Hareon Solar forms JV with Nereus Capital and Treasury Group

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  The new projects in India are expected to produce enough energy to power over 13,000 homes. Image: Hareon

Chinese solar energy company Hareon Solar has agreed to a joint venture (JV) with Nereus Capital and Treasury Group, with the JV company — Nereus Capital Investments Singapore — will be majority owned by Hareon Solar  and will invest in PV projects in India.

Nereus Capital Investments Singapore will develop, construct and operate around 32MW of projects through wholly owned project companies in India. The project companies will largely sell off electricity to publically listed companies in India, with the installations set to ramp up operations in late 2015.

The projects are expected to produce around 52,000,000 kWh of electricity annually — enough to power over 13,000 homes.

Dr. Jie Zhang, VP of global business development at Hareon Solar, said: “This is Hareon Solar’s third Indian investment this year, following announcements last month about our partnership with ReNew Power for a 72MW project, and our partnership with Keshav Power Limited for a strategic investment in solar cell manufacturing unit in India. Hareon Solar has been serving India market since 2011, and we are committed to investing more in India.”

ET Solar launches “Smart Flex” modules in Mexico

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  The new modules are equipped with Tigo Energy’s TS4 platform solution. Image: ET Solar

Renewable energy equipment provider ET Solar has announced a new slate of modules, tabbed as the “ET Smart Flex.”

ET Solar developed the new modules, which are comprised of Tigo Energy’s TS4 platform, a universal junction box solution.

The modules, which are assembled in Mexico, have been developed to assimilate the applications of a wide swath of Module Level Power Electronic (MLPE) functions, including diodes, monitoring, safety, optimization and longer strings.

Patrick Guo, vice president of ET Solar, said: "Mexico enjoys one of the best solar irradiation levels, its PV market has the potential for steady growth. With our strong affiliations with Tigo Energy, EXEL Solar and other local partners, we are delighted to deliver this innovative PV module to Mexican customers, and to solve problems in a smart and easy way."

Catalogue of woes at PV encapsulant producer STR Holdings

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  PV encapsulant producer STR Holdings is battling continued losses, laclustre sales and second warning from NYSE regarding de-listing. Image: PV Tech

Financials

• STRI
  NYSE
  0.910
  -0.200 (-18.02%)
  4:02PM EDT

PV encapsulant producer STR Holdings is battling continued losses, laclustre sales and second warning from NYSE regarding de-listing. 

According to SEC filings, STR has been threatened with delisting from NYSE, due to its share price trading below the US$1.0 threshold for more than 30 consecutive trading days. 

In January, 2015 the company undertook a reverse stock split to regain compliance. Not surprisingly, STR noted that it did not plan a second reverse stock split, at this time.

Although STR has around six months to address the US$1.0 threshold, it does not have that luxury in relation to meeting an average market capitalisation of US$15 million on a 30 day consecutive trading timeframe, as no ‘cure’ period exists under NYSE rules.

However, PV related stocks have been hit by a number of sell-offs this year, driven by oil prices to China’s slowing economy. 

Not helping has been annual losses of US$211.6 million in 2012, US$18.3 million in 2014 and US$22.7 million in 2014. The company has reported a net loss of US$5.9 million in the first half of 2015. 

Sales had followed a similar pattern even after China-based PV project developer Zhenfa Energy Group acquired a majority stake in the company and pushed sales through its PV module assembly subsidiary in China. 

STR had sales of US$15.3 million in the first six months of 2015, down from US$20 million. Sales have at least improved slightly in the second quarter, reaching US$8.5 million, supported by the highly unusual bartering route of accepting PV modules as payment instead of cash from its customer ReneSola. 

ReneSola accounted for approximately 37% of STR’s net sales in 2014, its largest single customer. However, STR was forced to close its production plant in Malaysia after ReneSola said it was withdrawing from the OEM business model. 

STR said that during the second quarter it had entered into a module-for-encapsulant swap transaction with Zhenfa and ReneSola to settle outstanding payments of around US$7.5 million. 

STR received modules from ReneSola that were then sold to Zhenfa, providing STR with US$2.2 million in cash in the quarter. 

STR finished the second quarter of 2015 with US$10.4 million in cash and no debt.Cash and cash equivalents balance stood at US$16.5 million at the end of 2014, compared to US$58.1 million at the end of 2014, equating to a net decease of US$41.62 million in the year. The Zhenfa acquisition was completed in late 2014. A total of around US$24 million of cash was returned to investors via buying outstanding shares at the beginning of the year. 

Going downstream 

In reported second quarter earnings, STR Holdings confirmed PV Tech’s previous assertions that the company was planning to target the downstream project business in the US as possibly its only chance to return to near-term profitability. 

STR noted that it had engaged the services of a US-based investment bank to assist in finding ways to enter the downstream sector, while advising on potential investments. 

Robert S. Yorgensen, chairman, president and CEO of STR Holdings said, "We believe that the battle for success in the encapsulant business will be won in China, where we are currently focusing our related growth initiatives and working more closely than ever with our majority shareholder to leverage synergies and drive new sales. Pertinent examples include the initial swap agreement with Zhenfa and ReneSola, executed in the second quarter, and the recent appointment of two key Zhenfa executives to positions within STR Holdings."At the same time, we are also seeking to diversify the Company toward more lucrative sectors of the renewable energy industry, where earnings and valuation multiples have been more attractive."

Business development 

STR also noted that it had 14 PV module manufacturers in certification testing of its paperless encapsulant in the second quarter of 2015, while eight companies had completed certification testing, while two potential customers required re-testing. 

According to the company, six new customers (one said to be a leading player) had placed initial unspecified volume encapsulant orders in the quarter. 

However, management also noted that it had delayed supplying Zhenfa's PV module assembly subsidiary, formerly known as Zhangjiagang Huhui Segpv Co, until the end of 2015.

Daqo hit by big fall in polysilicon ASP’s

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  Daqo reported second quarter revenue of US$34.3 million, down from US$41.9 million in the prior quarter. Image: Daqo

Financials

• DQ
  NYSE
  16.01
  +0.58 (3.76%)
  4:02PM EDT

China-based polysilicon producer Daqo New Energy’s financial results were impacted by a sharp decline in polysilicon prices in the second quarter of 2015. 

Daqo reported second quarter revenue of US$34.3 million, down from US$41.9 million in the prior quarter. 

The sales decline was primarily attributed to polysilicon ASP’s declining from US$18.09/kg in the first quarter of 2015, to US$15.95/kg in the second quarter. 

Gongda Yao, CEO of Daqo New Energy, said in an earnings call: “The situation was exacerbated by escalating poly imports from outside of China where we saw an increase of 30% versus the first half of 2014. In particular customer data indicated Korea poly imports increased significantly high by 70% versus the first half of 2014. However, since June we have seen encouraging sign of a strong end market demand with poly prices stabilising.”

The company also noted that it had conducted annual maintenance of its Xinjiang polysilicon facilities, which had affected polysilicon production for five days. As a result, the production volume and sales volume of polysilicon in decreased slightly, compared to Q1 2015.

Polysilicon production volume was therefore 1,734MT in the second quarter, compared to 1,801MT in the prior quarter. Polysilicon sales volume was 1,363MT in, compared to 1,502MT in the first quarter.

The knock-on effect of the lower production due to the annual facility maintenance was that the production cost for polysilicon was said to have increased to US$12.98/kg, compared to US$12.8/kg in the prior quarter. 

Gross profit was around US$$3.6 million, compared to US$8.5 million in the first quarter of 2015.

Daqo also reported wafer sales volume of 18.3 million pieces in the quarter, compared to 18.1 million pieces in the previous quarter. 

With the ‘process in trade’ import exemption expiring at the end of August, Daqo noted that a 4% import tariff in addition to AD and CVD tariff in the range of 2.4% to 57% would be implemented, creating total import tariffs in the order of 6.4% to 61%. 

Daqo expects the import duties to improve the supply and demand situation for polysilicon within China, with polysilicon ASP’s possibly rising again in the fourth quarter of 2015 or in the first quarter of 2016. 

Management noted in the earnings call that it did not expect polysilicon ASPs to make further declines as was trading for many companies at production cost levels. 

The company recently announced plans to expand polysilicon production to reach around 18,000MT annually by the beginning of 2017, providing further scale to reduce polysilicon costs. 

meteocontrol to offer remote control systems for first phase of 900MW PV plant in Pakistan

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  meteocontrol will also provide data acquisition devices, sensor and portal software, as well as configuration, commissioning and training services. Image: Shunfeng International

meteocontrol China, a subsidiary of Shunfeng International Clean Energy, is set to offer integrated remote control systems to PV development and investment company Zonergy’s 100MW phase-one set for a power station in Punjab Province, Pakistan.

Once completed, the installation is estimated to stand as the largest single PV power project at 900MW. As part of the agreement between the two parties, meteocontrol will offer data acquisition devices, sensor and portal software, along with related configuration, commissioning and training services.

meteocontrol will also provide specialized monitoring — in addition to operation and maintenance solutions — for Zonergy’s total development plan for its PV power plant business segment.

Jacky Jia, vice president of Zonergy, said: “Zonergy and meteocontrol have reached a consensus that we will jointly seize the market opportunities brought by China's "One Belt, One Road" strategy, through leveraging meteocontrol's extensive expertise in PV power station operation and maintenance management, so as to ensure the quality of our power station, provide greater efficiency, reduce generation costs, and create more value for the customers.”

Wircon starts work on Scandinavia’s largest solar plant

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  Expected annual electricity production is about 61,000 MWh, which is enough to supply electricity to around 90,000 households. Image: Eon.

German-based PV developer Wircon has begun preparing a 60MW solar plant near Copenhagen, Denmark, the biggest PV plant in Scandinavia.

The firm began preparatory work three weeks ago and is holding a ground-breaking ceremony on 11 August.

Expected annual electricity production is about 61,000 MWh, which is enough to supply electricity to around 90,000 households.

It consists of 239,000 solar modules from Astroenergy, which belongs to China Chint Group. It also includes 1,700 inverters from leading manufacturer SMA Solar Technology.

The solar park is due to be completed by the end of November 2015 and connected to the grid this year.

Peter Vest, chief executive of Wircon, said: "The site is suitable because of its high radiation and the constant winds for cooling modules.”

Pattern Energy enters solar market by constructing 122MW Chile project

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  Conejo Solar has a 22-year power purchase agreement (PPA) with Minera Los Pelambres, an affiliate of Antofagasta Minerals, for roughly 65% of the project's output. Source: Flickr/Nicolas De Camaret.

Renewable energy developer Pattern Energy Group has started construction on its 122MW Conejo Solar PV project in Chile and completed around US$205 million of project financing.

The project is located around 30 kilometres east of Taltal in the Atacama Desert on public lands owned by the government of Chile, under a long-term concession. Construction is expected to be completed in the summer of 2016.

Conejo Solar has a 22-year power purchase agreement (PPA) with Minera Los Pelambres, an affiliate of Antofagasta Minerals, for roughly 65% of the project's output. The project will connect to the Sistema Interconectado Central (SIC) grid system.

Mike Garland, president and chief executive of Pattern Development, said the company was expanding into the solar market with one of the largest solar projects in Latin America.

“Solar power is an excellent fit with our wind business that allows us to leverage our extensive development expertise. In addition to our El Arrayán wind facility, the largest in Chile, we now have a strong platform and an exciting pipeline of projects for future growth in the country.

“When combined with our recent Japanese solar project additions, we are making a significant step to diversify into solar on a global basis."

China Sunergy signs off on EPC deal to develop 14.5MW PV plant in Philippines

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  The site is slated to become operational by the first quarter of 2016. Image: China Sunergy

Solar cell and module manufacturer China Sunergy has announced that its subsidiary, engineering, procurement, and construction (EPC) service provider CSUN-Solar International Limited, has signed off on an EPC deal with green power developer YH Green Energy Incorporated to construct a 14.5MW PV installation in the Philippines. 

The development of the project is slated to begin in the third quarter of 2015, and is expected to completed and operational by the first quarter of 2016.

Tingxiu Lu, chairman and CEO of CSUN, said: “We are delighted to cooperate with YH Green Energy on the construction of the solar power project. We believe that this transaction demonstrates our solar project experience, expansion in the south-east Asia market as well as our capability of providing solar energy solutions on a global basis, which positions us well in the steady growth of green energy industry in the years to come."

Foresight says UK ‘remains an attractive market’, pursues 300MW pipeline

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  The Kencot project, part of Foresight's solar portfolio. Source: Foresight.

London-based asset management group Foresight Solar Fund has said the UK “remains an attractive market” despite recent policy changes and confirmed it will pursue a 300MW pipeline in the second half of this year.

On Wednesday Foresight revealed that its existing portfolio of 263MW performed 7.4% above expectations during the six-month period ended 30 June, resulting in total generation of 131GWh and H1 revenues of £14.9 million (US$23.3 million).

Profit for the period reached £5.38 million (US$8.40 million), however the company did note that it expects the recent removal of the climate change levy (CCL) exemption for renewable energies to reduce its Net Asset Value – £277.9 million (US$433.9 million) as of 30 June – by 3%.

Chancellor George Osborne’s decision to remove the CCL exemption, coupled with more recent proposals to scrap or reduce other subsidy support for solar PV, has lead to increasing concern over investor confidence in the UK but Alexander Ohlsson, chairman at Foresight Solar Fund, believes the market is still an attractive one.

The company has outlined a pipeline of assets with a total generation capacity of 300MW that it is to pursue over the next six months of the year, having last week extended its acquisition by an additional £30 million (US$46.8 million).

Ohlsson confirmed that Foresight’s immediate pipeline of assets were all either connected before support for projects over 5MW under the renewable obligation expired on 1 April 2015 or qualify for the grace period at a slightly reduceded support level.

“Despite the changes the Board and Investment Manager believe that a combination of the investments made to date and the strong pipeline of potential opportunities currently being considered will continue to provide attractive returns together with the associated benefits of scale to shareholders over the longer term,” Ohlsson said.

Reacting to the results Finlay Colville, head of intelligence at Solar Intelligence, said Foresight remains one of the leading challengers to current market leaders Lightsource and Octopus and estimated that the company could be less selective in the marketplace in the coming months.

“Until now, Foresight has been somewhat selective in its portfolio additions, with approximately 56% coming from four well-defined developer/EPC acquisition routes. With the range of developers and SPV-owning EPCs set to increase between now and 31 March 2016 across the 450 plus sites that are targeting 1.3ROC accreditation, the percentage coming from these four routes may in fact decline, with a greater number of options available to Foresight to further increase its portfolio before April 2016,” he said.

EDF Renewable Energy closes acquisition deal with Dominion

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  Power generated by the plant will be sold to utility Southern California Edison through a 20-year PPA. Image: EDF Renewable Energy

US independent power producer EDF Renewable Energy (EDF RE) has closed the sale on the 24.3MW Catalina Solar 2 Project — located in Kern County, California — to Dominion.

The purchase and sale deal, announced in September 2014, was closed on 30 June 2015 when the installation of the project was completed.

EDF RE managed the installation throughout the commissioning phase to put the site in service on 22 July 2015. Electricity generated by the plant will be offered to utility Southern California Edison through a 20-year PPA.

REC Solar almost sold-out for 2015

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  REC Solar, part of Chinese investment firm Elkem Bluestar provided bullish business figures for the second quarter of 2015. Image: REC Solar
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  REC Solar said PV module sales reached US$168 million, up 12% from the prior quarter, driven by 130MW of module shipments to the US in the quarter. Image: REC Solar

Singapore-based tier-1 PV manufacturer REC Solar, part of Chinese investment firm Elkem Bluestar provided bullish business figures for the second quarter of 2015. 

REC Solar said PV module sales reached US$168 million, up 12% from the prior quarter, driven by 130MW of module shipments to the US in the quarter, which accounted for 50% of total sales. REC Solar is a key supplier to SolarCity, which posted 189MW of installations in the quarter, up from 153MW in the first quarter of 2015. 

However, other US customers across residential, commercial and utility-scale segments also contributed to the sales increase in the country which was up 44% from the previous quarter. 

Talking to PV Tech, Luc Graré senior vice president, sales and marketing, EMEA and South America said, “We are almost fully-booked for Q3 and Q4 [2015] and much more demand than we can manufacturer, especially for our 72-cell modules primarily for the US market. 

The company stated that it had secured 818MW of module shipments into the US in 2015 and 2016 and reiterated it would complete its capacity expansion to 1.3GW by the end of the year. 

REC Solar remains bullish on the US market post ITC reductions at the end of 2016, noting that both residential and commercial segments were anticipated to grow further. 

“There may be some dip in demand in the US post ITC but our thinking is this will not be big. The emergence of new forms of low cost capital after the ITC reduction and continued cost reductions should support further growth,” added Graré, and reinforcing SolarCity’s management view of the US residential market after the ITC reduction. 

REC management said in a statement that it expected annual global module installations to reach around 58GW in 2015, an increase of 30% compared to 2014.

The company also noted that weaker demand expected in Europe over the next few years, previously its key end-market had enabled the company, despite being capacity constrained to broaden its global market footprint. 

REC Solar said that it was expanding its sales efforts across South East Asia and planning a longer-term approach the key emerging markets in Africa, such as Ghana, South Africa and Kenya, while Japan remained an important secondary market. 

The company said that it had secured 35MW of module supply deals in Thailand and accounted for 78% of REC’s total sales in APAC in the second quarter of 2015.

Graré told PV Tech that the company was still in site selection mode for its next capacity expansion, though expected the company to add around 400MW of new capacity when the location and timing of the expansion is decided. 

The key market demand driver is expected to remain in the US for the eventual capacity expansion. 

ET Solar releases AC PV module with integrated ultra-thin microinverter

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  The AC modules are using NEP’s BDM-300 microinverters, which is said to be only 25mm in thickness, enabling it to fit flush in the top right-hand corner of the backside of the module.

PV manufacturer ET Solar is launching a new multicrystalline AC module with a new ultra-thin integrated microinverter from Northern Electric and Power (NEP). 

ET Solar said it was showcasing the new module at PV Japan 2015.

The AC modules are using NEP’s BDM-300 microinverters, which is said to be only 25mm in thickness, enabling it to fit flush in the top right-hand corner of the backside of the module. 

Patrick Guo, Vice President of ET Solar said, "With NEP's cutting-edge technologies and industry-leading solar inverters, our new generation AC modules will play a very meaningful role in the Japanese PV market."

Mr. Nakamura, CEO of NEP Japan added, "Japan's residential market is huge and still growing. Micro inverters do not have uninterrupted high DC voltage, while other inverters have uninterrupted high DC voltage on roofs all the time. Safety is always our first concern. NEP's micro inverter has been certified and can be sold throughout Japan.”

The Japanese residential market remains attractive due to its high FiT, however leading Japanese PV manufacturers have been struggling to retain market share in the last 12-months due to increased foreign competition and grid connection restrictions for large-scale ‘mega solar’ projects in certain regions of the country.