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Yahoo
5 hours ago
- Business
- Yahoo
Analysis-China's overcapacity crackdown faces litmus test in solar sector
By Joe Cash and Colleen Howe BEIJING (Reuters) -China's efforts to curb industrial overcapacity face their first test in the indebted and bloated polysilicon sector, a key cog in solar cell production, where analysts say it is easiest for Beijing to intervene but still difficult to succeed. Under the plan, devised by industry players in the presence of Chinese regulators, big producers will pool 50 billion yuan ($7 billion) to buy out the least efficient facilities and shut them down, then form a cartel to halt relentless price wars. Ideally, when prices rise, the loss-making producers will turn profitable and reimburse the debt incurred in the process. Reduced output and higher polysilicon costs would force solar panel makers - which can produce roughly twice as much annually as the world buys and have been a source of trade tensions between China and the West - to consolidate. But analysts see risks at every stage of this plan. First, it is unclear if the industry can agree who's in or who's out of the cartel. GCL Technology Holdings, one of the biggest producers, said earlier this month cartel planning was close to wrapping up but declined to provide details of the other participants. Banks - whose incentive to finance this acquisition is to ensure that what they rate as a "safe" sector doesn't turn to "risky" - would likely be involved in the process, said Dan Wang, China director at Eurasia Group. Analysts warn local authorities, who have strived to fulfil Beijing's strategic green energy vision by handing out subsidies, tax breaks and cheap land to the sector, may not want the solar supply chains on their turf to shut. "Which local government is going to let go of their industry first?" said Max Zenglein, senior economist for the Asia-Pacific at The Conference Board research group. "They're going to be very cautious." Finally, even if the cartel does form, any success creates the conditions for failure: after prices climb, members might be tempted to raise output and reap the profits. Reformers face all these risks despite the industry having fewer players and fewer supply chain inputs than most other sectors in the world's second-largest economy, where overcapacity is endemic and deflationary, and threatens trade relations and long-term growth. "Success is hardly a foregone conclusion," Gavekal Dragonomics analysts Tilly Zhang and Wei He said in a note. If the overcapacity crackdown "fails to get traction in polysilicon, it will struggle in the many other industries" where the government has less capacity to foster swift changes, they said. GCL's peer Tongwei declined to comment. Polysilicon producers Daqo New Energy and TBEA did not respond to requests for comment. The solar and metals industry associations, the National Development and Reform Commission (NDRC)- China's state planner - and the Ministry of Industry and Information Technology also did not respond to requests for comment. IS EVERYONE GAME? Over the past five years, the top four Chinese manufacturers alone built about two-thirds of the industry's capacity, which stood at 3.25 million metric tons at the end of 2024, according to Bernreuter Research, a consultancy. In 2025, Bernreuter anticipates an average utilisation of 35%-40%, down from 57% last year. Morningstar estimates about 965,000 tons of polysilicon capacity was built or is still under construction this year, citing the China Photovoltaic Industry Association. Past attempts to get the solar industry to self-regulate have failed. Last October, the solar industry body proposed a price floor for solar modules, but the temptation for manufacturers to undercut competitors proved too enticing. The NDRC called for a ban on new production in an online meeting in February. Still, Karamay, a city in the northwestern region of Xinjiang announced a 3 billion yuan solar module manufacturing plant as recently as May, Chinese media reported. The Xinjiang energy regulator did not respond to phone calls from Reuters. A new 140,000-ton polysilicon manufacturing plant in Qinghai, a major provincial investor, also started test operations in March, according to a trade media report. The energy regulator for northwestern China, which includes Qinghai, did not respond to a faxed request for comment. PAIN THRESHOLD In the event that the polysilicon cartel overcomes industry and local government opposition, it can raise prices to levels that the least competitive firms in the downstream solar panels sector cannot afford, forcing their exit, analysts say. "Unless I see a lot of defaults all of a sudden really shrinking the size of the industry, I don't see how this is going to work," said Alicia Garcia-Herrrero, Asia-Pacific chief economist at Natixis. She said that would test the Chinese leadership's tolerance for a bloodbath in an industry that it had championed as a national priority. The case for protecting strategic priorities also applies to other sectors, from electric vehicles and batteries to shipbuilding, all with supply chains much more complex than solar. "It's very easy to build capacity to burn money, but then to scale it down and direct that in a healthy manner is much more difficult," said The Conference Board's Zenglein. ($1 = 7.1815 Chinese yuan renminbi)
Reuters
5 hours ago
- Business
- Reuters
China's overcapacity crackdown faces litmus test in solar sector
BEIJING, Aug 19 (Reuters) - China's efforts to curb industrial overcapacity face their first test in the indebted and bloated polysilicon sector, a key cog in solar cell production, where analysts say it is easiest for Beijing to intervene but still difficult to succeed. Under the plan, devised by industry players in the presence of Chinese regulators, big producers will pool 50 billion yuan ($7 billion) to buy out the least efficient facilities and shut them down, then form a cartel to halt relentless price wars. Ideally, when prices rise, the loss-making producers will turn profitable and reimburse the debt incurred in the process. Reduced output and higher polysilicon costs would force solar panel makers - which can produce roughly twice as much annually as the world buys and have been a source of trade tensions between China and the West - to consolidate. But analysts see risks at every stage of this plan. First, it is unclear if the industry can agree who's in or who's out of the cartel. GCL Technology Holdings ( opens new tab, one of the biggest producers, said earlier this month cartel planning was close to wrapping up but declined to provide details of the other participants. Banks - whose incentive to finance this acquisition is to ensure that what they rate as a "safe" sector doesn't turn to "risky" - would likely be involved in the process, said Dan Wang, China director at Eurasia Group. Analysts warn local authorities, who have strived to fulfil Beijing's strategic green energy vision by handing out subsidies, tax breaks and cheap land to the sector, may not want the solar supply chains on their turf to shut. "Which local government is going to let go of their industry first?" said Max Zenglein, senior economist for the Asia-Pacific at The Conference Board research group. "They're going to be very cautious." Finally, even if the cartel does form, any success creates the conditions for failure: after prices climb, members might be tempted to raise output and reap the profits. Reformers face all these risks despite the industry having fewer players and fewer supply chain inputs than most other sectors in the world's second-largest economy, where overcapacity is endemic and deflationary, and threatens trade relations and long-term growth. "Success is hardly a foregone conclusion," Gavekal Dragonomics analysts Tilly Zhang and Wei He said in a note. If the overcapacity crackdown "fails to get traction in polysilicon, it will struggle in the many other industries" where the government has less capacity to foster swift changes, they said. GCL's peer Tongwei ( opens new tab declined to comment. Polysilicon producers Daqo New Energy (DQ.N), opens new tab and TBEA ( opens new tab did not respond to requests for comment. The solar and metals industry associations, the National Development and Reform Commission (NDRC)- China's state planner - and the Ministry of Industry and Information Technology also did not respond to requests for comment. Over the past five years, the top four Chinese manufacturers alone built about two-thirds of the industry's capacity, which stood at 3.25 million metric tons at the end of 2024, according to Bernreuter Research, a consultancy. In 2025, Bernreuter anticipates an average utilisation of 35%-40%, down from 57% last year. Morningstar estimates about 965,000 tons of polysilicon capacity was built or is still under construction this year, citing the China Photovoltaic Industry Association. Past attempts to get the solar industry to self-regulate have failed. Last October, the solar industry body proposed a price floor for solar modules, but the temptation for manufacturers to undercut competitors proved too enticing. The NDRC called for a ban on new production in an online meeting in February. Still, Karamay, a city in the northwestern region of Xinjiang announced a 3 billion yuan solar module manufacturing plant as recently as May, Chinese media reported. The Xinjiang energy regulator did not respond to phone calls from Reuters. A new 140,000-ton polysilicon manufacturing plant in Qinghai, a major provincial investor, also started test operations in March, according to a trade media report. The energy regulator for northwestern China, which includes Qinghai, did not respond to a faxed request for comment. In the event that the polysilicon cartel overcomes industry and local government opposition, it can raise prices to levels that the least competitive firms in the downstream solar panels sector cannot afford, forcing their exit, analysts say. "Unless I see a lot of defaults all of a sudden really shrinking the size of the industry, I don't see how this is going to work," said Alicia Garcia-Herrrero, Asia-Pacific chief economist at Natixis. She said that would test the Chinese leadership's tolerance for a bloodbath in an industry that it had championed as a national priority. The case for protecting strategic priorities also applies to other sectors, from electric vehicles and batteries to shipbuilding, all with supply chains much more complex than solar. "It's very easy to build capacity to burn money, but then to scale it down and direct that in a healthy manner is much more difficult," said The Conference Board's Zenglein. ($1 = 7.1815 Chinese yuan renminbi)
Yahoo
6 hours ago
- Business
- Yahoo
Analysis-China's overcapacity crackdown faces litmus test in solar sector
By Joe Cash and Colleen Howe BEIJING (Reuters) -China's efforts to curb industrial overcapacity face their first test in the indebted and bloated polysilicon sector, a key cog in solar cell production, where analysts say it is easiest for Beijing to intervene but still difficult to succeed. Under the plan, devised by industry players in the presence of Chinese regulators, big producers will pool 50 billion yuan ($7 billion) to buy out the least efficient facilities and shut them down, then form a cartel to halt relentless price wars. Ideally, when prices rise, the loss-making producers will turn profitable and reimburse the debt incurred in the process. Reduced output and higher polysilicon costs would force solar panel makers - which can produce roughly twice as much annually as the world buys and have been a source of trade tensions between China and the West - to consolidate. But analysts see risks at every stage of this plan. First, it is unclear if the industry can agree who's in or who's out of the cartel. GCL Technology Holdings, one of the biggest producers, said earlier this month cartel planning was close to wrapping up but declined to provide details of the other participants. Banks - whose incentive to finance this acquisition is to ensure that what they rate as a "safe" sector doesn't turn to "risky" - would likely be involved in the process, said Dan Wang, China director at Eurasia Group. Analysts warn local authorities, who have strived to fulfil Beijing's strategic green energy vision by handing out subsidies, tax breaks and cheap land to the sector, may not want the solar supply chains on their turf to shut. "Which local government is going to let go of their industry first?" said Max Zenglein, senior economist for the Asia-Pacific at The Conference Board research group. "They're going to be very cautious." Finally, even if the cartel does form, any success creates the conditions for failure: after prices climb, members might be tempted to raise output and reap the profits. Reformers face all these risks despite the industry having fewer players and fewer supply chain inputs than most other sectors in the world's second-largest economy, where overcapacity is endemic and deflationary, and threatens trade relations and long-term growth. "Success is hardly a foregone conclusion," Gavekal Dragonomics analysts Tilly Zhang and Wei He said in a note. If the overcapacity crackdown "fails to get traction in polysilicon, it will struggle in the many other industries" where the government has less capacity to foster swift changes, they said. GCL's peer Tongwei declined to comment. Polysilicon producers Daqo New Energy and TBEA did not respond to requests for comment. The solar and metals industry associations, the National Development and Reform Commission (NDRC)- China's state planner - and the Ministry of Industry and Information Technology also did not respond to requests for comment. IS EVERYONE GAME? Over the past five years, the top four Chinese manufacturers alone built about two-thirds of the industry's capacity, which stood at 3.25 million metric tons at the end of 2024, according to Bernreuter Research, a consultancy. In 2025, Bernreuter anticipates an average utilisation of 35%-40%, down from 57% last year. Morningstar estimates about 965,000 tons of polysilicon capacity was built or is still under construction this year, citing the China Photovoltaic Industry Association. Past attempts to get the solar industry to self-regulate have failed. Last October, the solar industry body proposed a price floor for solar modules, but the temptation for manufacturers to undercut competitors proved too enticing. The NDRC called for a ban on new production in an online meeting in February. Still, Karamay, a city in the northwestern region of Xinjiang announced a 3 billion yuan solar module manufacturing plant as recently as May, Chinese media reported. The Xinjiang energy regulator did not respond to phone calls from Reuters. A new 140,000-ton polysilicon manufacturing plant in Qinghai, a major provincial investor, also started test operations in March, according to a trade media report. The energy regulator for northwestern China, which includes Qinghai, did not respond to a faxed request for comment. PAIN THRESHOLD In the event that the polysilicon cartel overcomes industry and local government opposition, it can raise prices to levels that the least competitive firms in the downstream solar panels sector cannot afford, forcing their exit, analysts say. "Unless I see a lot of defaults all of a sudden really shrinking the size of the industry, I don't see how this is going to work," said Alicia Garcia-Herrrero, Asia-Pacific chief economist at Natixis. She said that would test the Chinese leadership's tolerance for a bloodbath in an industry that it had championed as a national priority. The case for protecting strategic priorities also applies to other sectors, from electric vehicles and batteries to shipbuilding, all with supply chains much more complex than solar. "It's very easy to build capacity to burn money, but then to scale it down and direct that in a healthy manner is much more difficult," said The Conference Board's Zenglein. ($1 = 7.1815 Chinese yuan renminbi)
Yahoo
4 days ago
- Science
- Yahoo
Scientists make incredible breakthrough that could revolutionize wearable tech: 'Ideally suited'
Think about the last time your smartwatch ran out of battery. Now imagine it recharging on its own — just from being in the sun. That's the kind of future a team of scientists in Singapore is working toward. According to a report from TechXplore, researchers at the National University of Singapore recently developed a solar cell that's not only powerful but also thin, bendable, and incredibly light. Unlike most solar panels, this one can absorb near-infrared (NIR) light — the kind we can't see, but that still reaches us even on cloudy days. In lab tests, it hit a record-breaking level of energy conversion, opening the door for a new wave of solar-powered wearables and smart devices. Researchers developed the innovation using a special type of solar tech known as a perovskite-organic tandem solar cell. These cells combine two materials to soak up more sunlight than traditional panels, including low-light conditions. That means more consistent energy generation, even when the sun isn't shining bright. "Thanks to their light weight and flexible form, [the solar cells] are ideally suited for devices such as drones, wearable electronics, smart fabrics, and other AI-enabled devices," said assistant professor Hou Yi, lead researcher and head of the Perovskite-based Multijunction Solar Cells Group at the Solar Energy Research Institute of Singapore. The breakthrough could allow devices to "harvest sunlight … without the need for bulky batteries," he added. This development comes after years of global research into how to make solar power more versatile and accessible. In this case, the team achieved an unprecedented 26.4% efficiency — the highest recorded for an NIR-absorbing tandem solar cell. It's a huge leap for solar tech, especially when applied to compact, mobile, and off-grid uses. Beyond convenience, this innovation supports a larger shift toward cleaner, more sustainable energy systems. By expanding where and how solar can be used — including in consumer gadgets — it reduces reliance on dirty fuels. It decreases pollution tied to mining and battery manufacturing. That's a win for both the environment and public health. While this tech isn't available in stores just yet, it's gaining attention as a promising platform for future solar-powered devices — and possibly even solar-powered clothing. With continued support and development, flexible solar cells could hit the market within the next few years. Installing solar panels is still the ultimate home energy hack, bringing your energy costs down to at or near $0. Solar power also helps reduce pollution and reliance on expensive, unstable energy grids. EnergySage offers a free service that makes it easy to compare quotes from vetted local installers. Homeowners can save up to $10,000 on solar installations by using this tool. Plus, going solar makes running electric appliances, including heat pumps, even more affordable. If you're looking to upgrade your home's HVAC, check out Mitsubishi's line of heat pumps. Which of these factors is the biggest obstacle preventing you from getting solar panels? The upfront cost The way they look Not sure where to start No concerns here! Click your choice to see results and speak your mind. Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
21-06-2025
- Science
- Yahoo
Researchers make game-changing breakthrough that could unlock low-cost energy: 'We have made a significant leap forward'
A solar cell development promises to improve the efficiency and durability of the energy-generating technology. The team of researchers, from South Korea's Ulsan National Institute of Science and Technology, detailed their findings in an April study published in Advanced Energy Materials and a May report. Professors BongSoo Kim, Jin Young Kim, and Dong Suk Kim worked with a multi-functional hole-selective layer in perovskite-organic tandem solar cells. The thin, flexible material reached 2.216 open circuit volts and 24.73% power conversion efficiency — indicating devices with these cells could function at maximum efficiency. Tandem solar cells are used in wearable devices and building-integrated photovoltaics, according to the UNIST news release. The different cells increase the spectrum of absorbable sunlight. The HTL joined two self-assembled molecules, and they formed strong chemical bonds with the metal ions in the perovskite. The mHTL "is carefully engineered to align its energy levels with the perovskite active layer, selectively extracting holes while blocking electrons, thereby reducing charge recombination losses." The report stressed the importance of efficient charge extraction via this setup, as sunlight cannot be transformed into an electric current unless the electrons and holes reach their electrodes. "Misaligned energy levels cause charge loss and reduced efficiency," it noted. "Moreover, the device maintained over 80% of its initial efficiency after prolonged exposure to high temperatures of 65 degrees Celsius and continuous illumination, demonstrating excellent long-term stability," the release stated. Improving solar cell performance is vital to pushing the clean energy sector forward. Solar is the cheapest form of electricity in countries around the world, and it produces no heat-trapping pollution. It is set to surpass wind and hydro as the top source of renewable power in the next handful of years, according to the International Energy Agency. To take advantage of the free energy generated by the sun, you can install solar panels or sign up for a community solar program. This will bring your energy bills close to zero dollars, and it will also help cool down the planet, which is rapidly warming because of humans' burning of dirty energy sources such as coal and gas — the fossil fuels that largely power grids around the globe. This study's science represents another step toward a cleaner, cooler future. What should the government do about the fast fashion industry? Set strict regulations Incentivize sustainable options Use both regulations and incentives Nothing Click your choice to see results and speak your mind. "By developing a self-assembled hole transport layer that improves charge extraction, interface stability, and structural durability, we have made a significant leap forward in enhancing the performance of tandem solar cells," BongSoo said. "This development brings us closer to realizing thin, flexible, and high-efficiency next-generation solar panels for practical applications." If you're interested in massively reducing your energy bills, consider buying solar panels. Checking out EnergySage is a great first step, as the organization has plenty of free tools to let you compare quotes from local installers and snag up to $10,000 in incentives. But if the upfront costs are too prohibitive, you can explore Palmetto's LightReach solar panel leasing program, which installs and maintains panels for no money down. Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don't miss this cool list of easy ways to help yourself while helping the planet.
