China's Solar Industry Hurt by its Vast Expansion

choi

Keith Bradsher, Strategy of Solar Dominance Now Poses a Threat to China. New York Times, Oct 5, 2012.
http://www.nytimes.com/2012/10/0 ... test-for-china.html

(a) Excerpt in the window of print:
(i) Despite rising demand, a glut of solar panels.
(ii) Banks resist writing off billions in loans to the industry.

(b) Quote:

"Trina shares have dropped 85 percent in the last three years and Suntech shares have fallen more than 98 percent in the last five years. Both trade on the New York Stock Exchange.

"Chinese companies have struggled even though a dozen solar companies in the United States and another dozen in Europe have gone bankrupt or closed factories since the start of last year. The bankruptcies and closures have done little to ease the global glut and price war because China by itself represents more than two-thirds of the world’s capacity.

"The average cost of electricity from solar panels in China works out to 19 cents per kilowatt-hour, said Mr Li. That is three times the cost of coal-fired power. But it is a marked improvement from 63 cents per kilowatt-hour for solar power four years ago.

(c) My comment:
(i) View the graphic first to see if you want to continue reading. It is known for some months that China's solar industry is in hot water.

hot water (n; First Known Use 1537): "TROUBLE, DIFFICULTY <was in hot water with the authorities>"
http://www.merriam-webster.com/dictionary/hot%20water
(ii) LI Junfeng  李 俊峰
(iii)  Trina Solar Ltd  天合光能有限公司 (founded in 1997; based in 江苏省常州市)
http://www.trinasolar.com/cn/