Revised Green Rule Ups China`s Solar Energy Use

Mainland China`s Civilian Construction Energy Conservation Management Regulation, which came into effect recently, is helping boost consumption of solar energy there via offering incentives, drawing Taiwanese equipment suppliers to tap business opportunities.

China`s Cabinet, the State Council, enacted the regulation in July this year, ruling that existing buildings and newly completed buildings as homes, government buildings, commercial buildings, and schools must be furnished with solar energy equipment. Or owners of such buildings would be penalized.

Solar energy industry watchers pointed out that the mainland`s National Development and Reform Commission had introduced subsidies for solar energy consumption, giving three Chinese yuan for each kilowatt hour of solar electricity.

Industry watchers believe the new green regulations would boost demand for solar energy products in China, which is driving Taiwan-based solar energy equipment suppliers as Wafer Works Corp, Green Energy Technology Inc, Panjit International Co Ltd, and Motech Industrial Inc to step up expanding presence in the mainland.

Wafer Works and Panjit are newcomers to the mainland`s solar-energy market. Wafer Works has invested in silicon wafer producer Solargiga in the mainland. The wafer maker now puts out 200 megawatts of materials a year. With output volume set at 300 megawatts for next year, Solargiga is poised to become the mainland`s No.1 silicon-wafer maker.

Solargiga has recently acquired a piece of land enough for a 500 megawatt line. The company`s solar cell venture will ramp up output to 100 megawatts by the end of this year, which is estimated to magnify its muscle.

Panjit has invested in a solar cell and module factory in Jiangsu. The venture`s revenue exceeded Panjit`s in the first half this year and its operation has continued expanding. Panjint plans to boost output at the mainland factory to 150-200 megawatts by the end of next year from current 80 megawatts.

Motech plans to equip its factory in Kunshan with production lines for 65 megawatts of solar cells by the end of this year.

Green Energy has acquired 200 hectares of land in Inner Mongolia for crystal-ingot production lines planned to have initial output capacity of 1,000 megawatts.

Source: CENS