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Today's Topics:
1. Chinese solar and now wind-turbine industries pledge
co-operation (Stephen Loosley)
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Message: 1
Date: Fri, 18 Oct 2024 19:41:17 +1030
From: Stephen Loosley <[email protected]>
To: "link" <[email protected]>
Subject: [LINK] Chinese solar and now wind-turbine industries pledge
co-operation
Message-ID: <[email protected]>
Content-Type: text/plain; charset="UTF-8"
(Probably best one resource solar/wind soonish then?)
"China?s wind-turbine makers vow ?self-discipline? in pledge to end price war"
Twelve leaders in the sector follow solar equipment makers in an agreement to
end their damaging campaign of undercutting
By Yujie Xue Published: 4:30pm, 17 Oct 2024
https://www.scmp.com/business/climate-and-energy/article/3282739/chinas-wind-turbine-makers-vow-self-discipline-pledge-end-price-war
As new entrants eye China solar sector, overcapacity and price war concerns
mount
China?s major wind-turbine manufacturers pledged to end the industry?s
prolonged price war, following a similar announcement by the country?s
solar-panel industry a few days earlier.
Twelve leading players ? including Goldwind, Envision, Mingyang Smart Energy,
Shanghai Electric and Dongfeng Electric ? signed the promise at a conference in
Beijing on Wednesday, agreeing to improve self-discipline in setting prices and
avoid price collusion.
Undercutting in the wind-energy industry is hurting manufacturers? earnings and
hindering the sector?s sustainable development, forcing most companies to take
losses, said Qin Haiyan, the head of the China Wind Turbine Association.
?Wind power is an advanced productive force, and wind turbines require a long
usage cycle and represent high-value investment,? said Lou Yimin, Envision
Energy?s senior vice-president and president of the wind-turbine division. ?We
must look to the long term and focus on the return on investment over a full
life cycle of 25 to 30 years.?
He said he hoped the industry would return to a path of healthy development and
rationality through the joint pledge.
The announcement came after the 780-member China Photovoltaic Industry
Association hosted a meeting in Shanghai on Monday, during which companies
including Longi Green Energy, Tongwei and JinkoSolar reached a consensus to
prevent ?vicious? competition.
China led the world in wind and solar capacity growth last year, adding 76
gigawatts (GW) of wind capacity, 66 per cent of the world?s total, and more
than 60 per cent of the world?s 425GW of solar photovoltaic (PV) capacity, the
International Energy Agency (IEA) said in a report on Wednesday.
Beijing has called for the country to peak carbon emissions by 2030 and have
non-fossil fuel sources account for 80 per cent of the total energy mix by 2060
? the year China aims to achieve net-zero emissions. Companies have rushed to
enter the renewable-power business to ride the tide of this government push.
Rapid expansion of manufacturing has slashed the cost of PV modules by 50 per
cent since December 2022, according to IEA.
With fierce competition and technological advancements, the price of Chinese
wind turbines dropped by more than 30 per cent last year, according to Wood
Mackenzie.
With losses mounting, Zhu Gongshan, the founder and chairman of GCL Technology,
one of China?s largest solar material makers, called in June for government
intervention and industry discipline to help correct the ?severe mismatch?
between supply and demand.
It is unclear when the agreements will take effect. However, the pledges
potentially put a floor under the market price for wind turbines and solar
panels, according to David Fishman, a manager at power sector consultancy The
Lantau Group.
?Obviously the price wars are very painful for all the players,? he said. ?Many
of them could be operating at a loss and burning through cash because the
alternative is losing market share to your competitors who are doing the same
thing.
?It was a war of attrition. You?d hope that this action would help to raise the
market price and restore profitability to those that were below the profit
margin.?
Shares in Danish company Vestas Wind Systems, the world?s largest wind-turbine
manufacturer, surged 2.7 per cent on the Nasdaq Copenhagen exchange on
Wednesday after the announcement.
Shares of Shanghai-listed Mingyang dropped by 1.7 per cent to close at 10 yuan
on Thursday, while Hong Kong-listed Goldwind rose 0.3 per cent to HK$5.90.
Yujie is a business reporter for the Post with a focus on energy transition,
climate change and sustainability issues. She previously worked as a technology
reporter in
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