Asia Report: Solar Stocks Tumble After Tariff Ruling

By Renewable Energy World Editors
May 21, 2012

New Hampshire, USA -- It was another rough week for China's once booming solar manufacturers, who are already reeling from overcapacity and major subsidy drawbacks in the European market.

On Thursday, the news got worse as the United States, one of the more lucrative markets out there, held up a giant detour sign to those Chinese panel makers who export their products into the country. The markets didn’t react well to the news of 31 percent anti-dumping tariffs. Shares of the big three of Suntech, Yingli and Trina dropped significantly toward the end of the week.

Meanwhile, Chinese companies are starting to band together as they consider their collective next step in an ongoing dispute that has deep political implications.

“We held an emergency meeting in the morning of May 18 after hearing the news, and we are now contacting and mobilizing Chinese companies to rebut the tariffs,” said Gao Hongling, Deputy Secretary General of the China Photovoltaic Industry Alliance, according to ZDNet.com.

MORE ON CHINA-U.S. DISPUTE

Ruling Goes Against China: The U.S. Department of Commerce on Thursday announced stiff anti-dumping tariffs of around 31 percent on crystalline silicon solar panels imported from China, leading to a new round of concerns on how the duties will impact the growing American solar industry.

Will Ruling Restore Balance?: In the quest to "level the playing field," the 31 percent anti-dumping tariff announced Thursday was a good start, said SolarWorld President Gordon Brinser, but even more is needed to bring the industry back into balance. Key Chinese manufacturers, meanwhile, remain confident that the tariff will be reduced between now and the final determination.

U.S. Bill Looks to Exclude Chinese Panels from Tax Credit: In a move aimed squarely at China, two high-profile Senate Democrats introduced a proposal Tuesday that if passed would set American-made requirements on solar installations looking to qualify for the 30 percent Investment Tax Credit.

IN THE NEWS

South Korea Carbon Program Passes: South Korean lawmakers have approved a national emissions trading program to reduce the global warming pollution from its largest sectors by 2015. South Korea is the world’s eighth largest emitter of carbon pollution from fossil fuel burning. The legislation is set to go into effect in 2015 and would cap the carbon pollution from power plants, steel plants, ship makers, and large universities.

Minister Praises India Solar Project: New and Renewable Energy Minister Farooq Abdullah said the new solar power plant atop a water canal in the state of Gujarat has shown the nation the way and it will be replicated by Damodar Valley Corporation. The world's first 1 MW canal-top solar power plant in Mehsana district virtually eliminates the requirement to acquire vast tract of land and limits evaporation of water from the 750 meter long canal.

India Wind Developer Falls Short of Target: Mytrah Energy boosted its installed wind-turbine capacity in India to 224 megawatts, falling short of a goal to build 500 megawatts by June.

In Japan Solar Cells Surge: Sales of solar cells in Japan rose 32.1 percent in the year ended March 31 from the previous year to 1,404 megawatts, driven by robust demand from house owners, industry data showed.

A DEEPER LOOK

India May Approve First Offshore Wind Projects: The Indian government may soon allow project developers to set up the first offshore wind energy projects in the country. The initiative by the government has been taken after several project developers expressed willingness to set up offshore projects which may deliver higher revenue compared to onshore projects.

Ups and Downs of Japan’s Wind Sector: The capacity to produce electricity from wind power in Japan increased about fivefold to 2.5 million kilowatts over the past decade, but the pace of increase in the past fiscal year to March was the slowest during the 10-year period at slightly below 100,000 kilowatts due to the termination the previous year of government subsidies for plant construction.

Cambodian Village Gets Solar: Koh Slar, a small rural village in Kampot Province in southern Cambodia, recently celebrated the opening of a solar power plant built by a Korean aid agency. The villagers of Koh Slar, who are mostly disabled soldiers from years of civil wars in the country, had little or no access to electricity.

Dwindling Support for Jatropha in India: Jatropha, hailed by India as a viable crop for biofuel, has so far failed to live up to expectations, and a negative report has spurred officials to put a hold on the national plantation program.

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