But I'm beginning to think the big mover will be the government of China. It's going to happen. They can't get enough energy for the future.
I agree with you. The big question will be, how quickly will they move. We know that when they get a bee in their bonnet, they can move very, very quickly. They are building a lot of home grown capacity right now. The really big push is coming soon--we can't say exactly when, but, IMHO, in the next couple of years.
China state-owned power companies to build solar farms
Nuying Huang, Taipei; Willie Teng, DIGITIMES [Wednesday 2 March 2011]
digitimes.com
China's five largest state-owned power companies - China Datang, China Guodian, China Huaneng, China Huadian and China Power Investment - reportedly have plans to set up their own solar farms, which could impact private solar system companies and shake up China's solar market down the road, according to industry sources.
Electricity distribution in China is controlled by the five major state-owned power generators mentioned and two government-run grid operators - State Grid and Southern Power Grid. The power companies build and operate a wide-range of power stations and sell the electricity generated to the grid operators, which in turn distribute to the end-use market. Private solar farms also rely on grid operators to purchase their electricity to receive government subsidies.
The state-owned power companies are establishing solar farms in accordance with the country's new policies in energy saving. However, their government connection and long standing relations with grid operators provide advantages in securing demand for their solar electricity. Combined with their strong financial position and large scale operations, private solar companies could see stronger competition.
Currently only Guodian has integrated upstream and has investments along the supply chain from solar modules to polycrystalline silicon materials. Though China Guodian's operation scale in the upstream segments is still small compared to China's vertically-integrated companies, its influence in the end-use market will be highly advantageous. |
