China Mulls Raising Solar Target to 25GW (TAN) (LDK)
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China is considering raising their 2015 solar target to 25GW. Originally set at 5GW, China previously discussed raising the target to 15 GW, and more recently to 21GW.
According to an industry note by Jefferies on Friday, the increased target could boost installation to up to 10GW in 2012. Their current forecast is for 4GW of installation.
China's solar industry is funded in part by government stimulus. The increased solar target is meant to soak up excess supply.
"Capacity rationalization still in an early stage. We believe PV industry consolidation is going to through an initial attrition phase," commented analyst Jesse Pichel, who recently traveled to China for a solar summit.
"We came away with more confidence about solar demand in China, but believe true capacity rationalization still has a long way to go."
Guggenheim Solar ETF (NYSE: TAN) is lower by nearly 13 percent in the past month, although still significantly higher for the year. LDK Solar Co., Ltd. (NYSE: LDK) finished last week lower by 5.7 percent. Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) and Jaso Solar (Nasdaq: JASO) were also lower for the week.
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According to an industry note by Jefferies on Friday, the increased target could boost installation to up to 10GW in 2012. Their current forecast is for 4GW of installation.
China's solar industry is funded in part by government stimulus. The increased solar target is meant to soak up excess supply.
"Capacity rationalization still in an early stage. We believe PV industry consolidation is going to through an initial attrition phase," commented analyst Jesse Pichel, who recently traveled to China for a solar summit.
"We came away with more confidence about solar demand in China, but believe true capacity rationalization still has a long way to go."
Guggenheim Solar ETF (NYSE: TAN) is lower by nearly 13 percent in the past month, although still significantly higher for the year. LDK Solar Co., Ltd. (NYSE: LDK) finished last week lower by 5.7 percent. Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) and Jaso Solar (Nasdaq: JASO) were also lower for the week.
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Jefferies & Co, Jesse Pichel
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