Dunhuang Solar Project, China

The Solar Energy Expert learned that the Dunhuang project has reached a historically turn point to most Chinese PV makers.

According to non-disclosed correnspondent, the Dunhuang project is conducting a bidding form, in order to find enough tenders to conduct the largest PV project in East Asia. However, due to the hard price and very strong competition from all manufacturers in China, the project is most likely being a losing-less project. That is to say, whoever wins the bid, it will instantly begin to lose money because the price is already too low to get any profits in 10 years.

Although China is one of the largest PV manufacturers countries in the world, and China is one of the largest CO2 emission countries, it lacks of funds as well as the policy to build an environment that encourages the solar energy. It is true that the market sees the pricing dropping, however the market is already under-priced that bidding has become no-meaning at all.

Quote:

Dunhuang and net 10 MW of photovoltaic power generation project to tender

Recently, the author learned from the Dunhuang Municipal Development and Reform Commission, National Energy Board commissioned an international call for tenders based limited liability company officially launched in Dunhuang, Gansu 10 MW grid-connected PV demonstration project tendering exercise for the concession. This indicates that in March last year by the National Development and Reform Commission to include renewable energy development, "Eleventh Five-Year Plan" of Dunhuang and net 10 MW of photovoltaic power generation project made significant progress.

In recent years, Dunhuang City, fully relying on the territory of rich light and heat resources, actively develop solar photovoltaic projects, respectively Pass, Yadan National Geological Park and other tourist scenic spot and built a total installed capacity of 7 kilowatts of photovoltaic power generation projects and photoelectric 100 kilowatts, 100 kilowatts of wind power stations complementary scenery. This order to speed up renewable energy development and utilization of, and promote the sustainable development of the Dunhuang region to explore a new path.
It is understood that the Dunhuang and net 10 MW of photovoltaic power generation market in Dunhuang City, the preliminary election Qiligang 215 National Road on the north side of town, covers an area of 1,000,000 square meters, with a total investment of around 5 billion yuan, an average of 16.37 million kwh electricity. Dunhuang 10 MW grid-connected PV demonstration project to take the concession tender the construction of 25-year franchise period. )

Dunhuang and net 10 MW of photovoltaic power generation projects to improve the atmospheric environment in Dunhuang region, the protection of cultural heritage, to speed up international tourism city of Dunhuang are of great significance to the building. After the completion of the project will become the world's largest photovoltaic grid-connected power plant.

A Financial Crisis Too Strong

The financial crisis has hardly hit the solar industry and so far some of the European markets have seen certain market saturation. What will the PV industry do to safely pass the crisis?

We predict that by the next February the market will wake up and all the energy will burst out. Some markets have already seen the power and it is just a matter of time.

Four Chinese Solar Stocks Under Threat from Pollution

By Irwin Greenstein

Mother Nature has its own beating in store for already battered solar energy stocks. As if the plunging price of oil wasn’t enough to bring solar stocks to their knees, the new report by the United Nations shows how China’s toxic pollution may hinder the development of the country’s burgeoning solar industry.

The putrid haze of Beijing that has engulfed China and greater Asia is reducing the amount of sunlight that actually reaches the ground, according to a new report from the United Nations Environment Program.

In addition to being responsible for millions of deaths and blighted crop yields, these so-called Atmospheric Brown Clouds (ABCs) have dimmed China’s skies to the extent that the country’s solar initiative, and its huge solar industry, could become DOA.

As it stands now, Chinese solar stocks are on life support — depleting the portfolios of investors who got in at the top of the China IPO solar bubble of 2006-2007.

The losses have been staggering…

1. Solarfun Power Holdings Co. (Nasdaq:SOLF) has a 52-week range of $4.20 - $40.19 - a drop of 89.5%
2. Trina Solar Ltd. (NYSE:TSL) fell from 56.50 to 8.51 over the past 52 weeks - for a loss of 84.9%.
3. Suntech Power Holdings (NYSE:STP) saw it’s 52-week price plunge to $9.53 from $90.00 - a loss of 89.4%
4. And JA Solar Holdings, Co., Ltd. (Nasdaq:JASO) fell from $27.00 to 2.01 over the past 52 weeks - a loss of 92.5%.

In a conference call to analysts on November 12th, JA Solar CEO Samuel Yang said “At this moment the market reaction has been panic.”

Now it appears that China’s home market for solar products is facing a very dim future as well from decades of pollution.

ABCs reflect solar radiation back to space by absorbing heat in the atmosphere.

In China, ABCs can cut sunlight on the Earth’s surface in two ways. Fossil-fuel particles such as sulphates reflect and scatter rays back into space, while black carbon in soot, absorbs sunlight before it reaches the ground.

According to the report, smog blocks 10-25% of the sunlight that should be reaching terra firma in China.

This isn’t just a thin layer of pollution blocking out the sun. In some places, it can be a mile thick. It can stretch from the Arabian Peninsula to the Yellow Sea, sometimes drifting as far east as California.

The U.N report says “In China the observed dimming trend from the 1950s to the 1990s was about 3-4 per cent per decade, with the larger trends after the 1970s.”

What does this mean for investors?

Those of you who tend to be bottom feeders should stay away from China solar stocks at any price. As we all know, when it comes to stock markets nothing is permanent. But zero is the share price we could be looking at for some these fallen IPO stars.

Disclosure: no positions

Suntech Power Dramatic Decline Of Output

According to reliable sources, Suntech Power China has cut at least half jobs and is preparing for further cutting.

Unconfirmed sources say that one of the China's biggest solar companies, Suntech Power Co, based in Wuxi China has seen a decline recently because of financial crisis.

One worker worked in the old production line told reporters that he was told to maintain only one day at work in one week. That is to say he's only paid one day salary per week, if not worse.

Another street source told reporters that Suntech Power had already closed or temporarily closed at least 24 production lines which represent 50% of its production. Unreported and unconfirmed data show that 2,000 workers have lost their jobs.

Other big solar companies have all suffered recently, however some medium companies that have not come into market are not hit very hard. According to some sources from China Municipal Bureau of Foreign Trade & Economic, some medium solar companies in China have put more resources in R&D and they are able to pass the crisis safely because they didn't put a lot of sources into production in the last three months and they did not leave too many stocks to sell. The good management was working in these companies.

Although Suntech Power is not likely to be dead, the current situation will certainly do harm to its reputation.