China’s state-controlled banks are signing billions of dollars of credit lines with wind and solar manufacturers to fund capacity expansion and overseas business. So reports Bloomberg.
One recent recipient, Xinjiang Goldwind Science Technology & Co. (2208), China’s second-largest wind-turbine maker, signed a financial agreement with China Development Bank Corp. for wind power projects worth $5.5 billion, says Bloomberg. Other recipients of government backed funding include Sinovel Wind Group Co. (601558) and solar manufacturer Suntech Power Holdings Co. Ltd.
China’s wind market almost doubled each year from 2006 – 2010, and now Goldwind and domestic rivals are seeking orders overseas to overcome slowing sales growth at home after the government tightened criteria for approving new projects, says Bloomberg.
Meanwhile, top Chinese solar industry CEO’s from Suntech Power Holdings Co and Trina Solar Ltd. (TSL) predict that China may double solar installations, adding 4-5 gigawatts this year versus the 2.2 gigawatts installed in 2011. They believe that China will absorb excess production that depressed prices in 2011 and help drive a solar rebound in 2012.
The estimates suggest that China will surpass their government’s targets, says Bloomberg.
Bloomberg New Energy Finance, on the other hand, expects Chinese installations of 3 gigawatts this year and world demand from 25.5 gigawatts to 32.8 gigawatts.
To read the full article by Bloomberg cited in this story, click here
To read the full article by Bloomberg cited in this story, click here