China solar set to be 5 times 2020 target
Tue May 5, 2009 5:29am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
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* Stimulus package for renewable energy expected soon
* Renewable energy 2020 goal will more than double 2007 plan
* Solar subsidies attractive but not immediately feasible (Adds comment on solar subsidy plan)
By Rujun Shen and Jacqueline Wong
SHANGHAI, May 5 (Reuters) - China is set to smash its target for a roll-out of solar power by 2020 more than fivefold and possibly even tenfold, a researcher with the National Development and Reform Commission, the economic planning ministry, said on Tuesday.
Under the NDRC's renewable energy plan set out in 2007, China would have 1,800 megawatts of installed solar capacity by 2020.
But Wang Zhongying, assistant director at the NDRC's Energy Research Institute and head of its Renewable Energy Development Centre, said the country was likely to far exceed that.
"The goal that we made originally is probably too low," he said at a solar energy conference in Shanghai. "By 2020, we can reach 10,000 MW or more."
He cited an international aspiration for countries to get 1 percent of electricity from solar by 2020, which would mean a target of 40,000 MW for China, which he said was too high.
"China could reach 10,000 MW or higher, maybe 20,000 MW."
He stressed that the forecast was his own opinion and not an official target.
At the end of 2008, solar power capacity attached to the grid was less than 100 MW, or 0.01 percent of China's entire installed capacity.
China is massively dependent on coal, used to generate around 80 percent of its power, but hopes to lessen coal's dominance by using more hydro, wind, nuclear and biomass.
The government is expected to unveil an economic stimulus package for renewable energy within the next few months.
Shi Dinghuan, president of the Chinese Renewable Energy Society, said the 2020 goal for renewable energy would be revised under the new stimulus plan to more than double the 2007 plan.
Even with a tenfold increase in its 2020 target, solar would play a much smaller part in China's overall power mix than those other energy sources. Under the original plan, biomass and wind were set to reach 30,000 MW by 2020, with nuclear at 40,000 MW. Continued
China has already more than tripled the 2020 target for wind to 100,000 MW and is expected to easily surpass its nuclear target. [ID:nPEK336151]
The revised target for wind could be 100-150 GW, Xinhua news agency quoted sources close to the plan as saying on Tuesday.
Firms with exposure to China's solar sector include Suntech Power (STP.N), Trina Solar (TSL.N), ReneSola (SOLA.L), China Sunergy (CSUN.O), LDK Solar (LDK.N), Yingli Green Energy (YGE.N), and Solarfun (SOLF.O).
SOLAR SUBSIDY
China announced the plan to grant subsidy to pilot solar power projects attached to buildings in March. Industry officials applauded the effort, but also said the subsidy plan has its own problems.
"It's a great policy, a positive sign that the government wants to support the development of the solar industry. But it's difficult to implement the policy," said Wang from the NDRC's Energy Research Institute.
Beijing said it would provide 20 yuan per Watt-peak (Wp) of subsidy for solar power projects attached to buildings that, in addition to other requirements, have capacity of more than 50 kiloWatt-peak (KWp).
Wang said the central government was studying detailed guidance on the policy, which potentially could push for a big stride in the solar industry's development.
Industry officials said many companies have already shown enormous interest in the subsidy, including solar companies and real estate developers.
Tue May 5, 2009 5:29am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
Featured Broker sponsored link
* Stimulus package for renewable energy expected soon
* Renewable energy 2020 goal will more than double 2007 plan
* Solar subsidies attractive but not immediately feasible (Adds comment on solar subsidy plan)
By Rujun Shen and Jacqueline Wong
SHANGHAI, May 5 (Reuters) - China is set to smash its target for a roll-out of solar power by 2020 more than fivefold and possibly even tenfold, a researcher with the National Development and Reform Commission, the economic planning ministry, said on Tuesday.
Under the NDRC's renewable energy plan set out in 2007, China would have 1,800 megawatts of installed solar capacity by 2020.
But Wang Zhongying, assistant director at the NDRC's Energy Research Institute and head of its Renewable Energy Development Centre, said the country was likely to far exceed that.
"The goal that we made originally is probably too low," he said at a solar energy conference in Shanghai. "By 2020, we can reach 10,000 MW or more."
He cited an international aspiration for countries to get 1 percent of electricity from solar by 2020, which would mean a target of 40,000 MW for China, which he said was too high.
"China could reach 10,000 MW or higher, maybe 20,000 MW."
He stressed that the forecast was his own opinion and not an official target.
At the end of 2008, solar power capacity attached to the grid was less than 100 MW, or 0.01 percent of China's entire installed capacity.
China is massively dependent on coal, used to generate around 80 percent of its power, but hopes to lessen coal's dominance by using more hydro, wind, nuclear and biomass.
The government is expected to unveil an economic stimulus package for renewable energy within the next few months.
Shi Dinghuan, president of the Chinese Renewable Energy Society, said the 2020 goal for renewable energy would be revised under the new stimulus plan to more than double the 2007 plan.
Even with a tenfold increase in its 2020 target, solar would play a much smaller part in China's overall power mix than those other energy sources. Under the original plan, biomass and wind were set to reach 30,000 MW by 2020, with nuclear at 40,000 MW. Continued
China has already more than tripled the 2020 target for wind to 100,000 MW and is expected to easily surpass its nuclear target. [ID:nPEK336151]
The revised target for wind could be 100-150 GW, Xinhua news agency quoted sources close to the plan as saying on Tuesday.
Firms with exposure to China's solar sector include Suntech Power (STP.N), Trina Solar (TSL.N), ReneSola (SOLA.L), China Sunergy (CSUN.O), LDK Solar (LDK.N), Yingli Green Energy (YGE.N), and Solarfun (SOLF.O).
SOLAR SUBSIDY
China announced the plan to grant subsidy to pilot solar power projects attached to buildings in March. Industry officials applauded the effort, but also said the subsidy plan has its own problems.
"It's a great policy, a positive sign that the government wants to support the development of the solar industry. But it's difficult to implement the policy," said Wang from the NDRC's Energy Research Institute.
Beijing said it would provide 20 yuan per Watt-peak (Wp) of subsidy for solar power projects attached to buildings that, in addition to other requirements, have capacity of more than 50 kiloWatt-peak (KWp).
Wang said the central government was studying detailed guidance on the policy, which potentially could push for a big stride in the solar industry's development.
Industry officials said many companies have already shown enormous interest in the subsidy, including solar companies and real estate developers.
13/5 2009 10:57 le 0
10995 GT Solar Q4 profit falls 59 pct; shares slide
Tue May 12, 2009 5:30pm EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
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* Q4 shr $0.08 vs $0.20 last yr
* Rev up 6 pct, but misses estimates
* Sees FY shr $0.45 to $0.60, Rev $450 mln to $550 mln
* Q4 gross margins fall to 28 pct
* Shares fall 15 pct (Recasts, adds details, analyst comment, updates share movement)
By Adveith Nair
BANGALORE, May 12 (Reuters) - GT Solar International Inc (SOLR.O) on Tuesday reported a 59 percent drop in quarterly profit, and the solar equipment maker also forecast full-year profit below market view, sending its shares down as much as 15 percent.
The company's shares fell to a low of $6.05 in trading after the bell, after having closed at $7.22 in regular trade Tuesday.
"It was basically a top-line driven miss," Raymond James analyst Pavel Molchanov told Reuters, adding that there was a significant difference in estimates and reported revenue.
The company said it saw slower spending by customers in its photovoltaic (PV) equipment business in the second half of its fiscal year, a trend, that it said was continuing in fiscal 2010.
Molchanov, however, said this was not surprising. "Given the oversupply across the PV value chain, companies are cutting capital expenditure. That, of course, translates into lower sales for GT Solar."
On the outlook, Molchanov said sales were not going to be moving quite as well as previously thought.
"If you look at what they did in fiscal 2009, when revenue came in at about $541 million, they would have flat revenue at the high end of their outlook and would be down about 20 percent at the low end."
The analyst said the outlook was not a "disaster."
"This is a company that has good visibility. They gave guidance, which is better than some companies that are refusing to give any kind of guidance these days."
On Monday, solar company Energy Conversion Devices Inc (ENER.O) reported a 81 percent drop in third-quarter profit and declined to provide outlook for the fourth quarter, citing poor visibility. [ID:nBNG116458] Continued...
WEAK RESULTS
For the fourth quarter, the company earned $11.8 million, or 8 cents a share, compared with $28.5 million, or 20 cents a share, a year earlier.
Revenue was up 5 percent at $138.5 million.
Results include a 5 cents a share charge related to the company's cancellation of purchase orders with certain PV-related suppliers, GT Solar said.
Analysts, on average, were looking for earnings of 18 cents a share, before items, on revenue of $151 million, according to Reuters Estimates.
For the fiscal year ending April 2010, Merrimack, New Hampshire-based GT Solar expects earnings of between 45 cents and 60 cents a share on revenue of between $450 million and $550 million.
Analysts currently expect full-year earnings of 82 cents a share, before items, on revenue of $682.3 million.
GT Solar debuted on the Nasdaq last July at $16.50, raising about $500 million, but got off to a rocky start.
The company's shares fell as soon as they went public and slumped as much as 95 percent to a life-low of 88 cents in November. Since then, however, the stock has recouped some of its losses. (Reporting by Adveith Nair in Bangalore; Editing by Anil D'Silva, Jarshad Kakkrakandy)
View article on single pagePrevious Page 1 | 2 Next Page
© Thomson Reuters 2009 All rights reserved
Tue May 12, 2009 5:30pm EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
Market News
U.S. dollar drops to 4-month low, oil hangs near $60
Oil rises towards $60 on U.S. stockdraw, eyes recovery
Rio shares drop as talk of a rights issue grows
More Business & Investing News... Featured Broker sponsored link
* Q4 shr $0.08 vs $0.20 last yr
* Rev up 6 pct, but misses estimates
* Sees FY shr $0.45 to $0.60, Rev $450 mln to $550 mln
* Q4 gross margins fall to 28 pct
* Shares fall 15 pct (Recasts, adds details, analyst comment, updates share movement)
By Adveith Nair
BANGALORE, May 12 (Reuters) - GT Solar International Inc (SOLR.O) on Tuesday reported a 59 percent drop in quarterly profit, and the solar equipment maker also forecast full-year profit below market view, sending its shares down as much as 15 percent.
The company's shares fell to a low of $6.05 in trading after the bell, after having closed at $7.22 in regular trade Tuesday.
"It was basically a top-line driven miss," Raymond James analyst Pavel Molchanov told Reuters, adding that there was a significant difference in estimates and reported revenue.
The company said it saw slower spending by customers in its photovoltaic (PV) equipment business in the second half of its fiscal year, a trend, that it said was continuing in fiscal 2010.
Molchanov, however, said this was not surprising. "Given the oversupply across the PV value chain, companies are cutting capital expenditure. That, of course, translates into lower sales for GT Solar."
On the outlook, Molchanov said sales were not going to be moving quite as well as previously thought.
"If you look at what they did in fiscal 2009, when revenue came in at about $541 million, they would have flat revenue at the high end of their outlook and would be down about 20 percent at the low end."
The analyst said the outlook was not a "disaster."
"This is a company that has good visibility. They gave guidance, which is better than some companies that are refusing to give any kind of guidance these days."
On Monday, solar company Energy Conversion Devices Inc (ENER.O) reported a 81 percent drop in third-quarter profit and declined to provide outlook for the fourth quarter, citing poor visibility. [ID:nBNG116458] Continued...
WEAK RESULTS
For the fourth quarter, the company earned $11.8 million, or 8 cents a share, compared with $28.5 million, or 20 cents a share, a year earlier.
Revenue was up 5 percent at $138.5 million.
Results include a 5 cents a share charge related to the company's cancellation of purchase orders with certain PV-related suppliers, GT Solar said.
Analysts, on average, were looking for earnings of 18 cents a share, before items, on revenue of $151 million, according to Reuters Estimates.
For the fiscal year ending April 2010, Merrimack, New Hampshire-based GT Solar expects earnings of between 45 cents and 60 cents a share on revenue of between $450 million and $550 million.
Analysts currently expect full-year earnings of 82 cents a share, before items, on revenue of $682.3 million.
GT Solar debuted on the Nasdaq last July at $16.50, raising about $500 million, but got off to a rocky start.
The company's shares fell as soon as they went public and slumped as much as 95 percent to a life-low of 88 cents in November. Since then, however, the stock has recouped some of its losses. (Reporting by Adveith Nair in Bangalore; Editing by Anil D'Silva, Jarshad Kakkrakandy)
View article on single pagePrevious Page 1 | 2 Next Page
© Thomson Reuters 2009 All rights reserved
13/5 2009 11:13 le 010998 Solar Energy - Demand Starting To Dim?
Posted By:Lee Brodie
Topics:Alternative Energy | Stock Market | Stock Picks
Companies:Energy Conversion Devices Inc
Earlier in the week solar giant Energy Conversion Devices [ENER 16.41 0.45 (+2.82%) ] reported a 81 percent drop in third-quarter profit due to weak demand for solar power in the United States.
And to make matter worse, the company declined to provide outlook for the fourth quarter, citing poor visibility.
ENERGY CONVERSION D...(ENER)
16.41 0.45 (+2.82%%)
NASDAQ
It wasn’t long ago that skyrocketing demand for solar power was a bright spot in the global economy. But a pullback in solar subsidies in Spain and frozen credit markets has recently choked off demand.
On a conference call with analysts, Chief Executive Mark Morelli explained that the company had lower-than-anticipated product sales and higher-than-expected inventory levels at the end of the quarter.
And according to Raymond James analyst Pavel Molchanov "their news adds to the perception that demand is very, very poor."
Sounds bleak. So what should you do? Just when things look their worst is when you might want to strike.
I think Energy Conversion Devices has a great balance sheet, counsels Pete Najarian. I’d take a look.
But if you want to steer clear of the volatility look at IBM [IBM 103.94 1.04 (+1.01%) ]. They’re kind of secretly involved in solar.
Posted By:Lee Brodie
Topics:Alternative Energy | Stock Market | Stock Picks
Companies:Energy Conversion Devices Inc
Earlier in the week solar giant Energy Conversion Devices [ENER 16.41 0.45 (+2.82%) ] reported a 81 percent drop in third-quarter profit due to weak demand for solar power in the United States.
And to make matter worse, the company declined to provide outlook for the fourth quarter, citing poor visibility.
ENERGY CONVERSION D...(ENER)
16.41 0.45 (+2.82%%)
NASDAQ
It wasn’t long ago that skyrocketing demand for solar power was a bright spot in the global economy. But a pullback in solar subsidies in Spain and frozen credit markets has recently choked off demand.
On a conference call with analysts, Chief Executive Mark Morelli explained that the company had lower-than-anticipated product sales and higher-than-expected inventory levels at the end of the quarter.
And according to Raymond James analyst Pavel Molchanov "their news adds to the perception that demand is very, very poor."
Sounds bleak. So what should you do? Just when things look their worst is when you might want to strike.
I think Energy Conversion Devices has a great balance sheet, counsels Pete Najarian. I’d take a look.
But if you want to steer clear of the volatility look at IBM [IBM 103.94 1.04 (+1.01%) ]. They’re kind of secretly involved in solar.
