18 Sep '13, 2pm

China Limits Solar Manufacturing, May Drive Consolidation

BEIJING -- China, the world’s biggest maker of solar panels, will limit construction of new photovoltaic manufacturing plants to curb excess capacity, a move that may spur consolidation within the industry. New solar plants that “purely” expand capacity will be strictly banned, the Ministry of Industry and Information Technology said in a statement on its website yesterday. Annual spending by companies for research and development and upgrading equipment must total at least 3 percent of revenue and must exceed 10 million yuan ($1.6 million). Chinese authorities have pledged to cut overcapacity in industries from steel to paper as policy makers seek to reduce the economy’s reliance on investments and exports. A global oversupply of solar panels led to a 20 percent plunge in prices last year, according to data compiled by Bloomberg. The policy will slow efforts to expand pro...

Full article: http://www.renewableenergyworld.com/rea/news/article/2013...

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