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SFCE Media Scan for April 30, 2015
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China solar expansion needs billions from wary investors
Apr 29, 2015 | Reuters
By CHARLIE ZHU AND ADAM ROSE
Chinese solar companies, some already heavily indebted, will need to raise many billions of dollars this year to fund a big expansion in capacity, a major test of investor confidence in a sector hit hard by the global financial crisis. -
China's solar growth facing funding shortfall, reports Reuters
Apr 30, 2015 | PV Magazine
By IAN CLOVER
Ambitious capacity expansion plans throughout the Chinese solar industry could spell financial trouble for many Chinese solar companies this year, reports Reuters. -
Shunfeng International Clean Energy Shares Vision for the Era of the Green City during 2015 SNEC PV Power Expo
Apr 30, 2015 | PR Newswire
Over the course of the week Shunfeng International Clean Energy (SFCE), along with its subsidiary companies, Shunfeng Photovoltaic, Suntech, Sunways, SAG Solar, Taiwan Carbon Nanotube, Powin Energy, and meteocontrol, participated at the ninth annual SNEC PV Power Expo in Shanghai. SFCE CEO Eric Luo joined 27 other C-Suite level executives in the PV industry at the Solar Leader Dialogue Session on April 27 at the SNEC PV Power Expo.
SFCE News
Press Release: Shunfeng International Clean Energy Shares Vision for the Era of the Green City during 2015 SNEC PV Power Expo
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China solar expansion needs billions from wary investors
Apr 29, 2015 | Reuters
By CHARLIE ZHU AND ADAM ROSE
Chinese solar companies, some already heavily indebted, will need to raise many billions of dollars this year to fund a big expansion in capacity, a major test of investor confidence in a sector hit hard by the global financial crisis.
Beijing last month announced a solar installation target of 17.8 gigawatts (GWs) for 2015, up 70 percent on the previous year, to boost the use of renewable energy and prop up China's solar panel industry, the world's largest.
Industry experts say that will entail total investment from big state-owned enterprises and debt-laden private businesses of over $23 billion, most of it from state banks, and the domestic debt and equity capital markets.
Chinese banks, however, remain wary after writing off billions of dollars via a wave of defaults and plant closures in the sector when European demand for Chinese solar products collapsed during the euro zone debt crisis.
"We will only provide limited support to the sector," said a top executive of a northern provincial branch of Industrial and Commercial Bank of China (ICBC).
Many of this year's installations may be small-scale solar projects such as rooftop generators, experts say, which would make financing more tricky than for utility-scale solar farms.
Even so, solar industry executives say bankers and investors are showing signs of growing interest in the industry.
There is, after all, huge potential, as Beijing is talking about boosting solar capacity to 100 GWs by 2020, up from 26.52 GW of grid-connected solar power at end-2014.
"We have noticed a significant improvement in the financing environment for solar this year," Eric Luo, chief executive of Shunfeng International, a private major Chinese solar panel maker and plant developer, told Reuters.
Shunfeng, which is doubling its domestic solar generating capacity to 3 GWs this year, signed a framework agreement in February with the ICBC on a potential credit line of 20 billion yuan ($3.23 billion) for solar development.
VOLATILE BET
Others have also found funding.
Officials at privately controlled solar panel maker Trina said the company had teamed up with a trust unit of insurer Ping An to develop 1 GW of solar power projects over the next three years, with Ping An taking up to 49 percent in each project and providing bridge financing.
Trina and other panel manufacturers, like JinkoSolar, are also planning to spin off their power plants for overseas listings to raise capital, while GCL New Energy has agreed to issue $100 million in convertible bonds to Goldman Sachs.
The industry, still heavily dependent on subsidies and hamstrung by infrastructure bottlenecks, remains a volatile bet, however.
Major state firms have less problem securing loans from state lenders like China Development Bank, industry experts say. But smaller players find it hard to secure credit and have to turn to trust firms and financial leasing companies, which charge annual interest rates of 8-15 percent, compared with less than 6 percent for China's one-year benchmark rate.
Experts also cite a lack of confidence in the profit outlook for solar power plants, which in theory deliver returns of 10-15 percent under long-term power purchase contracts with state utilities but in practice face problems with subsidy collection and panel quality, among other things.
"For most solar developers, banks are not going to give them money unless they have collateral or find loan guarantors," said Wilson Li, a manager at the trust unit of state-run investment firm Guolian Group, which is involved in solar financing.
Reuters: http://www.reuters.com/article/2015/04/30/us-china-solar-financing-idUSKBN0NK2L120150430
Business Insider: http://www.businessinsider.com/r-china-solar-expansion-needs-billions-from-wary-investors-2015-4
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China's solar growth facing funding shortfall, reports Reuters
Apr 30, 2015 | PV Magazine
By IAN CLOVER
Ambitious capacity expansion plans throughout the Chinese solar industry could spell financial trouble for many Chinese solar companies this year, reports Reuters.
Following the announcement by China’s National Energy Administration (NEA) that it has increased the country’s solar PV goal this year by 70% to 17.8 GW, a number of already heavily indebted solar companies are set to test the confidence of investors in the sector, which has suffered in the wake of a series of global defaults caused by the recent financial crisis.
As revealed last week by IHS, China currently dominates the global solar module industry, but many billions of dollars in investment are required in the coming years if the sector is to be able to maintain its stranglehold on the industry.
However, faced with the prospect of pouring more funds into many debt-laden private businesses, some state banks are wavering, reports Reuters, who claim that the experience of writing off billions of dollars via a series of plant closures and defaults in the past two years has left many fingers burnt.
According to an executive at Industrial and Commercial Bank of China (ICBC), support for the solar sector will only be “limited” this year, particularly as China looks to developed its distributed generation (DG) solar industry – a pivot that requires more small-scale solar projects that experts argue are less appealing to large investors. Small players in China can find it difficult to secure credit from banks, whereas major state firms usually have very few problems.
Despite these fears, China’s PV potential and ambitions could still be met, with Shunfeng CEO Eric Luo confidently telling pv magazine this week that the company is pouring $50 million into new Suntech technology enhancements such as PERC and HJT as it positions itself to take advantage of what is a rapidly changing industry.
A changing industry
This slow evolution of China’s solar PV industry is likely propel further growth and investment, and the signs are that the country’s leading solar companies have already made plans – like Shunfeng – to adapt to these new conditions.
Trina Solar recently teamed up with a trust unit of Ping An – an insurer – on a 1 GW solar PV project over the next three years, with Ping An providing bridge financing in exchange for a 49% share in the projects.JinkoSolar, as well as Trina, have also announced plans to spin off their power plants for overseas listings to raise capital, and Goldman Sachs has bought $100 million in convertible bonds from GCL New Energy.
However, Yingli Green Energy’s recent announcement that it has enough money to pay off $200 million in medium-term notes has been met within the industry as a sign that the solar giant is seeking to allay fears as to its long-term financial health. Last week, the company eased its financial position somewhat with the sale of vast tracts of idle land that had remained undeveloped under Yingli’s ownership.
http://www.pv-magazine.com/news/details/beitrag/chinas-solar-growth-facing-funding-shortfall--reports-reuters_100019294/#ixzz3YnTrVVGo
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Apr 30, 2015 | PR Newswire
Over the course of the week Shunfeng International Clean Energy (SFCE), along with its subsidiary companies, Shunfeng Photovoltaic, Suntech, Sunways, SAG Solar, Taiwan Carbon Nanotube, Powin Energy, and meteocontrol, participated at the ninth annual SNEC PV Power Expo in Shanghai. SFCE CEO Eric Luo joined 27 other C-Suite level executives in the PV industry at the Solar Leader Dialogue Session on April 27 at the SNEC PV Power Expo. Luo discussed emerging PV technology trends and how SFCE is actively shaping a new energy industry through solutions mindful of customers' needs.
"The energy sector and more specifically the PV industry is shifting. As the price of oil has declined and renewables become more efficient as investments grow and technology advances, the energy industry pattern has fundamentally changed. The efficiency gains brought about by this industry revolution are gradually being reflected in the industry's value chain. SFCE is leading the way in this effort through a series of acquisitions and industry consolidation, positioning SFCE as the world's leading provider of clean energy solutions. Our rapid expansion is a testament to the transforming industry's growing need, as well as new market demand, for new energy solutions," said Luo.
On the side-lines of the conference, SFCE also hosted the World of Clean Energy Seminar at the Shanghai Pudong Kerry Hotel onApril 28. The event, attended by PV plant investors, independent developers, and EPC contractors from around the world, discussed how to improve generation efficiency and quality assurance of PV power plants. In his welcome speech, Luo introduced SFCE's international acquisition strategy and results from the past year, explaining that through its leading international products and technologies, as well as the ability and vision to integrate through the entire industry chain, SFCE provides a global one-stop PV shop for EPC and OM integrated solutions. David Hogg, CEO of SFCE subsidiary SAG Solar, also discussed current problems and challenges facing the construction of PV power plants. He presented in detail SFCE's integrated EPC and OM solutions for the PV industry, which, without reducing current margins, not only does away with redundant PV systems, but also optimizes and increases production capacity.
"Through a series of strategic acquisitions and integrations, SFCE also provides low-carbon integrated solutions for cities, communities, and commercial-facilities, providing a win-win energy conservation and cost-savings solution for customers. SFCE's energy management contract (EMC) business model provides customers project development, design, construction and free long-term operation and maintenance, relieving them of capital investment as well as long-term maintenance costs. Through the use of PV power, ground source heat pumps, LED lighting, energy storage and monitoring technologies and products, SFCE's low-carbon integrated energy solution allows users to enjoy clean energy while reducing their energy consumption by 50-70 percent," remarked Luo.
"This week we had the opportunity to connect with customers and leaders in the solar industry and share our PV plant EPC and OM services, as well as low-carbon integrated solutions. As we progress from a world dependent on hydrocarbons to a world with a diversified energy landscape, SFCE is capitalizing on its technological advancements in the clean-tech sector to address the fiscal and environmental constraints of the traditional energy industry. Through the integration of our comprehensive clean energy technologies, we are actively enabling companies to establish long-term project stability and reliability. We believe that our solution, which offers clean energy generation technology including PV and wind, energy saving technologies such as ground source heat pumps (GSHP) and LEDs, complimented by energy storage technology and our EMC business model, SFCE can work together with companies and governments alike to make the era of the green city a reality," said Luo.
About SFCE
Shunfeng International Clean Energy Limited (SFCE) is committed to becoming the largest low-carbon, integrated, clean energy generation provider globally. Through strategic acquisitions and integration, SFCE owns a number of well-known product and technology brands in the industry. SFCE fosters a continuous improvement in energy generation including in solar, wind, ocean 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 such as business facilities, office buildings, schools, hospitals sports stadiums and households. SFCE's energy solutions can achieve energy cost reductions of 50% - 70%, creating energy generation choices for its customers to reduce both carbon emissions and energy costs.
http://www.prnewswire.com/news-releases/shunfeng-international-clean-energy-shares-vision-for-the-era-of-the-green-city-during-2015-snec-pv-power-expo-300074953.html
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Press Release: Shunfeng International Clean Energy Shares Vision for the Era of the Green City during 2015 SNEC PV Power Expo
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