

SAN FRANCISCO and WUXI, China, May 8, 2009 /PRNewswire-Asia via COMTEX/ -- Suntech Power Holdings Co., Ltd., the world's largest manufacturer of crystalline silicon photovoltaic (PV) modules, today announced that in the first quarter of 2009, Suntech re-purchased $150.4 million aggregate principal amount of its 0.25% convertible senior notes due 2012 for a total cash consideration of $129.9 million. As of May 8, 2009, Suntech had $255.8 million principal amount of its 2012 convertible senior notes outstanding.

Suntech may from time to time seek to make additional repurchases of its convertible senior notes. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements and other factors.

Suntech Reports Fourth Quarter and Full Year 2008 Financial Results

SAN FRANCISCO and WUXI, China, Feb. 18 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced financial results for the fourth quarter and full year ended December 31, 2008.

Fourth Quarter 2008 Financial Highlights(1)

-- Total net revenues grew 4.2% year-over-year to $414.4 million.

-- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
Excluding the provision for inventory and purchase commitments,
adjusted non-GAAP consolidated gross margin in the fourth quarter
was 13.1%.

-- GAAP net loss was $65.9 million, or negative $0.42 per diluted
American Depository Share (ADS). On a non-GAAP basis, Suntech's net
loss was $42.4 million, or negative $0.27 per diluted ADS. Each ADS
represents one ordinary share.

-- Net debt decreased by $273.7 million to $1,117.8 million as of
December 31, 2008.

Full Year 2008 Financial Highlights(1)

-- Total net revenues grew 42.7% year-over-year to $1,923.5 million.

-- Full year 2008 total shipments of solar products grew 36.0%
year-over-year to 497.5 MW.

-- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.

-- GAAP net income for the full year was $111.0 million or $0.66 per
ADS. On a non-GAAP basis, Suntech's net income for the full year was
$149.7 million or $0.89 per diluted ADS.

-- Achieved 1GW solar cell and module production capacity.

"Customer recognition of Suntech's high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "During 2008, we bolstered our on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."

"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."

"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech's reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.

RECENT BUSINESS HIGHLIGHTS

Silicon Procurement
-- Suntech and MEMC Electronic Materials amended their 10-year silicon
wafer supply agreement. As amended, the dollar value of silicon
wafer purchases from MEMC remains unchanged, but a volume increase
and a price reduction for 2009 have been effectuated.

-- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
independent polysilicon producer, for a total cash consideration of
approximately $8.1 million. Suntech previously entered into an
agreement to purchase up to $1.5 billion high purity polysilicon
from Asia Silicon over a seven-year period. Polysilicon cost
decreases to less than $40 per kilogram during the term of the
agreement.

Notable PV Projects
-- Suntech was chosen to design and construct a BIPV system totaling
3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
The project will be the largest BIPV installation in China.

-- Suntech supplied 5MW of Suntech solar panels for the largest solar
plant in the Middle East, a 10MW solar electricity system to power
Masdar City, the world's first carbon neutral city being built in
Abu Dhabi, United Arab Emirates. The solar system is being built and
designed by leading Abu Dhabi based solar power system integrator,
Enviromena Power Systems.

Product Offering Expansion
-- Suntech entered into an exclusive agreement giving Suntech rights
related to the worldwide manufacturing, distribution and marketing
of Applied Solar's building integrated solar roof tile product,
SolarBlend(TM), and roof membrane product, SolarEze(TM). The
agreements combine Suntech's industry-leading products with Applied
Solar's innovative BIPV applications to provide a more comprehensive
set of product offerings to the residential and commercial market.

U.S. Dealer Network
-- Suntech continued expanding its dealer network of residential
rooftop installers and integrators in the U.S. Currently, Suntech's
network includes over 100 dealers, up from 30 at the end of the
third quarter of 2008.

Technology
-- Suntech has a fully operational 34MW Pluto PV cell line and is in
the process of adding another 68MW of Pluto capacity. Suntech
expects to receive industry certification for Pluto PV modules in
the second quarter of 2009 and targets shipments of more than 50MW
of Pluto modules in 2009.

-- The Pluto high efficiency technology consistently achieves
conversion efficiencies of close to 17% on multi-crystalline PV
cells and close to 19% on mono-crystalline PV cells. Suntech
anticipates that the higher conversion efficiencies will improve
power output by up to 12% above conventional screen-printed PV cells,
enable improved space utilization and reduce installation and other
balance of system costs.

Convertible Senior Note Repurchase
-- Through December 31, 2008, Suntech repurchased $93.8 million
aggregate principal amount of its 0.25% Convertible Senior Notes due
2012 for cash consideration of $61.0 million. As a result, Suntech
realized a net gain of approximately $31.1 million.

Capital and Credit Facilities
-- Suntech had approximately $2.4 billion of approved credit lines to
be used for fixed asset purchase, working capital or trade financing
as of December 31, 2008. Of these credit facilities approximately
$1.2 billion had been drawn down as of December 31, 2008. Suntech
expects that its capital will be sufficient to cover its capital
expenditures in 2009 while maintaining adequate working capital to
support its operations.



Fourth Quarter 2008 Results


Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin

(in $ % of Net (in $
millions) Revenues millions) (%)

Standard PV Modules $382.6 92.3 % $11.4 3.0 %
Others $31.8 7.7 % ($7.8) (24.0%)
Total Net Revenues $414.4 100 % $3.6 0.9 %

Provision for
inventory and
purchase
commitment $50.7 12.2 %
Adjusted Non-GAAP
Gross Profit $54.3 13.1 %


Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.

Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.

Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non- GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.

Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.

Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.

Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.

In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate.

Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.

Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech's investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.

Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.

On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.

On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.

In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.

Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short- term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.

Restricted cash was $70.7 million as of December 31, 2008.

Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.

Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.



Full Year 2008 Results

Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin

(in $ % of Net (in $
millions) Revenues millions) (%)

Standard $1,785.8 92.8 % $343.8 19.3 %
PV
Modules
Others $137.7 7.2 % $5.7 4.1 %
Total Net $1,923.5 100 % $349.5 18.2 %
Revenues


Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.

On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.

On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over- year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.

In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.

Business Outlook

Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.

Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.

China Suntech says '09 output to rise 60 pct

* Output in 2009 expected to rise 60 pct

* Prices down 20 percent since the third quarter

* May increase capacity in 2009 if financial crisis eases

BEIJING, Feb 17 - China's Suntech Power, the world's largest solar module maker, said on Tuesday it expected production to rise 60 percent this year to at least 800 megawatts, as demand remains strong in Europe.

The company could resurrect a plan suspended earlier this year to expand capacity by 40 percent to 1.4 gigawatts, but will hold off on a decision until the impact from the global financial crisis is more transparent.

Suntech, which makes the panels that turn sunlight into electricity, expects full-year 2008 revenues between $1.91 billion and $1.93 billion.

Shi Zhengrong, the founder and chairman of Suntech Power Holdings Co, said that the financial crisis was affecting his industry, leading to a 20 percent cut in prices since the third quarter of last year.

"We have already signed over 600 megawatts of contracts with our European customers," Shi told Reuters in a telephone interview.

"We are still aiming for at least 800 megawatts of production for this year," he said. The entrepreneur said production was about 500 megawatts last year. "Business is still good."
renewable
DEMAND SLOWED

Financing for new renewable energy products has become difficult as banks around the world have tightened lending amid the worst economic slowdown in decades.

As demand slowed in the fourth quarter, Suntech laid off 10 percent of its 8,000-strong workforce and suspended a plan to expand capacity to 1.4 gigawatts in 2009.

However, the planned expansion could be restarted later this year if the effects on customers from the financial crisis ease.

"We want to hold capacity at one gigawatt until the financial situation becomes more clear," he said.

"It could come back on line later this year, we will see," he said, referring to the planned capacity increase.

While demand remained strong, Shi said prices had fallen as overcapacity weighed on producers.

"Prices have already fallen 20 percent from Q3 last year," he said, referring to the third quarter, but said that prices have now stabilised.

"I think prices are now more or less stabilised. There was a panic in the fourth quarter," he said.

Shi said lower prices would lead to a rise in demand in Europe, the destination for 80 percent of his output because of state subsidies for clean energy.

And while President Barack Obama's backing of renewable energy in the United States could potentially be another big source of demand for Suntech's products, Shi does not expect to see the increase in demand this year.

"We don't expect a surge in orders from the U.S. because it takes time to happen."

Suntech Buys Stake in Asia Silicon for $8.1M

Ucilia Wang

February 17, 2009

Suntech Power Holdings (NYSE: STP) has invested about $8.1 million in Asia Silicon, which has been supplying Suntech with the raw material for making solar cells.

Suntech, based in Wuxi, China, said Tuesday it bought a minority stake from an existing shareholder of Asia Silicon, which is located in Qinghai, China.

Back in 2007, Suntech said it had signed a seven-year, $1.5 billion deal with Asia Silicon. Asia Silicon was to begin delivering the material in the second half of 2008. Suntech said at the time that the contract would give it the cheapest silicon it could find. The company also said it would pay more than $40 per kilogram for the first half of the deal, and less than $40 per kilogram for the remainder of the contract.

Asia Silicon is a new entrant in the market. The company said it began producing silicon at the end of last year, and is revving up its manufacturing pace to reach 2,000 metric tons per year by the middle of this year.

Owning a piece of a silicon company could prove a good move at a time when silicon prices are falling rapidly. The trend, coupled with the economic downturn that has softened market demand, has prompted many solar cell makers to renegotiate their contracts with silicon makers.

Silicon makers aren't immune to market forces, however, and Suntech has seen its investments in two silicon makers, Nitol Solar and Hoku Materials, taking a dive. Suntech said last month that it would incur a charge between $49 million and $52 million in its fourth quarter financials as a result of its stakes in Nitol and Hoku.

Hoku, based in Pocatello, Idaho, recently said it could have trouble building its very first silicon factory because a few of its customers couldn't make the advanced payments that would help to pay for building the factory in Idaho.

Suntech is scheduled to release its quarterly earnings Wednesday.

Suntech and Standard Solar Reach 5 Megawatt Solar Panel Supply Agreement

Wednesday, Jan 28, 2009

SAN FRANCISCO and GAITHERSBURG, Md., Jan. 27/PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's leading manufacturer of photovoltaic (PV) modules, and Standard Solar, Inc. are looking forward to powering cleaner energy solutions throughout the Mid-Atlantic U.S. under a new agreement by which Suntech will supply up to 5 megawatts of photovoltaic solar panels to the Maryland-based solar developerand installer during 2009.

"Partnering with Suntech, a top-tier manufactureroffering a broad assortment of high-quality solar panels, better equipsStandard Solar to fulfill its rapidly growing customer requirements from NewJersey and Pennsylvania to North Carolina and Virginia," said ScottWiater, Vice President of Procurement at Standard Solar.

"Suntech looks forward to partnering with StandardSolar in supplying cleaner, cost-effective solutions to businesses, governmentagencies and homeowners. In addition to reducing the dependence on highlypolluting fossil fuels, we believe that the solar industry can also help togenerate new domestic, green jobs," said Roger Efird, President, SuntechAmerica, Inc.

In his address after taking the oath of office and becomingthe nation's 44th President, Barack Obama called for Americans to "harnessthe sun . . . to meet the demands of a new age."

"This agreement," said Standard Solar Presidentand Chief Executive Officer Anthony Clifford, "strengthens our ability torespond to this challenge. We cannot agree more with our new President when headded from the West front of the U.S. Capitol: "All this we can do. Andall this we will do."

Standard Solar looks forward to deploying Suntech's high-quality panels in solar solutions that deliver cost-effective power.Recently, Standard Solar helped Kelly & Sons Electrical Construction sourceits electricity supply through a power purchase agreement with Washington GasEnergy Services. Find more information about this power purchase agreement athttp://www.standardsolar.com/News-and-Events/Press-Releases.aspx.

Suntech recently achieved 1 gigawatt of global solar panel production capacity. In doing so, it completed an 18,000 square meter, 1megawatt solar facade -- the world's largest to date -- at its new world headquarters in Wuxi, China. You can find a photo of this precedent-setting application on Suntech's website at http://www.suntech-power.com under Press:Press Assets.

Abu Dhabi Picks Suntech, First Solar for 10MW Solar Farm in Masdar City

Masdar, a government-funded project, is set to rise from 6.5 square kilometers of desert land and powered mostly by solar.

by: Ucilia Wang
January 18, 2009

ABU DHABI -- Low-cost and high-volume manufacturing were apparently among the selling points that won two companies contracts to build Masdar City's first, 10-megawatt solar farm.

Managers of Abu Dhabi's ambitious project to build a zero-emission technology utopia in the desert named China's Suntech Power Holdings Sunday as the second company that is providing 5 megawatts worth of solar panels for the power plant. First Solar, based in Tempe, Ariz., made it known three days earlier that it won the other 5-megawatt contract.

Masdar City is the brainchild of Masdar, a government-funded initiative that invests in all sorts of greentech companies. Part of the plan is to build a massive city powered by renewable energy and occupied by greentech companies. When completed in 2016, the 6.5-square-kilometer city would be able to house about 50,000 people.

Abu Dhabi, known for its rich oil reserves, hopes to stake a new claim to fame through Masdar. Like its neighbor Dubai, Abu Dhabi is keen on finding new sources of revenues to brace for the day when oil isn't so plentiful.

Masdar has teamed up with solar companies to build solar and wind power plants in Europe (see Masdar Heats Up Concentrating Solar and Masdar Bets on Massive Offshore Wind Park). It also is building a factory to produce solar panels (see Masdar Breaks Ground on $230M Solar Factory).

"This is going to become the first model of a sustainable city," Khalid Awad, director of property development for Masdar, during a press event.

The 10-megawatt solar farm is being erected in the sand, and it's scheduled to be completed and hooked to the electric grid in March this year, said Khalid Ballaith, a project manager with Masdar. The solar farm is costing about 185 million dirhams ($50 million) to build, said Sander Trestain, a project manager at Environmena, the generator contractor for the $22 billion Masdar City build out.

The solar farm will be used to power Masdar City's construction, which started in 2008. Its first residents will be the 100 students and professors of the Masdar Institute of Science and Technology. They plan to move in by September this year.

Madsar is planning on building 240 megawatts worth of power plants overall for the city, Awad said.

Awad and other Masdar representatives showed off the project's progress to journalists Sunday as a prelude to the three-day energy by Masdar called "World Future Energy Summit."

The summit is attracting executives from public and startup companies in solar, wind, geothermal, water and other greentech businesses from around the world. Tony Blair will give a speech.

Masdar City planners envision using solar panels to generate 80 percent of the electricity the city needs, and many of the panels will go on rooftops, said Sameer Abu Zaid, who oversees a competition to test and select solar panel providers for the project. The remainder will come from other types of solar technologies, such as solar thermal, as well electricity generated from wastes and other fuel sources.

At one of the stops of the press tour, Zaid walked around rows of solar panels provided by companies from Japan, Germany, the United States, China and even Italy. The companies included Conergy, Yingli Green Energy, Trina Solar and Isofoton.

Masdar is trying out crystalline silicon panels as well as thin-film versions that much less silicon or different materials all together. In all, 33 companies are setting up 40 systems for Masdar. Solyndra, a Fremont, Calif.-based start and whose investors include Masdar, is still setting up its unusual, solar cell-lined tubes.

Masdar is using the contest to see how the panels perform in the desert, where wind and sand can easily dirty them and curb their ability to generate electricity. Zaid declined to say whose system has performed the best or provide costs for buying and running those systems.

Awad said the impact of the global economic downturn on the Masdar City project isn't known yet. He said given that customers are hard to come by for solar companies these days, Masdar project should become even more attractive. He noted that Masdar already has benefited from falling prices in solar panels and construction materials such as steel in recent months.

Suntech Laid Off 10%, Factories Running at 50%-60% Capacity

The Chinese solar panel maker refutes claims made by a news story reporting that the company has carried out a massive layoff.
by: Ucilia Wang
January 12, 2009

After a Chinese news report claimed Suntech Power Holdings (NYSE: STP) was planning a massive layoff, the solar panel maker on Monday said the report was inaccurate but disclosed that it did cut 10 percent of its workforce in the fourth quarter of 2008.

Economic downturn prompted the world's largest solar panel maker to chop roughly 800 people from the payrolls, said Steve Chadima, vice president of external affairs at Suntech.

The layoffs affected mostly contract factory workers, who were let go as the company reduced its production, Chadima added. Back in Novmber, Suntech trimmed its sales forecast for 2008, blaming the weak euro and credit crunch. The company has several factories in China, and the layoffs took place at the main factory near its headquarters in Wuxi.

"We were slowing down production because of this worldwide slow down in demand for modules," Chadima said.

Suntech's investor relation staff called major investors Monday trying to correct a news report by a business daily in China that appeared on Saturday and posted on Sina.com. A research firm, JLM Pacific Epoch translated the story into English and posted on its Website.

The original, Chinese version of the story, which cited a former Suntech employee, said Suntech started laying off employees in the last quarter, and the workforce reduction would reach 4,000 people, or 30 percent of the company's workforce, around now.

The story included comments from a Suntech spokesman, who didn't refute the numbers. The spokesman said the staff cut was seasonal because market demand is typically low during the winter.

But Suntech representatives said Monday the Chinese news report exaggerated the layoffs. Four thousand employees would've represented 50 percent of Suntech's workforce, Chadima said.

Suntech has no immediate plans to cut more staff, Chadima said. The company is putting off on its previous plan to hire more factory employees in 2009 until it can better determine market demand.

The Chinese news report also mentioned that some workers were asked to take a long holiday break without pay, and that the company cut executive salaries. Chadima, who initially told Greentech Media that some factory employees did take a two-week break -- instead of one-week -- without pay, called back to say that in fact the workers took paid vacation.

He added that the company didn't cut salaries for the executives. Instead, managers didn't take the year-end bonuses for 2008 "to deal with financial challenges in the next few months."

The company's factories are running at 50 percent to 60 percent capacity, which falls in line with the guidance the company has given to investors. The company recently celebrated reaching a 1-gigawatt production capacity for its solar cells and panels.

Suntech isn't alone in laying off employees. OptiSolar, based in Hayward, Calif., laid off 300 employees – or 50 percent of its staff. HelioVolt, which opened its first-ever solar panel factory last October in Austin, Texas, also has cut staff. SunEdison, a large solar power plant developer in Beltsville, Md., let go 50 to 60 people, a former SunEdison employee told Greentech Media.

Other solar companies, including Q-Cells in Germany and LDK Solar in China, have cut their 2009 sales and production forecast.

Suntech Reaches 1 GW of Solar Cell & Module Production Capacity

San Francisco, United States [RenewableEnergyWorld.com]

Suntech Power Holdings Co. Ltd. has reached 1 gigawatt (GW) of solar photovoltaic (PV) cell and module production capacity in Wuxi, China. The company also announced the opening of its new headquarters in Wuxi that incorporates a 1-megawatt (MW) grid-connected building integrated solar facade.

"Since our inception, we have focused on rapidly building world-class manufacturing facilities that can meet the burgeoning global demand for green energy."-- Dr. Zhengrong Shi, Chairman and CEO, Suntech

"We are very proud to become the world's first PV solar company to achieve 1 GW of solar cell and module production capacity," said Dr. Zhengrong Shi, Suntech's chairman and CEO. "Since our inception, we have focused on rapidly building world-class manufacturing facilities that can meet the burgeoning global demand for green energy. This milestone is a credit to all Suntech employees that have tirelessly worked towards the common goal of making cost-effective solar energy systems available on a global scale."

Suntech's new solar headquarters in Wuxi is an 18,000 square meter building that incorporates one of the world's largest on-grid photovoltaic facade systems. The system includes more than 2,552 semi-transparent Light Thru solar panels and will have an annual output of more than 1 million kilowatt-hours of electricity.

This announcement comes as other companies have started to scale back production estimates for 2009 because of polysilicon supply issues, market conditions and the problems that still exist in the world's credit markets following late 2008's record stock slide around the world.

SunTech to design, install 66 MW on-grid solar PV demon project in Yunnan

BEIJING, Dec 22, 2008 (Xinhua via COMTEX) -- China's solar product producer SunTech Power Holdings Co., Ltd. (STP.NYSE) will design and install a 66 MW solar photovoltaic (PV) power generating system for a large on-grid PV demo power station in Yunan in cooperation with Yunnan Provincial Power Investment Co., Ltd. and other investors.

The 66 MW solar PV power generating system to sever the popular science zone of a large experimental on-grid PV power station in Shilin, Southwest China's Yunnan Province, will involve total investment of 3.58 billion yuan and it is designed to generate 77.04 million kilowatts hours of electricity annually.

The system is scheduled to start construction in December 2008 and be completed in 18 months.

It is part of a 166 MW on-grid solar (PV) power station in Shilin, which is composed of a popular science zone and an experimental solar PV power generating zone with installed capacity of 66 MW and 100 MW, respectively. The whole project involves total investment of 9.1 billion yuan.

Suntech Opens Sales and Customer Service Office in Italy

SAN FRANCISCO and WUXI, China, Dec. 16 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced the opening of a sales office in Milan, Italy to provide enhanced sales and service support to Suntech's Italian customer base.

Jerry Stokes, Suntech's President of Europe, said, "Our new office in Milan is another step towards the increasing globalization of Suntech's sales and service capabilities. To complement our core sales competency, we are building a multi-faceted team across Europe that is in tune with local market conditions and can respond to customer needs promptly. We believe our customers appreciate this commitment and see Suntech as a reliable, long term solar partner."

Mauro Sgherri, Suntech's Director of Sales, Italy, said, "Suntech's involvement in many of the highest profile solar projects in Europe combined with a deep dedication to quality and continuous technology improvement distinguishes Suntech's solar offering in the Italian market. Moreover, Suntech's industry leading scale, broad product portfolio and timely product delivery highlight our market leadership. We have established a top tier customer base of companies that have long term solar plans and have already built an order book in Italy of over 130 megawatts for 2009. We look forward to supporting the growth plans of our Italian customers through the stablesupply of high quality solar modules and responsive customer service."

The Italian market is set to grow rapidly in 2009 due to strong support from the Italian government in the form of solar subsidies that range from EUR0.36/kWh for large ground-mounted PV systems and up to EUR0.49/kWh for building integrated PV systems. The high solar irradiation provides excellent conditions for generating solar energy.

About Suntech

Suntech Power Holdings Co., Ltd. (NYSE: STP) is a world-leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high-quality, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of BIPV products under the MSK Solar Design Line(TM). Suntech hassales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com .

Suntech Power: Now a Takeover Target

December 09, 2008

The United Nations Climate Change Conference is being held in Poland this week. Representatives from the top four Photovoltaic (PV) makers gathered in Poznan to propose the rapid implementation and expansion of policies designed to support the growth of the solar industry and the global adoption of solar technology as a major contributor to greenhouse gas (GHG) reduction in support of global climate goals.

As the top two solar companies, Suntech Power and First Solar dominate the European and U.S. markets respectively. According to Suntech CEO Dr. Zhengrong Shi, the company is dedicated to reducing the cost of solar electricity to grid parity through increasing economies of scale, improving efficient utilization of raw materials such as silicon, and developing more advanced technology and new applications. While no solar company has achieved grid parity, Suntech is leading the way. The company is also developing a new thin film technology with 50% efficiency.
Despite all of these positive developments, STP's stock price has been down as much as 90% from its 52-week high because of hedge fund redemptions in the last few months. Investors have started to realize its true value recently but it is still very much undervalued.

Recently, many solar companies have rolled out expansion plans for the coming years. For example, Sharp plans to invest $2.6B in Italy in a joint venture to tap growing demand of solar panels. Suntech power is also entering the U.S. solar market through acquiring EI Solutions, and will triple US sales by 2009. What makes STP extremely attractive is that China has set ambitious, long-term national goals that have helped to create a backdrop for a growing renewable energy industry such as a national renewable energy standard of 15% by 2020 and a commitment to invest US$180 billion in renewable energy by 2020.

With STP at such a low price, two companies might like to become bidders for Suntech. The first one is Sharp. Sharp has an ambitious plan to quickly reach the European and Chinese solar markets - acquiring Suntech provides a shortcut for the company to do this.

The second company that has been named in rumors is First Solar. FSLR mainly sells panels in the U.S. and Europe and a takeover of STP will give the company direct entry into the Asian market. A call to First Solar has not been returned. It is believed that Suntech will not consider any bid below $30 per share as the industry becomes very solar friendly going into 2009.

Suntech and a+f Complete Two Solar Power Plants in Spain

SAN FRANCISCO and WUXI, China, Dec. 4 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd., the world's leading manufacturer of photovoltaic (PV) modules, today announced that it recently completed two solar power plants in Spain in collaboration with a+f GmbH, a subsidiary of the GILDEMEISTER group, whose high performance SunCarrier single axis tracker is a market leader.

Suntech supplied approximately 50% of all modules utilized in an 8.5MWp solar plant in Alange and a 7.4MWp solar plant in Alconera. The modules were installed on over 450 a+f SunCarrier trackers, which increase the power efficiency of the solar systems by up to 32% above that of fixed mounted solar systems. In total the two solar plants will produce enough energy to power around 9,300 households and save carbon dioxide emissions of approximately 19,000 tons per year.

a+f's Managing Director, Dr. Rico Wojanowski said, "Our advanced SunCarrier tracking technology is perfectly matched with Suntech's internationally acclaimed high output solar modules. The combination of these two products enabled us to efficiently use the land available and develop a high power output solar solution that can satisfy the energy needs of thousands of households."

Jerry Stokes, President of Suntech Europe, said, "These solar projects illustrate the potential for inter-value chain collaboration to provide highly efficient and completely sustainable energy solutions. Suntech's dedication to producing premium quality, high power output solar products is a key factor leading to our strong brand recognition in Europe."

Suntech has built strong partnerships with many leading solar project developers and distributors in Spain, Italy and Greece through the consistent supply of extremely reliable, high conversion efficiency solar modules. Suntech expects to ship over 230MW of solar modules to Southern Europe in 2008.

About Suntech

Suntech Power Holdings Co., Ltd. (NYSE: STP) is a world-leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high-quality, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of BIPV products under the MSK Solar Design Line(TM). Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com .

About a+f

Wuerzburg, Germany based a+f GmbH has been working successfully over 15 years as a manufacturer of industrial plant equipment. As a subsidiary of the GILDEMEISTER group, a+f has access to the know-how and skills of this world- market leader in metal-cutting machine tools. In particular, the world-wide service network guarantees rapid reaction times and therefore constant availability for your installation.

Chinese PV product makers face gloomy fourth quarter

Beijing. December 2. INTERFAX-CHINA - Chinese photovoltaic product manufacturers, who have just enjoyed a two-year boom period, are concerned that the global financial crisis will cool overseas demand and impact their bottom lines in the fourth quarter.

Chinese PV product manufacturers rely on exports for 95 percent to 98 percent of their sales, and as such, the industry could be in for a long winter, Qu Xiaohua, president of Suzhou-based PV product maker CSI Solar Manufacturing Inc., told Interfax at the 3rd China New Energy International Forum. According to CSI's third quarter report, the company has lowered its expectations for shipments, margins and earnings for the fourth quarter.

Changzhou-based Trina Solar Ltd., another PV product manufacturer, has seen demand for its products shrink in recent months and some of its customers have even reneged on contracts, according to the company's technology committee director Qiu Diming.

Shi Zhengrong, chairman and CEO of Suntech Power, China's largest solar cell producer and a major exporter to Europe, agreed that China's PV product market is entering a tough period. Suntech Power stated in its third quarter report that the weakening of the Euro against the U.S. dollar, combined with unstable credit markets, would hurt its profitability in the fourth quarter.
Meanwhile, manufacturers have been unable to gain some breathing room by capitalizing on the recent tumble in prices for polysilicon, a raw material used to make PV products, which have halved from a high of RMB 3,000 ($439.24) per kilogram in July, as they have also cut solar cell and solar module prices on poor demand.

According to Shi from Suntec Power, which is also operates solar power stations, the industry should band together to petition for more government support, with the aim of extracting policies that will stimulate the domestic market as overseas markets weaken.

One of the problems that Suntech faces is that there are no incentives for power grid companies to spend money to connect solar power stations to their grids, despite China's Renewable Energy Law, which requires them to do so. Shi said that it took two years for one of Suntech Power's projects to be connected to the local grid.

Song Shucai, deputy general manager of Tianwei Group, a large Hebei-based renewable energy developer, suggested that the government raise power tariffs by RMB 0.02 ($0.0029) and use the proceeds to subsidize renewable energy projects.

Despite their concerns, Chinese PV product manufacturers are trying to look on the bright side of things. Several executives pointed out that the European Union, the United States and Japan are now encouraging solar power development as a way to stimulate economic growth.

In the meantime, Chinese PV product manufacturers could increase their focus on thin-film silicon PV modules, a sub-area that is attracting significant interest, especially from state-owned companies with deep pockets.

Jeannine Sargent from Oerlikon Solar, the world's leading manufacturer of thin-film PV silicon solutions, told Interfax that China's thin-film PV market will still be one of the fastest growing markets when compared with others around the globe. "For Oerlikon Solar, we are expecting a 200 percent increase in revenue from 2007 to 2009 in China."

Dr. Sun Haiyan, head of Oerlikon Solar Technical Marketing Asia, believes there are a couple of reasons why the sector will remain strong in the near term. "The price of glass, which is used as a raw material in thin-film solar module production, is quite cheap in China, which is an advantage when it comes to manufacturing," he said, adding that state-owned companies will likely support development in this field.

In this April and July, Oerlikon Solar signed two turnkey contracts with China's Tianwei Group and Chint Solar to supply thin-film solar module production lines. "We anticipate that we will not only build manufacturing facilities, but also partner with our customers on an R & D center as well," Sargent said.

Solar Power Generation Cost to Drop to CNY1 per KWH in 2012

WUXI, Nov 07, 2008 (SinoCast via COMTEX) -- China's generation cost of solar power will reach CNY 1 per KWH in 2012, predicted Shi Zhengrong, board chairman and CEO of Suntech Power.

Peng Xiaofeng, board chairman and CEO of solar wafer manufacturer LDK Solar Co., Ltd. (NYSE: LDK), declares that the financial crisis will further lower the company's procurement and labor costs by 40% to 50%.


And China Guodian Corporation (CGDC) has announced the foundation of Guodian Ningxia Solar Energy Company, to build polycrystalline silicon and thin-film cell projects, with a designed production capacity of 10,000 tons per year.


Moreover, Huaneng New Energy Industrial Co., Ltd. (HNEIC) General Manager Zhao Shiming releases that the generation cost of wind power has dropped to CNY 0.5 to CNY 0.6 per KWH, and that of thermal power is CNY 0.2 to CNY 0.3 per KWH.


Shanghai Electric Group Co., Ltd. (SEHK: 2727) Board Chairman and CEO Xu Jianguo reveals that wind power equipment has contributed to 50% of the company's sales revenues, and 60% of its profit.

China's solar PV industry in cold winter

China's solar PV industry entered into cold winter suddently from hot summer.

Many Chinese solar wafer, solar cell and solar panel manufacturers, including the major PV manufacturers, like Suntech Power, have stopped the production or reduced the production since the product prices are coming down too fast, and there is no margin for them to produce the products at all.

Some source told me that the solar cell production was cut half, and the solar panel production was 30% off at Suntech Power.

When the product price become stable, many manufacturers will recover their productions, and others will get out of the business.

Some companies believe this is a good opportunity for them to kick their competitors out of the market and in future they will have great perspective since the product cost will be reduced to acceptable level and the market demand will be much greater.

Second wave of major new Chinese module manufacturers coming in 2009

Current financial crisis could speed up consolidation in PV industry

By: Edwin Koot (CEO solarplaza)

31 October 2008 - The global solar energy market in 2008 is expected to grow by 50% compared to 2007. The Chinese solar PV industry is growing rapidly and will soon be the biggest producer of solar cells and modules in the world. There are now over 100 Chinese solar module manufacturers, and even more new market players are expected in the short term. The question is: what might the current credit crisis and pessimistic economic forecasts mean for the PV market and industry in 2009? With solar modules becoming a commodity product, China will definitely be playing a key role as a major producer of solar cells and modules. However, if we look at the maturity of the PV industry right now, and what has happened in other industries, an imminent consolidation phase seems likely. That could mean that fewer producers, and only the bigger ones among them, will survive. So which companies are likely to be the winners, and be reliable business partners for the long term?

Global PV market developments
The PV market is likely to grow less rapidly in 2009. First of all, the world's biggest market in 2008 - Spain - has reduced its support for solar energy. Feed-in tariffs will be cut by 30% in 2009 and, even more significantly, only 500 MWp of new installed PV power will be eligible for this feed-in tariff. This could lead to a decrease in volume for the Spanish market of more than 60%. With feed-in tariffs going down by around 10% in the German PV market, which was the world's biggest PV market for many years, it is likely to grow, but at a moderate rate. Growth in other markets is also dependent on government support programs. And although the US government recently agreed on an eight-year extension of the federal tax credit scheme for solar energy, the US market is not likely to grow very rapidly. The current credit crisis, and the economic recession forecasted for 2009, will limit the available finance from banks, and therefore also limit the development of new PV projects.

On the supply side, along with the global PV industry as a whole, supply will grow even faster than market demand in 2009. A conservative forecast by the Prometheus Institute suggests that solar module production volume will grow by a massive 80% in 2009. Most of the investments in new production capacity were planned between late 2007 and 2008, under the highly profitable market conditions.

Consolidation phase
Last September, SolarPlaza held the second Global PV Demand Conference in Valencia, Spain. The conclusion was that the huge growth in solar module production over the next two years, compared with the ?modest? growth in demand, would lead to an oversupply situation commencing in 2009. The experts in attendance predicted that this would create a consolidation phase in the PV industry. This conclusion was drawn even before the international credit crisis began. The difficulty in obtaining finance for new solar energy systems is now visible in the European PV markets. Even worse is the situation in the USA. Not only is the credit market frozen, the country is also facing economic recession in 2009 and possibly even 2010. Under these conditions, with the oil price falling and with no bank to finance PV system investments, customers might think twice about spending their savings on solar energy. Therefore, the credit and economic crisis may prevent rapid growth in both the US and the global PV markets. Together with the inevitable oversupply situation already predicted for 2009, the solar PV industry could be facing very hard times over the next two years. For the longer term, market forecasts are extremely positive. Industry consolidation will bring module prices down further. And, within a few years, one solar kilowatt hour will equal the price of electricity from the grid (?grid parity?) in the world's sunny regions. This will unleash unlimited market potential.

As a result, for the short term, financially weaker solar cell and module manufacturers, and those without a foothold in the world's key PV markets, will be put out of business or driven into the hands of some larger partner. In other words, the global economic crisis will speed up the consolidation phase in the PV industry.

Who will be the winners?
The world's leading manufacturers in the solar industry are well placed for continued growth in 2009. The top 10 of the world's biggest solar module manufacturers includes several Chinese companies, like Suntech Power, Yingli Solar and Trina Solar. These companies started up during the first wave of new Chinese PV industries a few years ago, and all three of them are listed on the New York Stock Exchange. They have grown rapidly and made healthy profits in 2007 and 2008. Their track record will help them to remain on the shortlist of banks financing PV projects. Their full order books will help them through a more difficult market phase in 2009. However, there are dozens of other manufacturers out there on the market. Many of them are relatively small, or just started trading in 2007, following the hype to produce solar modules. Back in 2007, the market became very hungry for modules. The availability of modules counted for more than the brand name. Now European and US banks are hesitant to provide PV project finance. A manufacturer needs to be highly bankable, or at least will need to offer sufficient financial guarantees, before any shipments can take place. If a company fails, all its modules will need to be returned, or the investor repaid. Only the bigger, financially sound companies will be able to fulfill these requirements. The first signs from China are that several smaller manufacturers are stopping production or actively looking for a takeover.

Companies and (big) manufacturers with healthy balance sheets and full order books will be in a good position to survive a difficult 2009.

The second wave
Nevertheless, it could turn out that the future winners among the manufacturers will be relatively unknown players: companies that have just started producing solar wafers, cells and modules, that have a strong vision, a conviction that the solar energy market will continue to grow in the long term, and deep pockets to see them through a difficult start-up phase under the current economic conditions.

Some major production initiatives by industrial companies or conglomerates with a variety of backgrounds have been announced or are underway ? from a glass manufacturer (CSG), to an industrial glove manufacturer (QS solar), to an energy utility (ENN), to a manufacturer of electronic devices (Chint). Their balance sheets will easily be more robust than those of the better-known existing European module manufacturers.

The benefit for European and US companies is that the Chinese companies will still need to develop their sales and distribution network structures in key markets. They are keen to do business directly with bigger end customers like PV project developers. And they are willing to offer financial security packages to overcome the doubts of banks and customers. Developers in Europe might ask themselves why they should pay ?0.30/Wp more for a well-known European module brand if the Chinese manufacturer is offering a full financial security package and is backed by a hundredmillion or more dollar parent company with thousands of employees.

It is difficult to give prices for their modules, since currencies are so volatile, but recently prices have been offered of between $3.60 and $3.75/Wp for deliveries of crystalline modules up to the end of 2008.

Several of these major new Chinese players have moved into thin film. In 2009 alone, total installed capacity could exceed 1.5 GW, then rapidly expand to double that figure one year later. This new wave of solar modules will start coming onto the market in early 2009, when the products will have their full IEC/UL certification. Prices will depend on the state of the dollar, but offers have been seen of $2.50/Wp.

These major new players may very well be among the manufacturers that survive the imminent consolidation phase. They can take a little head wind and prepare themselves for rapid market growth in the long term, when it will be full steam ahead once more.

China Pulls in Green Energy Investment

Source: http://www.greentechmedia.com

Green Energy Technology and the Nordic Environment Finance Corp. through its Carbon Fund are boosting investments in China, pointing to the country's growing role as maker and user of renewable energy technologies.

by: Jeff St. John

October 22, 2008

In the midst of a worldwide financial crisis, China's growing demand for energy continues to be an attractive draw for investors.

Several greentech companies this week have announced plans to put money into satisfying fast-growing appetite for renewable energy.

On the solar front, Taiwan's Green Energy Technology said Wednesday that it is investing $5.05 million for a 40-percent stake in a joint venture aimed at supplying solar cells to Chinese manufacturers.

The subsidiary of the Tatung Group said the joint venture hoped to be up and running by mid-2009 and to have an annual production capacity of 60 megawatts.

Also on Wednesday, the Nordic Environment Finance Corp. said that its Carbon Fund has signed up to buy carbon-emission reductions from two Chinese renewable power projects –a 201-megawatt wind project being developed by Yangtze New Energy Development Co. in Jiangsu province, and a small hydroelectric power project in southwest China.

The deals were announced a day after Google pledged to give $250,000 to the U.S. National Academies to find ways to link the United States and China - the world's two largest energy consumers and greenhouse gas emitters - in developing renewable energy policies and technologies (see Google Plays U.S.-China Matchmaker).

All of it points to a continuation of China's boom in renewable energy, itself both a part of - and a reaction to - China's fast-paced economic growth over the past decade, said Ron Pernick, co-founder and principal of research and publishing firm Clean Edge.

"China has not been sitting idle" in either the manufacturing or the deploying of renewable energy technologies, Pernick said. China already leads the world in making solar-water heaters, and its list of solar-photovoltaic manufacturers has grown to include heavy hitters such as Suntech Power Holdings (NYSE: STP), China Sunergy (NSDQ: CSUN) and Yingli Green Energy Holding Co. (NYSE: YGE), he said.

China stands third, behind Japan and Germany, in terms of its share of photovoltaic-manufacturing capacity, according to a Worldwatch Institute report released in November (see Could China Steal the Solar Throne?)

The report estimated that China was set to invest $10 billion in renewable energy last year, second only to Germany. That's out of about $150 billion invested in green energy worldwide last year, Pernick said.

The U.S. Department of Commerce set China's investment in renewable energy last year at an even higher $12 billion, and projects that the country will invest $175 billion in protecting the environment in the next five years as it strives to meet its renewable goals, according to CNBC.

That growth is linked not only to China's role as an offshore home for foreign manufacturers, but also to its pressing need for new renewable energy sources, the Worldwatch Institute said.

China hopes to boost its green-electricity generation from 17 percent of its overall generation capacity today to 21 percent by 2020. The Worldwatch Institute said China could well exceed those goals, pushing its renewable power capacity to as much as 400 gigawatts by 2020, up from 135 gigawatts in 2006.

So far, solar photovoltaic power projects within China remain "in their infancy" compared to Japan, Germany and the United States, and China's hopes for a large-scale domestic market for grid-integrated photovoltaic projects remains a few years out, according to the report.

That's not as much the case with wind power, which the report called China's fastest-growing renewable-energy source. China will need to invest $21 billion to $28 billion if the country is to meet its goal of 30 gigawatts of production by 2020, up from to 1.2 gigawatts in 2005, the Commerce Department reported.

China now has more than 50 domestic wind turbine manufacturers, the Worldwatch Institute said.

"They're also becoming a dominant wind player in terms of deployment," Pernick said of China. "The question is, what might happen in terms of manufacturing."

Despite the ongoing global financial crisis, Pernick sees permanence in China's current renewable energy push, given its people's increasing concern about environmental problems within the country's borders and global concerns about the country's role in curbing greenhouse gas emissions.

In an August report, the Worldwatch Institute said that China accounted for 57 percent of the world's growth of carbon emissions from burning fossil fuels from 2000 to 2007.

The link between China's renewable-energy push and its environment was brought to the world's attention this summer, when the Chinese government took drastic steps to clean up Beijing's notoriously polluted air for the 2008 Olympic Games (see Will the Olympics Make China Green?).

"The great thing about China is, if a mandate comes down from the national level, it can quickly be deployed," Pernick said.

Even in the midst of the ongoing global financial crisis, China remains an attractive market for green technologies, according to a survey of venture capitalists and technology company executives released Wednesday by the law firm DLA Piper.

Nearly nine of ten survey respondents said China's consumer market will be an "exploitable opportunity" for green technology companies, DLA Piper reported.

Still, Pernick doesn't see China becoming the "mother of all markets" when it comes to the growing market for renewable energy sources.

"This is a global phenomenon," he said. China is "just going to be one node in the network."

CHINESE SOLAR COMPANIES ON THE UP

ROTTERDAM - The Netherlands, Shanghai - China, October 17, 2008. Chinese solar companies are on the up. Led by major growth strategies, Chinese solar module manufacturers are hoping to push past the competition. Only the strongest will survive under current market conditions. Ignoring an expected oversupply situation in 2009, Chinese companies are aiming for growth rates of 100-400% a year. In recent years, we have already witnessed a reshuffle among the top 10 solar manufacturers; formerly high ranking European and Japanese producers have been replaced by Chinese manufacturers claiming positions among the top 10.

Although Q-cells still heads the table and First Solar is still the leading thin film company, the Chinese will be claiming more and more top-10 positions. Solarplaza, the global solar energy business portal, has made a shortlist of some of these high-potential companies and has taken a look at their growth ambitions and strategies.

Thin film

China has been in no doubt about the marked rise in the global production of thin film over the past two years. The first dozen thin film manufacturers to surface in China appeared no less than two to three years ago. Nowadays, dozens of Chinese thin film manufacturers are expanding their factories and have either started production or else will be doing so in the near future.

One of the largest investments has been made by Best Solar. With a contract worth $1.9 billion signed with Applied Materials they hope to grow from around 200 MW at the beginning of 2009 to almost 1 GW of thin film tandem junction production capacity by 2010, doubling this to 2GW by 2011.

To put this in perspective, First Solar (FSLR) will reach a production capacity of more than 1 GW by the end of 2009. Best Solar will start shipping products in Q1 of 2009.

Another young company with less capital but equal eagerness is QS Solar. This company is aiming to produce 500MW in thin film solar cells within 3 years (2010). QS Solar, together with companies like Nanosolar, Firstsolar, and Moserbaer, was one of the companies to present its products at the first thin film conference in Munich, June 2008.

Crystalline

There are already hundreds of manufacturers producing solar modules in China with regard to the crystalline side of things. A dozen are listed on foreign stock exchanges, four of them are listed on the New York stock exchange: JA Solar, Suntech Power, Trina Solar, and Solarfun.

The latter has received investments from Good Energies and is showing steady growth (from 240 MW output capacity to 360 MW by the end of 2008). Unlike Trina Solar, for instance, Solarfun focuses on producing solar cells and modules.

Founded in 1997, Trina Solar's year-end goal for 2009 is to have a production capacity of 600 MW, and it plans to ship between 360 to -400 MW in 2009 as they ramp up toward 600MW capacity. Trina has pursued a vertical integration model and thus produces, or aims to produce, nearly all the components for its PV panels. To demonstrate just how committed it was to this principle, Trina actually announced plans to open a polysilicon factory. It abandoned these plans in April this year.

The company argued that the polysilicon supply would become increasingly available as new plants came online; therefore, the supply of silicon would be both sufficient and ever more affordable in the years and months to come. Trina Solar, like Suntech, will be heavily reliant on the US as a market for their products.

Apart from these stock listed companies, there are also hundreds of small but ambitious companies actively involved in the solar industry.

Take Astronergy/Chint, for example. This company, founded in 2006, has a major focus on technology and is producing solar cells as well as thin film solar modules. It is striving to be the first among its competitors to reduce PV module costs to below $1/Wp. With a production goal of 380 MW by 2010, this company is also aiming to be one of the big players.

Bearing the scale of these ambitions and growth plans in mind, the Chinese solar industry will be able to take solar to the next level; and with prices that are almost the lowest in the industry, China will be giving European manufacturers a hard time in terms of the ability to compete.

Fully organized trade mission

For the purpose of exploring business opportunities and visiting the factories of some of the companies mentioned above, Solarplaza is organizing an open international PV trade mission to China. The program includes a brokerage event and factory visits to the companies mentioned above (Best Solar, Trina Solar, Solarfun Power, QS Solar, Chint Solar).

About SolarPlaza

Solarplaza is a global solar energy business portal with worldwide news and information on photovoltaic products and services. Solarplaza organizes solar-dedicated events and assists in large solar deals. Solarplaza has its headquarters in the Netherlands and also has offices in Spain and China.

MMA Renewable Ventures, Suntech Power Holdings Form JV to Develop Photovoltaic Projects

10/2/2008

(RTTNews) - Thursday, MMA Renewable Ventures, a subsidiary of Municipal Mortgage & Equity, LLC said the company and Suntech Power Holdings Co., Ltd. formed Gemini Solar Development Co., a joint venture to develop and finance photovoltaic projects 10 megawatts and larger. Separately, solar energy company Suntech Power Holdings announced two other initiatives, other than forming Gemini Solar, to significantly expand its share of the U.S. solar market.

With regard to creation of joint venture company, the projects undertaken by Gemini Solar will be co-owned and built by MMA Renewable Ventures, Suntech and their third-party finance partners. Suntech's director of structured finance, Kristina Peterson, will assume the role of Gemini's president.

Gemini Solar will supply an end-to-end solution to address the increasing demand for large-scale solar power projects as the U.S. increases its efforts towards energy independence, MMA Renewable Ventures noted.

Chief executive officer of MMA Renewable Ventures, Matt Cheney, commented, "Utility and other large-scale, distributed solar power systems are emerging as one of the fastest growing segments of the solar industry. MMA Renewable Ventures brings structured finance expertise and an unparalleled track record in developing and delivering quality renewable energy projects in the U.S. Suntech is an international innovator in solar, which brings manufacturing, large-scale module supply, advanced solar solutions and global presence to the joint venture. Together, we will enable investors to finance low risk, reliable solar power projects, while helping utilities, industry and government secure reliable, renewable energy right away."

In a separate release, Suntech Power Holdings announced two other initiatives, other than forming Gemini Solar, for the purpose of significantly expanding its share of the U.S. solar market.

One of the initiatives is acquisition of California-based commercial solar system integration company EI Solutions. Suntech expects the acquisition to enable it to provide complete solar solutions to commercial, utility and government customers in US. The new subsidiary will be named Suntech Energy Solutions and EI Solutions' present president, Andrew Beebe, will head the subsidiary.

Another initiative is to rapidly expand Suntech's U.S. dealer network to increase penetration into the residential roof-top and small commercial system solar market and build brand recognition with downstream solar integrators.

According to Suntech, all the three initiatives will enable it to serve more completely the full breadth of U.S. customers, from residential and commercial building owners to utilities and government. Consequently, the company intends to triple sales to the U.S. in 2009.