Latest news with #LongiGreenEnergy
Zawya
16 hours ago
- Business
- Zawya
Losses, pricing reform in focus as Shanghai hosts world's largest solar conference
SHANGHAI: As the world's biggest solar energy conference kicks off in Shanghai on Tuesday, the mood is likely to be subdued as Chinese solar panel producers grapple with oversupply and price reforms. Most of the world's solar farms are powered by cells and modules made in China, but the country's top producers are facing billions of dollars in losses as breakneck competition has pushed prices below cost level. Producers are trimming back production in response, just as they also face uncertainty about the outlook for demand due to policy changes on solar power project investment. Participants at the annual SNEC PV+ Photovoltaic Power Conference and Exhibition - which runs until Friday and is expected to draw half a million people from around the world - will be watching speeches from executives at top manufacturers like Trina Solar and Longi Green Energy for what comes next. Global output of solar panels dropped 7% in May from the previous month and will fall by another 4-5% in June, according to industry research outlet Shanghai Metals Market. But that may be a drop in the ocean as production capacity in China alone has reached more than twice the level of global demand in recent years. Last year, solar manufacturing heads called for help from the Chinese government, which subsequently introduced limited measures such as voluntary investment guidelines for solar photovoltaic (PV) manufacturing projects in an effort to rein in overcapacity. Still, China solar module prices as of the end of May were down nearly 30% from a year earlier, according to the OPIS assessment for advanced TOPCon modules. Complicating matters is uncertainty about the demand outlook for cells and modules as Beijing is scaling back subsidies for renewable energy projects after the boom in solar and wind power installations. New solar plants commissioned after June 1 will have to sell their power into the market instead of receiving a guaranteed rate benchmarked to the price of coal. The industry is still waiting for most of China's provincial governments to explain how their power auctions will work, and whether generators will receive a price backstop, known as a contract for difference. Officials in renewables-rich Inner Mongolia decided not to offer any price guarantee for new renewables built in the province's eastern grid, according to a report from industry website citing official documents. "In my view, this is like the provincial government saying: 'We don't need any more renewables this year,'" said David Fishman, principal at Hong Kong-based the Lantau Group, an energy-focused consultancy, of the plan in a social media post on May 30. "'We don't care if anyone builds a single new wind or solar farm this year... If you still want to build, you'll have to find your own customers - don't come looking for me to derisk your project!'" (Reporting by Colleen Howe; Editing by Susan Fenton)
Reuters
21 hours ago
- Business
- Reuters
Losses, pricing reform in focus as Shanghai hosts world's largest solar conference
SHANGHAI, June 10 (Reuters) - As the world's biggest solar energy conference kicks off in Shanghai on Tuesday, the mood is likely to be subdued as Chinese solar panel producers grapple with oversupply and price reforms. Most of the world's solar farms are powered by cells and modules made in China, but the country's top producers are facing billions of dollars in losses as breakneck competition has pushed prices below cost level. Producers are trimming back production in response, just as they also face uncertainty about the outlook for demand due to policy changes on solar power project investment. Participants at the annual SNEC PV+ Photovoltaic Power Conference and Exhibition - which runs until Friday and is expected to draw half a million people from around the world - will be watching speeches from executives at top manufacturers like Trina Solar ( opens new tab and Longi Green Energy ( opens new tab for what comes next. Global output of solar panels dropped 7% in May from the previous month and will fall by another 4-5% in June, according to industry research outlet Shanghai Metals Market. But that may be a drop in the ocean as production capacity in China alone has reached more than twice the level of global demand in recent years. Last year, solar manufacturing heads called for help from the Chinese government, which subsequently introduced limited measures such as voluntary investment guidelines for solar photovoltaic (PV) manufacturing projects in an effort to rein in overcapacity. Still, China solar module prices as of the end of May were down nearly 30% from a year earlier, according to the OPIS assessment for advanced TOPCon modules. Complicating matters is uncertainty about the demand outlook for cells and modules as Beijing is scaling back subsidies for renewable energy projects after the boom in solar and wind power installations. New solar plants commissioned after June 1 will have to sell their power into the market instead of receiving a guaranteed rate benchmarked to the price of coal. The industry is still waiting for most of China's provincial governments to explain how their power auctions will work, and whether generators will receive a price backstop, known as a contract for difference. Officials in renewables-rich Inner Mongolia decided not to offer any price guarantee for new renewables built in the province's eastern grid, according to a report from industry website citing official documents. "In my view, this is like the provincial government saying: 'We don't need any more renewables this year,'" said David Fishman, principal at Hong Kong-based the Lantau Group, an energy-focused consultancy, of the plan in a social media post on May 30. "'We don't care if anyone builds a single new wind or solar farm this year... If you still want to build, you'll have to find your own customers - don't come looking for me to derisk your project!'"
Bloomberg
27-05-2025
- Business
- Bloomberg
China's Longi Shuffles Leadership as Solar Losses Deepen
The founder of one of China's biggest solar manufacturers, Longi Green Energy Technology Co., will resign from his role overseeing day-to-day operations, as deepening losses plague the company and its peers across the sector. Li Zhenguo, who founded the firm about two decades ago, has stepped down from the roles of general manager, board member and legal representative, according to a Shanghai Stock Exchange filing late on Monday. Instead, he will lead the company's research institute and serve as the chief technology officer of its technology management center.
Yahoo
30-04-2025
- Business
- Yahoo
China's solar industry remains in red as trade war adds to problems
By Colleen Howe BEIJING (Reuters) -China's solar manufacturers reported losses this week as U.S. President Donald Trump's trade war put further pressure on demand in an industry where top manufacturers were already facing low prices and tariffs on exports to the United States. Top producers Longi Green Energy and JinkoSolar both reported a net loss of 1.4 billion yuan ($193 million) for the first quarter, while losses for peers JA Solar and Trina Solar totalled 1.6 billion yuan and 1.3 billion yuan, respectively. Longi, which also turned in a net loss of 8.6 billion yuan for 2024, told analysts in a call that demand for solar products was expected to be flat year-on-year in 2025. "During the reporting period, solar industry supply chain prices were at a low level, combined with overseas trade policies impacting demand, all segments of the industry were under pressure," said Jinko, where losses increased from 473.7 yuan in the fourth quarter of last year. The company's sales of solar products, including silicon wafer, solar cells and modules, fell 12.68% year-on-year to 19,130 megawatts in the quarter. Jinko said it saw the fastest growth in the Asia Pacific and Africa regions, although China, the U.S. and Europe remain the largest markets. Even before Trump's trade war, in which he has levied 145% tariffs on imports of Chinese goods, Chinese solar exports were facing tariffs in the U.S., the second-biggest solar market after China. As a result, Chinese manufacturers had set up production bases in third countries in Southeast Asia - countries that U.S. manufacturers later targeted with trade cases alleging they were flooding the market with cheap goods. In response to one of those cases, the U.S. last week finalised tariffs of as high as 3,500% on solar products from Chinese solar manufacturers with factories in Malaysia, Cambodia, Thailand and Vietnam. The U.S. made up about 5% of Jinko's sales in the quarter, it said in its investor call. In addition to solar products, tariffs were also making it prohibitively expensive to sell battery storage systems to the U.S., Jinko told investors. Meanwhile, CSI Solar, a NASDAQ-listed subsidiary of China's Canadian Solar, plans to accelerate the relocation of manufacturing to low-tariff regions and is negotiating with major clients and suppliers to reasonably share tariff costs, it said in a filing with the U.S. Securities and Exchange Commission on Monday. At the same time, CSI said it was preparing for potential U.S.-China negotiations and the adjustment of tariffs to a more reasonable range, while also pursuing tariff exemptions for some products. Sign in to access your portfolio
