Polysilicon used to be Big in the Supply Constrained Days of 2007 and 2008.This commodity which is generally producers for $30/kg used to be sold at $400/kg by Polysilicon Producers as the Exponential Demand Growth in the Crystalline Silicon Solar Cell Industry pushed the prices to astronomical levels.With Polysilicon being the only constraining link in the Supply Chain,Downstream Solar Companies with access to Cheap Polysilicon Contracts used to be the Kings of the Industry.Polysilicon Producers like MEMC,Wacker etc. managed to sign many sweetheart deals on those days with 10-15% prepayments and other favorable conditions loaded in the favor of the upstream suppliers.

Don’t know how these projects will further the cause of Solar Energy in China as they don’t help in formulating realistic Feed in Tariff Rates for the Government’s New Energy Administration (NEA).China has long been delaying the introduction of a Feed in Tariff (FIT) for Solar Energy.Note many major countries in the world except for China and the USA have Feed in Tariff Programs to promote Solar Energy.In fact 75% of the world’s solar energy installations are dependent on the FIT subsidies.

.Most of the State Electricity Distributors are in poor financial shape and have been known to frequently default on their financial obligations.With almost 70-75% of the estimated $2.2 Billion in the first phase of the PV projects to be financed by debt,this represents a big hurdle for the success of Solar Energy.The government needs to come out with some sort of arrangement of guarantees for the smooth functioning of the Solar Mission and instill confidence amongst investors and Banks.

China is making massive investments into Africa exploiting the virgin natural resources of the Dark Continent for its voracious industries at home.Unlike the Developed Nations,the Chinese government has no qualms about the country’s rulers or human rights violations.Not surprisingly as it has been accused by activists of violating labor and environment rights in areas where it has invested.Most of the African countries have despotic and corrupt regimes looking to sell the continents rich resources to anyone willing to pay them.They have found a compliant partner in China which gives them a red carpet treatment.Mozambique is the latest country to sign a MOU which would lead to Chinese largesse.

Czech Republic came out with a Renewable Energy Framework which will finish off the Solar Sector in the country if passed in the current form.Czech despite its small size has become the 3rd largest market for Solar Energy in Europe driven by high Feed in Tariffs.These guaranteed electricity rates have led to¬† a Boom in […]

Countries around the world have always managed to shoot themselves on the foot while designing and implementing Feed in Tariff Schemes.Spain did it in 2008 resulting in a Boom and Bust Cycle,Czech is going through the Boom Phase currently while UK seems to be in the starting stage of the Boom.A Bust inevitably follows the Boom,as Bureaucrats never manage to prepare a good incentive scheme to promote Green Energy.It always surprises me how a developed nation government regularly manages to botch up these schemes.