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SFCE Aug 31
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Shunfeng International Clean Energy Limited Announces 2015 Interim Results
Aug 30, 2015 | PR Newswired
Shunfeng International Clean Energy Limited ("SFCE" or the "Company"; Stock Code: 1165.HK), a leading integrated clean energy solutions provider; today announced its interim results for the six months ended30 June 2015. -
Shunfeng 2015 interim results: Revenue increased by 19.5% year-on-year, net profit significantly declined
Aug 31, 2015 | SolarServer
Shunfeng International Clean Energy Limited (SFCE, Hong Kong), an integrated clean energy solutions provider; on August 30th, 2015 announced its interim results for the six months ended June 30th, 2015. In the first half of 2015, SFCE’s revenue increased 19.5% year-on-year to RMB 3,520.4 million... -
Shunfeng's first-half profit falls to $27m on rapid expansion
Aug 31, 2015 | Recharge
By Brian Publicover
Shunfeng International Clean Energy’s (SFCE) net profit fell to 172.5m yuan ($27.1m) in the first half, from 503.9m yuan a year earlier, as aggressive expansion into foreign markets drove up the ambitious Chinese group’s operating expenses. It shipped 548.7MW of PV modules in the January-June period... -
Shunfeng records 66% 1H profit decline
Aug 31, 2015 | PV Magazine
By Becky Beetz
Shunfeng International Clean Energy Limited has seen net profits dive almost 65% in 1H 2015, caused partly by decreased ASPs and increased operating expenses. Current liabilities also exceed assets by around US$439 million. In line with its profit warning issued on August 4, China’s Shunfeng has recorded a massive 65.8%... -
Shunfeng of China's profit drops 66% in H1 2015
Aug 31, 2015 | See News Renewables
By Militsa Mancheva
China-based Shunfeng International Clean Energy Ltd (HKG:1165) said Friday its net profit for the first half of 2015 has fallen by 65.8% year-on-year to CNY 172.5 million (USD 27m/EUR 24m) due to low prices and growing costs. The result is in line with the firm’s forecast for at least 50% lower profits. The company, previously know... -
Shunfeng International Clean Energy H1 Profit Falls - Quick Facts
Aug 31, 2015 | RTT
Shunfeng International Clean Energy Limited (SHUNF.PK), integrated clean energy solutions provider, reported that its net profit for the first half of 2015 declined to RMB172.5 million from RMB503.9 million in the corresponding period in 2014. The decline in net profit was primarily due to a reduction in the average selling... -
10 GW Solar Power Policy Launched In Gujarat
Aug 29, 2015 | Clean Technica
By Saurabh Mahapatra
The Department of Energy and Petrochemicals has released a new solar policy for the Indian state of Gujarat which aims to scale up solar power generation to 10 GW by 2020. The new policy (called “Gujarat Solar Policy-2015“) promises to achieve solar energy targets in a sustainable manner. The policy, effective till March 2020, aims ... -
UK solar industry condemns proposals for ‘shattering’ FiT cuts
Aug 28, 2015 | PV Tech
By Tom Kenning
UK government proposals to cut its feed-in-tariff (FiT) rates for solar PV installations by as much as 87% have shocked the solar industry, which is already reeling from a recent wave of potentially damaging policy proposals, according the UK's Solar Trade Association (STA). -
Renewable Energy: Obama offers $1 billion in loan guarantees for innovations
Aug 31, 2015 | Chemical & Engineering News
By Steven K. Gibb
The White House has created a new $1 billion loan guarantee program to spur investment in renewable energy and energy storage systems. It addresses a thorny challenge in the effort to combat climate change—promoting investment in cleaner energy supplies. -
3 Reasons You Should Be Paying Attention To India's Renewable Energy Market
Aug 30, 2015 | Forbes
By Lyndsey Gilpin
If you search Google for “clean tech” or “clean energy,” you’re almost guaranteed to find an article about India. Every week, there’s news about the country’s ambitious renewable energy efforts and the hurdles it must overcome to reduce its carbon emissions. -
Yingli Green warns of a collapse in margins in Q2
Aug 28, 2015 | PV Tech
By Mark Osborne
Updated: Tier-one PV manufacturer Yingli Green Energy has taken the unusual step of issuing only piecemeal preliminary financial results for the second quarter of 2015 and delaying full quarterly results until September 8. In a statement the company said that overall gross margin in the second quarter would be in the range...
Press Release - Shunfeng International Clean Energy Limited Announces 2015 Interim Results
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Shunfeng International Clean Energy Limited Announces 2015 Interim Results
Aug 30, 2015 | PR Newswired
Shunfeng International Clean Energy Limited ("SFCE" or the "Company"; Stock Code: 1165.HK), a leading integrated clean energy solutions provider; today announced its interim results for the six months ended30 June 2015.
In the first half of 2015, revenue increased 19.5% year-on-year to RMB3,520.4 million, reflecting a significant increase in power generated from solar power plants in operation. Net profit was RMB172.5 million in the first half of 2015 compared to RMB503.9 million in the corresponding period in 2014. The decline in net profit was primarily due to a reduction in the average selling price of solar modules and an increase in operating expenses as the Company executed its strategy to expand into international markets.
Financial Highlights
(RMB million)
1H 2015
1H 2014
% Change
Revenue
Revenue from sale of solar products3,018.5
2,802.8
7.7%
Revenue from solar power generation
453.8
143.2
216.9%
Revenue from solar power plant operations and services
48.1
--
N/A
Total revenue
3,520.4
2,946.0
19.5%
Gross profit
461.6
750.0
-38.5%
Net profit
172.5
503.9
-65.8%
Basic earnings per share (RMB cent)
5.84
23.57
-75.2%
Net cash from operating activities
1,031.0
624.5
65.1%
"We are pleased to report revenue growth of 19.5% year-on-year in the first half as we generated an increasing amount of power generation from our portfolio of solar power plants," said Eric Luo, SFCE Executive Director and CEO.
"During the first half of the year, we took concrete steps to expand our platform as a global provider of clean energy solutions. Through our joint venture with Nobao, a leader in ground source heat pump technology, and acquisition of Lattice Power, an LED lighting specialist, we formed the full complement of technologies to replace traditional energy with cost-competitive, integrated low carbon solutions."
Zhang Yi, Chairman of SFCE, commented, "Looking forward, we are excited about the opportunities to bring cost-competitive clean energy solutions to an even broader, global customer base. We have a strong pipeline of projects where we will integrate multiple clean energy technologies – such as solar, LED, ground source heat pumps, storage and monitoring – to help our customers reduce energy consumption by 50% to 70%. We are also gaining international traction in our end-to-end solar solution business and we have received positive feedback from our customers in Europe and America, as well as key regions along China's strategic "One belt, One road" route. With governments across the world introducing sustainable development initiatives, SFCE is uniquely positioned to benefit from the growing demand for clean energy alternatives to fossil fuel."
Business HighlightsIntegrated Low Carbon Solutions Business: In March 2015, the Company established a joint venture Shunfeng Nobao Group Company Limited with strategic partner Nobao, a leader in ground source heat pump technology. SFCE holds 51% of the JV, which is focused on delivering integrated clean energy solutions to help global customers reduce energy consumption by 50% to 70% while shifting to renewable generation.In April 2015, the Company formed a joint venture with AVIC Capital, a subsidiary of Aviation Industry Corporation of China, to promote the integrated clean energy business model and provide integrated low carbon solutions to AVIC, as well as other international clients.LED Business: In August 2015, the Company acquired a 59% equity interest in Lattice Power Corporation, a leader in GaN-on Silicon LED technology, to expand into the LED business and further implement its strategy of developing one-stop clean energy solutions for customers.Acquisition of US Solar Manufacturer: On 12 August 2015, the Company announced it will acquire a 63.13% equity stake in Suniva, a leading American manufacturer of high-efficiency, cost competitive PV cells and modules. The acquisition will enable SFCE to serve customers in the premium and more profitable US market and facilitate the expansion of Suniva's manufacturing capacity to over 400MW within the next 12 months.
Solar Product Manufacturing Business
The Group manufactures and sells solar wafers, cells and modules to customers both in China and international markets. For the six months ended 30 June 2015, the sales volume of solar products amounted to 1,193.4MW, representing a 19.6% increase from 997.5MW for the corresponding period in 2014.
SFCE continued to diversify its sales of solar products in the first half of 2015. Top 5 customers in the first half of 2015 represented approximately 26.6% of total revenue as compared to approximately 44.7% in the corresponding period in 2014. In addition, sales to international customers increased to 42.2% of the Group's total revenue in the first half of 2015 from 30.7% in the corresponding period in 2014.
Sales volume to independent third parties
1H 2015
MW
1H 2014
MW
% Change
Solar wafers
246.0
225.4
9.2%
Solar cells
398.7
399.7
-0.2%
Solar modules
548.7
372.7
47.2%
TOTAL
1,193.4
997.5
19.6%
Solar Power Generation Business
The Group develops and operates solar power plants, primarily in China. For the six months ended 30 June 2015, solar power generation increased by 176% year-on-year to 512,751 MWh. The growth was primarily due to an increase in the number of grid-connected solar projects in operation, which increased from 890MW as of 30 June 2014 to 1,622MW as of 30 June 2015.
Solar Power Projects Development in China
1H2015
Under development
632MW
In construction
674MW
Grid-connected
88MW
Solar Power Plant Operation and Service Business
The Company acquired S.A.G. Solarstrom AG (S.A.G.) in the second half of 2014 to enhance capabilities in solar project development, EPC (engineering, procurement, construction), and solar power plant monitoring, operation and maintenance. S.A.G. continued to gain traction with customers in international markets and provided EPC services for 36MW projects in the first half of 2015.
In addition, S.A.G.'s wholly owned subsidiary meteocontrol GmbH (meteocontrol), one of the world's largest solar plant monitoring service providers, started providing monitoring services for an additional 800MW of solar plants in the first half of 2015. As of 30 June 2015, meteocontrol provided monitoring services for an aggregate of 10.8GW of solar plants globally.
About SFCE
Shunfeng International Clean Energy Limited (SFCE) is committed to becoming the world's largest low-carbon, integrated, clean energy generation provider. As a result of strategic acquisitions and integration, SFCE owns a number of well-known product and technology brands across the industry. SFCE fosters continuous improvement in energy generation including solar, sea water power, and ground source heat pumps, combined with energy management and storage capabilities. SFCE aims to provide clean energy solutions to large scale public facilities and commercial users including shopping malls, data centers, hotels, public buildings, manufacturing facilities, office buildings, schools, hospitals, sports complexes and households. SFCE's energy solutions can achieve energy cost reductions of 50% to 70%, creating energy generation choices for its customers that reduce both carbon emissions and energy costs.
PR Newswire (English): http://www.prnewswire.com/news-releases/shunfeng-international-clean-energy-limited-announces-2015-interim-results-300135027.html
PR Newswire (Mandarin): http://www.prnasia.com/story/archive/1489737_ZH89737_1
PR Newswired (Cantonese): http://hk.prnasia.com/story/archive/1489737_XG89737_2
Blackbird PR News: http://www.satprnews.com/2015/08/31/shunfeng-international-clean-energy-limited-announces-2015-interim-results/
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Aug 31, 2015 | SolarServer
Shunfeng International Clean Energy Limited (SFCE, Hong Kong), an integrated clean energy solutions provider; on August 30th, 2015 announced its interim results for the six months ended June 30th, 2015.
In the first half of 2015, SFCE’s revenue increased 19.5% year-on-year to RMB 3,520.4 million (approx. USD 550 million), reflecting a significant increase in power generated from solar photovoltaic (PV) plants in operation.
Net profit declined by 66 percent due to reduced prices of solar PV modules, increase in operating expenses
Net profit was RMB 172.5 million (approx. USD 27 million) in the first half of 2015 compared to RMB 503.9 million (approx. 78.8 million) in the corresponding period in 2014. The decline in net profit was primarily due to a reduction in the average selling price of solar PV modules and an increase in operating expenses as the Company executed its strategy to expand into international markets, SFCE notes.
"We are pleased to report revenue growth of 19.5% year-on-year in the first half as we generated an increasing amount of power generation from our portfolio of solar power plants," said Eric Luo, SFCE Executive Director and CEO.
"During the first half of the year, we took concrete steps to expand our platform as a global provider of clean energy solutions. Through our joint venture with Nobao, a leader in ground source heat pump technology, and acquisition of Lattice Power, an LED lighting specialist, we formed the full complement of technologies to replace traditional energy with cost-competitive, integrated low carbon solutions."
Zhang Yi, Chairman of SFCE, commented: "Looking forward, we are excited about the opportunities to bring cost-competitive clean energy solutions to an even broader, global customer base. We have a strong pipeline of projects where we will integrate multiple clean energy technologies – such as solar, LED, ground source heat pumps, storage and monitoring – to help our customers reduce energy consumption by 50% to 70%.”
“We are also gaining international traction in our end-to-end solar solution business and we have received positive feedback from our customers in Europe and America, as well as key regions along China's strategic "One belt, One road" route. With governments across the world introducing sustainable development initiatives, SFCE is uniquely positioned to benefit from the growing demand for clean energy alternatives to fossil fuel."
Acquisition of US PV manufacturer Suniva
On August12th, 2015, SFCE announced it will acquire a 63.13% equity stake in Suniva, a leading American manufacturer of high-efficiency, cost competitive PV cells and modules. The acquisition will enable SFCE to serve customers in the premium and more profitable US market and facilitate the expansion of Suniva's manufacturing capacity to over 400 MW within the next 12 months.
Sales volume of PV products increased by 19.6% compared to H1, 2014
The Group manufactures and sells solar wafers, cells and modules to customers both in China and international markets. For the six months ended June 30th, 2015, the sales volume of solar PV products amounted to 1,193.4 MW, representing a 19.6% increase from 997.5 MW for the corresponding period in 2014.
SFCE continued to diversify its sales of solar products in the first half of 2015. Top 5 customers in the first half of 2015 represented approximately 26.6% of total revenue as compared to approximately 44.7% in the corresponding period in 2014.
In addition, sales to international customers increased to 42.2% of the Group's total revenue in the first half of 2015 from 30.7% in the corresponding period in 2014.
Solar power generation increased by 176%
SFCE develops and operates solar PV plants, primarily in China. For the six months ended June 30th, 2015, solar power generation increased by 176% year-on-year to 512,751 MWh.
The growth was primarily due to an increase in the number of grid-connected PV plants in operation, which increased from 890 MW as of 30th June 2014 to 1,622 MW as of 30th June 2015.
SolarServer (English): http://www.solarserver.com/solar-magazine/solar-news/current/2015/kw36/shunfeng-2015-interim-results-revenue-increased-by-195-year-on-year-net-profit-significantly-declined.html
SolarServer (German): http://www.solarserver.de/solar-magazin/nachrichten/aktuelles/2015/kw36/shunfeng-halbjahresergebnisse-2015-umsatz-195-hoeher-als-im-vorjahreszeitraum-reingewinn-wesentlich-niedriger.html
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Shunfeng's first-half profit falls to $27m on rapid expansion
Aug 31, 2015 | Recharge
By Brian Publicover
Shunfeng International Clean Energy’s (SFCE) net profit fell to 172.5m yuan ($27.1m) in the first half, from 503.9m yuan a year earlier, as aggressive expansion into foreign markets drove up the ambitious Chinese group’s operating expenses.It shipped 548.7MW of PV modules in the January-June period, up 47.2% from the first six months of 2014.
Sales of PV cells fell 0.2% on the year to 398.7MW, while shipments of wafers rose 9.2% to 246MW.
It connected 88MW of fresh PV capacity to the grid in China in the first half, bringing its total cumulative capacity in the country to 1.62GW as of 30 June.
It is currently developing 632MW of solar in China, with 674MW now under construction.
Total group revenues jumped 19.5% year on year to 3,520.4 million yuan, as revenue from its solar projects spiked 216.9% from the first half of 2014 to 453.8m yuan, according to an online statement.
Its solar projects generated 512.8GWh of electricity in the first half, up 176% year on year.
However, lower average selling prices (ASPs) for group unit Suntech’s PV modules eroded its profitability in the six months to 30 June, it said.
"We took concrete steps to expand our platform as a global provider of clean energy solutions,” said SFCE chief executive Eric Luo.
In early August, the company revealed plans to acquire a 63.13% stake in Atlanta-based PV cell and module manufacturer Suniva for $57.8m.
However, in July it scrapped a plan to buy 723MW of wind power, in a deal that would have marked its first foray into the sector.
Link: http://www.rechargenews.com/solar/1410004/shunfengs-first-half-profit-falls-to-usd-27m-on-rapid-expansion
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Shunfeng records 66% 1H profit decline
Aug 31, 2015 | PV Magazine
By Becky Beetz
Shunfeng International Clean Energy Limited has seen net profits dive almost 65% in 1H 2015, caused partly by decreased ASPs and increased operating expenses. Current liabilities also exceed assets by around US$439 million.
In line with its profit warning issued on August 4, China’s Shunfeng has recorded a massive 65.8% 1H 2015 drop in net revenues, from RMB 503.9 million (around $79 million) to RMB 172.5 million (around $27 million). Gross profit, meanwhile, spiraled down from RMB 750 million, to RMB 461.6 million. These figures are a far cry from the annual results it announced this March.
A 19.9% drop in average selling prices (ASPs) of solar modules, from RMB 3.97/W to RMB 3.18/W was cited as a main factor, as were "significant" increases in operating expenses. However, also to blame were an increase in financial costs from convertible bonds issued in December 2014 and January 2015 connected to business expansion; and an inability to capitalize certain interest expenses relating to the development of solar plants.
The ASPs offset an increase in solar module shipments, which increased from 372.7 MW in 1H 2014, to 548.7 MW. At 1.2 GW, overall solar shipments – modules, cells and wafers – grew from the 997.5 MW shipped last year. Revenues in this segment rose from RMB 2.8 billion to RMB 3 billion.
Representing growth of 216.9%, revenues from its solar power generation business reached RMB 453.8 million, while revenues from solar power plant operations recorded RMB 48.1 million, up from nothing the previous year. Total revenues hit RMB 3.5 billion, up 19.5% on 2014’s RMB 2.9 billion.
Growth of 176% to 512,751 MWh was recorded in Shunfeng’s solar power generation business, due to an increase in operational grid-connected solar projects, from 890 MW as of June 30, 2014, to 1.6 GW as of June 30, 2015.
Overall, the company says it has 2.3 GW of solar projects in China, of which 1.9 GW are under construction. The majority are utility-scale plants. Via its S.A.G. Solarstrom acquisition, Shunfeng provided EPC services for 36 MW of solar plants in 1H 2015, while S.A.G.'s wholly owned subsidiary, meteocontrol GmbH, started providing monitoring services for an additional 800MW of solar plants.
Shunfeng noted in its financials that also as of June 30, 2015, its current liabilities exceeded its current assets by RMB 2.8 billion, and capital expenditures amounted to RMB 3.4 billion. Overall, the company has access to banking credit and facilities totaling RMB 40 billion, to be provided by Industrial Commercial Bank of China and China Minsheng Banking Corporation Limited.
Primarily impacted by increased interest on bank and other loans, finance costs rocketed from RMB93.3 million in 1H 2014 to RMB194.6 million. This was partially offset by an increase in the capitalized amount of finance costs from RMB111.2 million, to RMB169.7 million.
Ignoring the bad news, Shunfeng chairman, Zhang Yi said he was excited about the future opportunities to "bring cost-competitive clean energy solutions to an even broader, global customer base." Through its various joint ventures and acquisitions in the areas of heat pumps and the LED and solar businesses, Shunfeng is aiming to help customers "reduce energy consumption by 50% to 70%."
Shunfeng did not issue any guidance for the rest of 2015.
Link: http://www.pv-magazine.com/news/details/beitrag/shunfeng-records-66-1h-profit-decline_100020867/#axzz3kOXmqGgn
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Shunfeng of China's profit drops 66% in H1 2015
Aug 31, 2015 | See News Renewables
By Militsa Mancheva
China-based Shunfeng International Clean Energy Ltd (HKG:1165) said Friday its net profit for the first half of 2015 has fallen by 65.8% year-on-year to CNY 172.5 million (USD 27m/EUR 24m) due to low prices and growing costs.
The result is in line with the firm’s forecast for at least 50% lower profits. The company, previously known as Shunfeng Photovoltaic International, explained that the decline in its bottom line can be mainly attributed to a 15.8% year-on-year decrease in January-June average selling prices (ASPs) for photovoltaic (PV) products. Significantly higher costs also hurt Shunfeng’s first-half performance.
The lower ASPs offset the good results of Shunfeng’s solar products manufacturing business, in which sales grew by 19.6% on the year to 1,193.4 MW. The company’s electricity generation division also registered 216.9% higher revenues, as the combined output of its 1,622 MW of solar parks grew by 176% to 512,751 MWh as compared to the first six months of 2014.
Shunfeng saw its total revenue in January-June 2015 jump by 19.5% year-on-year to CNY 3.52 billion. The biggest portion of it came from its solar module manufacturing and trading operations, where sales reached CNY 1.74 billion, as compared to CNY 1.48 billion in 2014. In particular, the firm shipped 548.7 MW of PV modules to third parties in the reporting period.
Shunfeng, the parent of Wuxi Suntech, is a fully-integrated solar company, which operates in both the upstream and downstream solar segments. “We have a strong pipeline of projects where we will integrate multiple clean energy technologies – such as solar, LED, ground source heat pumps, storage and monitoring – to help our customers reduce energy consumption by 50% to 70%,” chairman Zhang Yi noted.
Link: http://renewables.seenews.com/news/shunfeng-of-chinas-profit-drops-66-in-h1-2015-490719
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Shunfeng International Clean Energy H1 Profit Falls - Quick Facts
Aug 31, 2015 | RTT
Shunfeng International Clean Energy Limited (SHUNF.PK), integrated clean energy solutions provider, reported that its net profit for the first half of 2015 declined to RMB172.5 million from RMB503.9 million in the corresponding period in 2014. The decline in net profit was primarily due to a reduction in the average selling price of solar modules and an increase in operating expenses as the Company executed its strategy to expand into international markets. Basic earnings per share was 5.84 RMB cents, lower than last year's 23.57 RMB cents.
Revenue for the period increased 19.5% year-on-year to RMB 3.52 billion, reflecting a significant increase in power generated from solar power plants in operation.
Link: http://www.rttnews.com/2546340/shunfeng-international-clean-energy-h1-profit-falls-quick-facts.aspx
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10 GW Solar Power Policy Launched In Gujarat
Aug 29, 2015 | Clean Technica
By Saurabh Mahapatra
The Department of Energy and Petrochemicals has released a new solar policy for the Indian state of Gujarat which aims to scale up solar power generation to 10 GW by 2020.
The new policy (called “Gujarat Solar Policy-2015“) promises to achieve solar energy targets in a sustainable manner. The policy, effective till March 2020, aims to encourage investors to set up large-scale solar projects along with extra emphasis given on smaller generation units, mainly kilowatt (kW)-scale solar projects in the form of solar rooftop systems. According to the policy document, solar power generators (SPGs) that install and commission solar projects during the operative period will be eligible for the benefits and incentives for a period of 25 years from the date of commissioning.
The policy document states that the minimum size of a MW-scale project would be 1 MW, and it will be 1 kW for a kW-scale project. The new solar policy is believed to be in line with the State’s Industrial Policy 2015, which promotes the “Make in India,” a campaign which encourages local manufacturing.
This is the second solar policy announced by the Gujarat government. The first policy was unveiled in 2009 and had resulted in the installation of more than 1 GW of solar projects with a total investment of $1.4 billion. The policy also resulted in the implementation of Asia’s biggest solar park at Charanka and India’s first-of-a-kind canal-top solar project at Mehasana district of Gujarat.
Unlike the old policy, the new policy aims to provide emphasis on decentralised solar power generation, which will help the end-consumer directly. It also aims to promote several modes of generation, including rooftop solar, distribution of solar-powered pumps to farmers, and standalone solar photovoltaic systems for individual homes.
Under the policy, any surplus energy generated and exported after adjustment of the consumption at the end of the billing cycle shall be purchased by the concerned distribution company and this will benefit the distribution companies in that it will help them to fulfill their Renewable Energy Purchase Obligations (RPOs). Currently, Gujarat stands second, after Rajasthan, in terms of solar projects installation, with more than 1 GW of grid-connected solar projects.
Link: http://cleantechnica.com/2015/08/29/10-gw-solar-power-policy-launched-gujarat/
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UK solar industry condemns proposals for ‘shattering’ FiT cuts
Aug 28, 2015 | PV Tech
By Tom Kenning
UK government proposals to cut its feed-in-tariff (FiT) rates for solar PV installations by as much as 87% have shocked the solar industry, which is already reeling from a recent wave of potentially damaging policy proposals, according the UK's Solar Trade Association (STA).
The UK Department of Energy and Climate Change (DECC) is proposing deep cuts to support for all scales of PV system from 1 January 2016. It is also looking to enforce default degressions each quarter which would see FiT support for some scales of solar end on 1 January 2019.
The headline figure contained within the government’s impact assessment is that its proposals would wipe around 6.1GW from the UK’s renewables generation capacity by 2020/2021.
Mike Landy, head of policy at the STA, said the proposals were self-defeating – adding: “A sudden cut combined with the threat of scheme closure is a particularly bad idea – it will create a huge boom and bust that is not only very damaging to solar businesses and jobs but does nothing to help budget constraints.”
The STA is now calling on the government to work with the industry on a stable path towards reaching subsidy-free solar.
Leonie Greene, STA head of external affairs, said it was wrong to “push the industry over a cliff” just as it was closing in on repaying public investment through lower and more stable bills.
Landy said: “We need to see some positive proposals very quickly to mitigate the shattering of confidence across the solar industry.”
Reza Shaybani, chairman, British Photovoltaic Association (BPVA), said the proposals were “totally unacceptable” and “unnecessary” and would wipe out 95% of the solar industry in the UK, making it an “unsafe place for investment”.
He added: “Cutting the FiT for rooftop solar which reduces the energy bills for millions of homes and businesses is not defendable. The government promised to support solar on the roof but have totally acted against what was repeatedly said by senior government figures.”
The proposed caps would limit solar installations to about 22,000 annually and commercial installations to just over 100, he said.
Meanwhile James Court, head of policy and external affairs at the Renewable Energy Association, said rooftop solar has to be a key technology for a decarbonised future, by allowing consumers and businesses to gain control over the centralised energy market.
Referring to the DECC proposals, he added: “This is a phenomenally damaging and short sighted decision, which sets back this goal significantly and will lead to higher costs in the medium to long term.
“It is hard to see how homeowners or businesses could see solar as an attractive option for the foreseeable future following these disproportionate cuts.
“Solar has come down in cost so dramatically in the past five years and has grid parity in its sights, the industry feels like it’s having its legs cut away metres from the finishing line.”
Link: http://www.pv-tech.org/news/uk_solar_industry_confidence_shattered_by_subsidy_cuts
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Renewable Energy: Obama offers $1 billion in loan guarantees for innovations
Aug 31, 2015 | Chemical & Engineering News
By Steven K. Gibb
The White House has created a new $1 billion loan guarantee program to spur investment in renewable energy and energy storage systems. It addresses a thorny challenge in the effort to combat climate change—promoting investment in cleaner energy supplies.
Proposals to develop, apply, or scale up innovative energy efficiency, energy storage, and renewable energy systems will be eligible for new Department of Energy loan guarantees, President Barack Obama announced last week. In addition to the new program, up to $10 billion in existing DOE loan guarantees will be open to such energy innovations.
The initiative is aimed at spurring advances in technologies and applications of both renewable energy sources and stored energy systems.
Renewable and energy storage organizations are praising the initiative. Matt Roberts of the Energy Storage Association says the effort will “definitely have an impact as DOE both brings financial resources and offers technical expertise to support these projects.” Roberts says the program will help innovative companies bridge the gap between venture capital investment when they are at the early idea stage and conventional lending that banks are more willing to extend to more mature, market-ready businesses.
According to the White House, the goal of the initiative is to increase the share of renewables to 20% of electric power generation (excluding hydropower) by 2030, install 300 MW of renewable energy on federally subsidized housing by 2020, and double energy production by 2030.
Link: http://cen.acs.org/articles/93/i34/RENEWABLE-ENERGY-Obama-offers-1.html
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3 Reasons You Should Be Paying Attention To India's Renewable Energy Market
Aug 30, 2015 | Forbes
By Lyndsey Gilpin
If you search Google for “clean tech” or “clean energy,” you’re almost guaranteed to find an article about India. Every week, there’s news about the country’s ambitious renewable energy efforts and the hurdles it must overcome to reduce its carbon emissions.
India has one of the most aggressive clean energy goals of any nation in the world, with a plan to have 100 gigawatts of solar capacity installed by 2022, which is a five-fold increase from the previous government’s target goal. A large portion of the installations would be through rooftop solar power systems, which is a critical aspect to bringing electricity to rural areas.
There are 1.25 billion people living in India, and the effects of its rapid population growth on the rest of the world will continue to come to light in the next few years. Since the country is such a key player in the climate change conversation, it’s important to understand its renewable energy market and why it matters for the global economy and for the planet.
With that, here are three key things to know about the state of things.
1. India is an extremely attractive market right now.
According to Ernst & Young Renewable Energy Market Attractiveness Index, India is the fifth most attractive market in the world, which is a big improvement within the last two years. India’s push for clean energy comes ahead of the United Nations Conference on Climate Change in Paris at the end of this year.Most nations have already submitted their specific climate action plans, and India is supposed to do so soon.
According to the latest data from India’s Ministry of New and Renewable Energy, 4,089 megawatts of renewable energy capacity were added from 2014 to 2015, which is more than 8.5 percent than the targeted 3,770 megawatts. By the end of June 2015, India had 4 gigawatts total of solar capacity. India as a whole has massive solar power potential — according to the National Institute of Solar Energy in India, up to 750 gigawatts — but the breakdown of where that power will be generated will depend on the states.
2. There are massive changes in government policies occurring.
Indian Prime Minister Narendra Modi has been the biggest proponent of the aggressive renewable energy goal in his country. Here’s the breakdown of the plan for solar: 40 gigawatts of utility-scale solar40 gigawatts of rooftop solar20 gigawatts that vary by individual project
Many states have already announced their specific plans for generating solar energy, and major efforts are being made, but details of the overall plan still remain unclear. And although it is considered groundbreaking, the plan does have some major setbacks. The World Trade Organization recently ruled that India’s solar program was inconsistent with international norms, citing that India’s requirements to impose local content for its solar cells and modules does not comply.
What’s even more contentious about India’s energy generation is that it is the third largest emitter of greenhouse gases, behind the US and China. However, as National Geographic reported, India’s impact cannot be fairly compared with China’s — while 6 percent of China’s population lived on $1.25 a day or less in 2011, 25 percent of India’s did.
According to the World Bank, about 400 million people in India lack access to electricity. Burning coal is one way to reduce that number. For many years, India has relied on coal power (both imported and domestic), and since 2014, the country has pushed for more coal production alongside its transition to renewables, thus complicating the efforts. There are even some reports that India’s coal rush could push the world beyond irreversible climate change. That makes the construction of its solar plants — like the largest one in Asia that’s being built in Madhya Pradesh — all the more critical.
3. Global investors are pouring money into India.
There is a ton of money being poured into India’s clean energy efforts, from the Indian government, from the private sector, and from investors and governments around the world. For instance, the United States Agency for International Development just gave $41 million to fund renewable energy efforts in India, and an additional $8 million to fund innovation and research in the clean energy sector. This deal came after President Obama signed agreements committing to fund clean energy projects in India during his visit there earlier this year. India and the US have also partnered on the Partnership to Advance Clean Energy Research (PACE-R) and Partnership to Advance Clean Energy Deployment (PACE-D), which would mean a lot for the government target of energy access for every household by 2019.
Other nations are investing as well. For example, Japan’s telecom company Softbank pledged $20 billion in solar power projects, and there are reports of Chinese companies looking to manufacture solar cells and modules in India. Next year, India will host its first renewable energy investors summit to attract more large-scale investors.
According to Bloomberg New Energy Finance, clean energy investments in India increased to $7.9 billion last year and are expected to exceed $10 billion in 2015. BNEF also reported that an expected 2,500 new megawatts of solar will be installed this year.
Link: http://www.forbes.com/sites/lyndseygilpin/2015/08/30/3-reasons-you-should-be-paying-attention-to-indias-renewable-energy-market/
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Yingli Green warns of a collapse in margins in Q2
Aug 28, 2015 | PV Tech
By Mark Osborne
Updated: Tier-one PV manufacturer Yingli Green Energy has taken the unusual step of issuing only piecemeal preliminary financial results for the second quarter of 2015 and delaying full quarterly results until September 8.
In a statement the company said that overall gross margin in the second quarter would be in the range of 6% to 7%, half the level (14.1%) of the first quarter of 2015 and significantly below reported margins of 16.8% in the fourth quarter of 2014.
Yingli Green had noted in its first quarter financial results that the decline in margins was primarily due to lower production utilisation rates and reiterated in its preliminary statement for second quarter results that lower production utilisation rates had been primarily behind the further significant fall in margins expected in the quarter.
However, the company also warned that PV module margins had declined significantly in the second quarter, guiding the gross margin for the sale of PV module would be in the range of 7% to 8%. This contrasts with PV module margins of 14.8% in the first quarter of 2015, basically half the margin level achieved in the prior quarter.
Yingli Green said that the PV module margin decline was due to average selling price (ASP) of PV modules declining and an increase in the manufacturing cost due lower-than-expected utilisation rate of production capacity.
The company also blamed the PV module margin decline on more shipments within the China market and the depreciation of euro and Japanese yen against the renminbi.
However, PV module shipments for the second quarter of 2015 were guided at between 720MW to 730MW, in line with previous guidance of 720MW to 750MW, a small decrease from shipments in the first quarter of 754.2MW.
Based on the data provided by Yingli Green, the collapse in PV module margins and an unspecified increase in shipments within China strongly suggests that the company is heavily discounting prices to secure sales and therefore much needed revenue, potentially indicating that overseas orders are becoming increasingly problematic due to its financial condition and announced ‘going concern’ issues in its 2014 annul report.
The increase in sales within its domestic market and the collapse in PV module margins could also indicate that the company undertook OEM services for other tier-one producers in China that have been running at full capacity and had recently reported shipments higher than current manufacturing capacity, such as Trina Solar, JinkoSolar and Canadian Solar.
No further financial details regarding the second quarter were announced.
In a research note to investors, RBC Capital Markets financial analyst, Mahesh Sanganeria said that Yingli Green’s preliminary results indicate that the company could be expected to further reduce shipment guidance for the year.
Yingli Green had already reduced full-year shipment guidance from being in the range between 3.6GW to 3.9GW to approximately 3.6GW in the first quarter.
Link: http://www.pv-tech.org/news/yingli_green_warns_collapse_in_margins_in_q2
Press Release - Shunfeng International Clean Energy Limited Announces 2015 Interim Results
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