INDUSTRYNEWS
USA company applauds pentagon order
THE $725 billion Defense Authorization Act for fiscal year 2011, signed into law by President Obama contains a provision designed to promote the self-reliance of the USA. The provision requires the Department of Defense to comply with the Buy American Act in purchasing PV solar power technology and reduce its dependence on energy technology and fuels from overseas.
SolarWorld champions the energy and economic self-sufficiency from domestic production of solar technologies requiring no fuels or emissions. The company’s corporate vision statement asserts that by promoting independence from fossil fuels solar energy “makes a contribution to avoiding military conflicts.”
Some U.S. competitors have cited production in overseas markets that feature lax labour and environmental laws but also low transparency. The Buy American Act limits defence purchases to products substantially manufactured in the United States or in countries with special U.S. trading partnerships. The act, for example, could bar Department of Defence purchases of products substantially made in China.
Pentagon orders a USA only policy
“Just as solar electricity allows power users to tap sunshine exactly where they need electricity, domestic production enables nations to rely on their own manufacturing technology to generate renewable power,” said Bob Beisner, managing director of SolarWorld Industries America Inc., based in Hillsboro. “This new provision promotes technology production in the United States and its special trading partner nations using operations that offer manufacturing jobs and expertise to their citizens.”
SolarWorld has supplied solar panels for a number of projects on U.S. military bases. The company is providing 2.5 megawatts-peak worth of panels for installations at historic properties in Pearl Harbour, Hawaii, for example, and it supplied 1.2 MW for a 2009 project.
Trina assures material needs
TRINA SOLAR LIMITED announced through its subsidiary, Changzhou Trina Solar Energy, that it has signed a supplemental long-term wafer and polysilicon product supply agreement with GCL (Changzhou) Solar Energy Technology Company Limited, a subsidiary of GCL-Poly Energy Holdings Limited.
Under the terms of the supplemental agreement and existing agreements, GCL-Poly is expected to supply Trina Solar with wafers and polysilicon sufficient to produce approximately 7,500 MW of solar modules in aggregate over five years. Delivery of the wafers and polysilicon at predetermined prices will commence from January 2011 to December 2015. Terms of the agreement also contain a price adjustment clause.
“We are very pleased to further strengthen our long term strategic partnership with GCL-Poly by signing this supplemental agreement,” said Patrick Lu, Trina Solar’s Vice President of Supply Chain Management. “The agreement to secure a portion of the Company’s wafer and polysilicon requirement from GCL- Poly continues to extend our advantage to support our long-term sales growth and market share expansion goals into 2011 and beyond.”
IN a move that is sure to increase tensions between China and the USA, the financial press is reporting that the Pentagon has issued a ‘buy American’ policy when it comes to the purchase of solar energy panels for the military. Congress slipped in the language to military appropriations bills passed last month. Although the USA media see it as a way to cut China out of the USA market the impact of such legislation affects all non USA manufacturers.
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Some of the rationale to the move seems to stem from members of Congress complaining that the government of China unfairly subsidises the country’s solar industry, making it difficult for American companies to compete. As the industry relies on subsidies for current growth this does not stack up in the global context.
Congress comments suggest that the language of the order is so carefully worded that it should avoid any conflict with the World Trade organisation.
This may change as the assumption in the USA is this is only an issue for China and the issues between the two countries. As other countries realised they have effectively been locked out of a potentially large segment of the market, the USA may find a number of countries lining up and protesting against such a decision.
With the USA complaining that China is not allowing a level playing field this seems a strange way to deal with the issue.
www.solar-pv-management.com Issue I 2011
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