• 3 minutes Electric cars may make driving too expensive for middle classes, warns Vauxhall chief
  • 6 minutes Natural gas mobility for heavy duty trucks
  • 12 minutes Colonial pipeline hack
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Texas Power Outage Danger Until June 18th. Texans told to conserve energy!
  • 46 mins Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 4 hours Federal Judge Says Biden Probably Wrong for Halting Drilling on Federal Land
  • 3 days And now, hybrid electric locomotives...
G7 Shies Away From EV Sales Targets

G7 Shies Away From EV Sales Targets

The G7 nations failed to…

China's Solar Industry Begs Producers To Please Not Hoard Raw Materials

The China Photovoltaic Industry Association (CPIA) is calling on local solar power developers not to exacerbate the surging costs of raw materials by stockpiling polysilicon and other materials for manufacturing solar components.

Companies in the solar power industry, not only in China but all around the world, have been flagging soaring costs for raw materials since the start of this year. The rise in costs, after years of decline, threatens to delay solar installations worldwide.

“At present, some photovoltaic companies have drastically reduced operating rates, cut production or even suspended production,” CPIA said on Thursday, as carried by Reuters.

Some companies have reduced or suspended production, and some orders are not being met because of the surging costs and imbalances in the supply chain, the association added. 

The Chinese industry body recommended that companies refrain from “excessive stockpiling” of polysilicon and silicon wafer products to ease the strain on the solar power supply chain. 

The price of solar modules has jumped by 18 percent since the beginning of the year, BloombergNEF said last month. Polysilicon prices have surged to their highest in nearly a decade, according to data from PVInsights cited by Bloomberg.

“The disruption to solar hasn’t been this bad in more than a decade,” Jenny Chase, lead solar analyst at BloombergNEF, says, adding that solar power developers and governments should stop expecting solar projects to get much cheaper quickly.

New utility PV projects are becoming more expensive due to increasing costs for modules, shipping, and labor, Rystad Energy said in a report in April.

“Rising commodity prices and shipping costs are eroding utility PV project margins, potentially leading to delays for developments nearing financial close. Modules account for the largest single capex item of utility PV projects, which means even modest changes in costs can lead to significant challenges for project economics,” according to Rystad Energy.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News