The recent joint announcement by China's National Development and Reform Commission (NDRC), National Energy Agency (NEA) and Ministry of Finance (MOF) that development of new solar installations will be contained this year has shaken the global PV market, as significantly lower volumes of solar are expected to be deployed in the country.
It is already evident the sharp decline in demand in China will affect PV markets around the world. According to analysts at U.S. investment bank Roth Capital, an oversupply of more than 30 GW of photovoltaic modules – with a corresponding negative impact on PV companies this year and next – will be the result.
The government announcement also left its mark on international stock markets with Roth downgrading its rating for several shares, including Jinko Solar, JA Solar, Renesola, Amtech Systems and Daqo New Energy. The analysts believe companies across the entire PV value chain will be affected by China's change of course.
As a consequence, U.S. and European share prices also saw declines. Reuters reports the shares of German suppliers Wacker Chemie and SMA Solar have fallen and REC's shares also suffered on the Oslo Stock Exchange. The stock of Chinese solar companies such as Longi, Tongwei and Zhejiang Chint had already seen a drop on the Shanghai exchange.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.