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      Solar energy companies report better results

      2013-11-13 08:23 Global Times Web Editor: qindexing
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      Some major solar energy companies that made losses last year reported profits in the third quarter, indicating that the solar industry is gradually improving after a difficult period caused by anti-dumping measures by the EU and the US last year, analysts said Tuesday.

      As of Tuesday, at least 10 A-share listed solar enterprises that made a loss last year had reported a rise in profits in the third quarter.

      "The recovery of the solar industry has mainly been due to supportive government measures, which led to fast expansion of solar energy use domestically," Sun Guangbin, secretary general of the solar PV products branch at the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told the Global Times Tuesday.

      Another reason for improved performance in the sector is that some companies have sought opportunities in new markets such as Japan, which has seen a rise in demand for solar power since its nuclear accident in 2011, Sun noted.

      But Sun also said some smaller solar energy companies are still struggling to survive.

      To support domestic solar energy use, the State Grid Corporation of China, the country's largest State-owned electric utility company, announced in October 2012 that it would allow small-scale distributed solar power plants with installed capacities of less than six megawatts to be connected to the grid from November 1.

      Later, in December 2012, the State Council released five measures including subsidies for small-scale distributed solar power stations to promote solar energy development.

      To resolve difficulties in financing for the solar industry, the China Banking Regulatory Commission also announced seven measures in October including offering diversified credit loans to solar companies.

      Boosted by the supportive policies, some major solar energy enterprises were able to reduce their inventories, with some of their workers working overtime to complete orders before the end of this year.

      "The photovoltaic modules we produced could not satisfy the rising demand from buyers recently," Wang Zhixin, director of the communications department at Yingli Green Energy Holding Co, told the Global Times Tuesday, adding that both prices and orders have risen since the third quarter.

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