systems

Barclays downgraded shares of Nextera Energy from “equal weight” to “underweight”.

NextEra Energy Partners LP (NYSE:NEP) Shares fell 3.6% in premarket trading after Barclay downgraded the solar energy provider to “underweight” from “equal weight” and cut its price target to $25 from $32. The coverage analyst noted that NextEra’s convertible equity portfolio financing has caused it to hit a bottom.

Shares of NextEra Energy, heading for a third loss, could extend its 50.2% loss from the previous year. Shares will open at their lowest point since early May and fall below recent support from the 50-day moving average.

Options traders are in luck because equity is currently being rewarded at favorable prices. The stock’s Schaeffer Volatility Index (SVI) is in the 14th percentile of its annual range of 36%, indicating that options players are pricing in low volatility expectations for NEP. Moreover, his Schaeffer’s Volatility Scorecard (SVS) NextEra Energy stands at 87 out of 100, indicating that shares have beaten options traders’ volatility expectations over the past 12 months.

Solar panel makers in China are seeking government intervention to stop “overinvestment” in the industry as falling prices for solar cells and modules hurt their profits.

Billions of dollars worth of government subsidies and incentives helped China dominates the global solar industry. The country currently accounts for 80% of global module capacity.

But this advantage has come at a price—industry overcapacity has fueled a steep decline in solar cell and module prices, with no end in sight.

Also in AF: Chinese carmakers face new EU tariffs of up to 25%

Last year, the prices of finished solar panels in China fell by 42%.

This not only threatened the profit margins of the big Chinese solar panel makers, but also forced smaller players to close shop.

“We must join forces to prevent overinvestment,” said Gao Jifan, chairman and CEO of Trina Solar and honorary president of CPIA.

Graphic: Reuters

Gao’s comments came as the country’s solar panel manufacturers gathered on Tuesday at the International Solar Photovoltaic and Smart Energy conference to call for industry cooperation.

While Gao wanted government regulation of new investment in the sector to offset further losses, Duan Yuhe, president of SiNeng Electric, asked China’s state planner to intervene.

“The goal is to survive”

Analysts expect Chinese manufacturers to add 600 gigawatts (GW) this year, enough to meet global demand through 2032.

A skilful leap expressed it even China’s own power grid does not have sufficient storage or transmission capacity to absorb excess energy from rooftop solar panels when the sun shines.

This has led Beijing to impose restrictions on feeding excess power from rooftop solar to the grid and cut some of the price supports that have fueled the rapid growth of distributed solar.

Graphic: Reuters

The choice manufacturers are left with is to export more and more solar panels to global markets competing to meet climate goals.

But Chinese solar panel makers are running into roadblocks there, too. Markets such as India and the US have imposed restrictions on imports, not just from China but also the countries of Southeast Asia Chinese manufacturers such as Vietnam, Malaysia and Cambodia have reportedly shipped solar panels.

Europe, a key market for China, is also sounding the alarm about Chinese solar panel imports to counter the threat to domestic manufacturers.

These problems, coupled with intense competition at home, threaten to drive small industry players into bankruptcy.

“Survival is the goal,” Li Gang, chairman of Seraphim Energy Group, said at a conference call on Tuesday.

“Consolidation has already begun”

According to the China Photovoltaic Industry Association (CPIA), from June 2023 to February 2024, at least eight companies canceled or suspended more than 59 GW of new generation capacity, which is the largest share of China’s finished panel production capacity in 2023. It is equal to 6.9%.

And it wasn’t just the smaller players who suffered from the industry’s deteriorating fortunes. In March, China’s Longi Green Energy Technology, one of the world’s largest solar panel manufacturers, announced will lay off about 5% of its employees.

A month later, the company’s vice president, Dennis She he said A Reuters consolidation would be “good for the leading players” in the country.

Graphic: Reuters

At a conference on Tuesday, Asian Photovoltaic Industry Association chairman Gongshan Zhu warned new companies against rushing into the sector.

He noted that industrial profits fell by 70% due to overcapacity and falling prices, while exports were limited by trade barriers imposed by the United States.

“If you’re just a copycat, it won’t be sustainable for you,” Zhu said, adding that the situation is exacerbated by local governments investing to boost employment.

Industry leaders speaking at the conference also called for an end to price competition. They suggested that tender processes should consider research and development levels, not just price.

Some company officials, such as Fei Wu, chairman of Wuxi Suntech Power, said consolidation has already begun. He added that the outlook for the industry is likely to deteriorate this year, with more small companies going out of business.

Reuters, with additional information from Vishakha Saxena

Also read:

China’s Clean Energy Spending to Align with US-Europe in 2024

Chinese Solar Panel Costs to Fall 60% from US in 2023

China is launching the world’s largest solar farm in Xinjiang

China’s Solar Sector Has Been Faced With Oversupply, Low Prices For Years

The US and the EU cannot meet their Climate Goals without China’s Cheap Green Technology

EU cannot close borders with Chinese solar power, says energy chief

China’s Cheap Solar Panels Are Killing European Solar Manufacturers

China’s Wind, Solar Power Capacity Surpasses Coal for First Time

Chinese Solar Firms Pay Price of Global Advantage – FT

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. He has been working as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, he is very interested in the new economy, emerging markets and the intersection of finance and society. You can write to his address [email protected]

$3.42 +0.10 (+3.01%)

(as of 06/10/2024 ET)

52-Week Range $1.76

▼

$12.18

Price Target$4.56

SunPower Co. NASDAQ: SPWR offers solar products including high efficiency solar panels and complete solar systems to businesses and homeowners. SunPower manufactures its own photovoltaic (PV) solar panels, Maxeon solar cells with interdigitated back contact (IBC) technology, which are more efficient than optimized passivated emitter and back contact (PERC) panels. Maxeon panels absorb more sunlight because the entire front absorbs sunlight, which converts more photons into energy. SunPower claims to be the #1 solar company in the US.

SunPower shares have been steadily rising along with their peers in the oil/energy sector. It competes with other sellers like it First Solar Inc. NASDAQ: FSLR, Sunrun Inc. (NASDAQ: RUN), and Canadian Solar Inc. NASDAQ: CSIQ.

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Catalyst for Solar Adoption with SunPower

Solar energy stocks rise strongly in 2024. SunPower offers thousands of reasons to choose solar energy, from annual savings to lower electricity bills to receiving the solar federal tax credit and federal storage tax credit. The global decarbonization effort aims to slow the rate of global warming by 2030.

Global Renewables and the Promise of Energy Efficiency

At COP28 in 2023, 118 countries committed to triple global renewable energy capacity to 11 TW by 2030. However, China, India, South Africa and Egypt did not sign the pledge. The goal is to limit global warming to 1.5 degrees Celsius and keep it below 2 degrees.

SPWR Tries to Trigger an Ascending Triangle Wrinkle

The daily candlestick chart on SPWR shows an ascending triangle pattern that has failed in 2 breakout attempts as the stock continues to pull back into the triangle range. An ascending trendline was formed at $1.77 on April 23, 2024, with higher lows on pullbacks against flat upper trendline resistance at $3.75. SPWR is nearing a tipping point, where a breakout will inevitably occur below an upper trendline or a rising lower trendline. The daily relative strength index (RSI) is cutting around the 56-band. Pullback support levels are at $3.10, $2.62, $2.16 and $1.77.

SunPower Delays Filing of 2023 Form 10-K and Q1 2024 Form 10-Q

The company previously disclosed that management’s company disclosure controls and procedures, as well as internal controls, were not effective for the four quarters of 2023, specifically January 1, April 2, July 2 and October 1. The company’s remediation plan for the material weakness in SunPower’s internal control over financial reporting will be further described in its Form 10-K for the period ending December 23, 2023. This will cause a delay in the filing of its Q1 2024 Form 10-Q report. SunPower plans to restate the Affected Prior Period Financial Statements and file its 2023 Form 10-K and Q1 2024 Form 10-Q as soon as possible.

New Tariffs May Be Coming to Asian Solar Panels

The US International Trade Commission (USITC) has voted to continue its anti-dumping and countervailing duty investigations into certain solar energy imports from Malaysia, Thailand, Vietnam and Cambodia. The ITC is reviewing applications from manufacturers who allege that imports are being sold below cost to unfairly benefit from billions of dollars in subsidies. Many of these subsidies are offered directly by Chinese government agencies. The ITC’s initial determination was that there was a reasonable showing of pecuniary injury to US producers.

The vote allows the US Commerce Department to continue investigating whether international manufacturers are dumping solar products and receiving illegal government subsidies. This may lead to the collection of initial fees starting in July 2024.

SunPower Now Offers The Tesla Powerwall 3 To Its Product Portfolio

On May 22, 2024, SunPower announced that it would offer Tesla Inc. NASDAQ: TSLA As part of the Powerwall 3 battery storage solution product portfolio. The Powerwall 3 has 11.5 KW of power and 13.5 kWh of energy to power the entire home and efficiently capture solar energy. Combining a SunPower Equinox solar system and a Tesla Powerwall 3 makes sense for homeowners. SunPower also expanded its financing. The company expects that 25% of American homeowners who install rooftop solar panels will also add a battery storage system.

SunPower analyst ratings and price targets at MarketBeat.

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Aptech Africa Ltd has made significant progress in bridging the energy gap by installing a ground-breaking PV minigrid with a distribution line in Mandelia, Chad. This project aims to combat severe energy poverty faced by many remote and underserved communities in Sub-Saharan Africa, where access to reliable and clean electricity is limited.

Chad, like many of its regional counterparts, has struggled to provide universal electricity access, often relying on expensive and environmentally damaging diesel generators. This energy shortage hinders economic opportunities and essential services such as health, education and communication.

In response to this pressing need, Aptech Africa deployed a 78kW solar PV minigrid system with 324kWh battery storage using Ulica solar modules, Alpha ESS inverters and Lithium-ion batteries. The system includes a remote monitoring function through the Alpha ESS system, which provides real-time information and efficient management.

One of the notable features of the minigrid is its distribution line, which extends the reach of electricity to communities far from the main grid. The facility is expected to benefit more than 100 people, including local schools and medical facilities, serving as a model for similar projects in Chad and other potentially energy-challenged regions.

The PV minigrid not only reduces carbon emissions by harnessing Chad’s abundant sunlight, but also provides a sustainable and scalable alternative to traditional fossil fuel-based systems. By highlighting the economic, social and environmental benefits of solar minigrids, Aptech Africa’s project inspires confidence and encourages further investment in renewable energy solutions.

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The tractor seat is a good place to think things through.

Baling hay with a recent day shift gave me plenty of time to think, and my mind settled on two difficult topics that seemed appropriate under the hot afternoon sun.

Reading about a new solar ‘farm’ planned for a rural area now seems commonplace. Proponents of such projects sell them to the public using feel-good terms like “renewable,” “green,” and “clean energy.”

In my opinion, this is all a farce, and there is nothing pure about large-scale solar farms when the projects consume actual farmland.

And solar energy projects are another example of how this country takes for granted the land used to grow the food that feeds us. Shouldn’t this fact alone be enough to limit the use of farmland as solar energy?

Food production is not a strong enough reason to prevent farmland from being covered with thousands of black panels.

In New York, officials estimate that 452,000 acres of agricultural land will be used for solar energy and residential use.

One solar project in central Pennsylvania consumed 1,755 acres of farmland, and more are planned for rural areas throughout the state.

One of the main drivers for solar projects is “carbon neutrality,” which means reducing emissions in efforts to combat climate change.

In fact, the earth’s climate is always changing, and solar panels on once-green farmland aren’t going to stop it.

In fact, it’s ironic that we consume farmland with solar panels to reduce the carbon sequestered by the crops actually growing there.

According to a report by the USDA Economic Research Service, three of the five primary means of carbon sequestration involve agriculture—land that becomes grassland, grassland that remains, and cropland that remains cropland.

In fact, the report found, the reduction in cropland from wind or solar projects could reduce or even eliminate emissions reductions.

Basically, when it comes to carbon sequestration and emissions reduction, cropland planted in crops or pastures has been quite efficient in accomplishing this task.

But this is what worries me about the whole solar vs. ag land debate: If carbon emissions are causing climate change, and climate change is a threat to humanity, why are so-called solutions like solar panels funded by incentives and taxes? loans by the government?

If solar is going to save the world, why do we need financial incentives to encourage people to cover the landscape with panels?

Still, there’s another caveat to consider with the current rush of paint over farmland with solar panels.

For some farmers, solar energy leases represent a greater economic return than the cost of the product produced.

And that’s what needs to be fixed.

If farmers were paid a fair, consistent price to produce the food we all need to live, perhaps solar leasing would be less likely to drive this valuable land out of production.

The land that grows our food is of immeasurable value and should not be wasted like the sun.

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