Solar Energy manufacturers in the US and Korea are being eclipsed by Chinese companies.
Prior to the global meltdown many governments adopted low carbon and green company growth models with aggressive alternative energy incentives for alternative energy companies. Many companies jumped on this clean energy bandwagon with large-scale investments in green technology. Unfortunately, with the drop in world wide demand and increased competition from very aggressive companies in China a lot of these alternative energy companies are now in trouble. The global financial crisis really put a damper on things, especially with purchases coming out of Europe. Solar technology companies have been hardest hit and many have folded. In the United States – Evergreen Solar, SpectraWatt and Solyndra have all filed for bankruptcy.
The Korean Herald reports similar carnage in Korea:
Last month, Mirinet Solar, a promising solar cell producer, filed an application for corporate rehabilitation with the court. Many small players in this sector are reportedly operating in the red.
Faced with a negative outlook, large conglomerates are also scrapping or postponing their investments. For instance, Hyundai Heavy Industries has put off its $700 million project to build the world’s largest solar power plant in the United States.
LG Chemical also announced last month that it would consider delaying its plan to invest 490 billion won in its polysilicon plant in Yeosu due to the increased uncertainty in the global photovoltaic market.
As such, the fledgling domestic renewable energy industry is threatened by unfavorable market conditions. In times like these, it is necessary for the government to help the shaky local industry stay afloat until global markets recover.
In this regard, the government’s package unveiled Monday to revitalize the sagging industry came at the right time. As domestic companies reel from slumping global markets and shy away from investment, it is necessary to boost domestic demand for renewable energy to take up the slack.
Under the plan, the government will implement the renewable portfolio standard next year as scheduled. The RPS requires the nation’s five power companies to generate 2 percent of their power output using renewable energy sources.
These new incentives are great news for Korean alternative energy companies, and will help them to survive the onslaught of stiff competition from China in this buyer’s market. Hopefully they will be able to ride out the global financial downturn.
IMAGE ATTRIBUTION: Some rights reserved by dalcrose
Filed under: Alternative Energy News
Like this post? Subscribe to my RSS feed and get loads more!
Leave a Reply