Solar industry players hit by rising orders

By Du Juan

A worker assembles solar battery panels at a factory in Nantong, Jiangsu province. Experts said at the 2010 China (Chengdu) New Energy International Forum and Fair that the government should take more steps to develop the domestic solar energy market. [Zhang Xiaoyu / for China Daily]
CHENGDU - Xushuang Solar Company, a subsidiary of Hebei Dongxu Investment Group Co, on Wednesday inked an agreement with its Tanzanian partner to invest 500 million yuan ($74.77 million) in a thin-film solar cell project in the African country.

The project will have a production capacity of 20 megawatts (mW).

On the same day, during the China (Chengdu) New Energy International Forum & Fair 2010, Tongwei Group signed another contract with the economic development zone of Shuangliu county in Chengdu to build a base for a whole photovoltaic production line.

The solar energy industry usually hits a bottleneck when the big players start to face production pressure.

And, they have already been hit by mounting order books.

Xie Xiaonan, vice-president of Suntech Power Holdings Co, said the company's production had touched 1,000 mW by Sept 6, and he estimated whole year production to touch 1,500 mW.

"We have to speed up to expand because of the increasing order book. The 1,500 mW can only meet 75 percent of our clients' needs," Xie said.

Experts said the government should take more steps to enlarge the domestic solar energy market and increase the domestic demand for photovoltaic products to help in the sustainable development of the industry.

Shi Dinghuan, counselor of the State Council of China and president of the Chinese Renewable Energy Society, said the nation must seriously regard the renewable energy sector as a substitute for traditional energy sources instead of as a supplement to it.

China produces nearly 40 percent of the photovoltaic cells in the world, but more than 90 percent of its products are exported. The photovoltaic products manufacturers depend heavily on foreign solar energy markets.