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Solar ♦ news digest


in the industry position solar at the threshold of the mainstream energy markets, and we are well- positioned to capitalize on that opportunity.”


Hughes has nearly 20 years of experience in the global energy industry. Before joining First Solar, he served as the CEO of AEI, which owned and operated power distribution, conventional and renewable power generation, natural gas transportation and natural gas distribution businesses in 19 countries. Prior to that, he was President and Chief Operating Officer for Prisma Energy.


Hughes earned a juris doctor from the University of Texas at Austin School of Law, a Certificate of Completion in international business law from Queen Mary’s College, University of London, and a bachelor’s degree in business administration from Southern Methodist University.


Is the Chinese government monopolising the solar market illegally


Yes, according to U.S. firm Wiley Rein LLP. A new Five-Year Plan for solar is calling for escalation in Chinese government sponsorship of export- intensive, price-subsidised trade central planning Wiley Rein LLP says an array of illegal subsidies have enabled China’s state-sponsored solar industry to seize more than half of U.S. and world market share at the expense of U.S. companies and jobs. Now the government of China has issued a new “Five-Year Plan” for the solar industry. It provides for even greater government control and support of the solar industry, according to an analysis commissioned by the Coalition for American Solar Manufacturing (CASM).


The plan to fuel China’s export-intensive solar- industry campaign calls for a number of government initiatives, including new policy, financial and price subsidies. These moves are intended to offer more support in industry, financial and tax policy and further aid the development and production of equipment used to produce polysilicon, silicon ingots, wafers, cells and panels within the crystalline-silicon solar industry.


What’s more, the portfolio includes plans to support industrialisation of China’s as yet undeveloped thin-film industry, specifically harnessing silicon and CIGS solar technologies. The analysis was conducted by Wiley Rein LLP in Washington, D.C.


It focused on China’s 12th Five-Year Plan for the Solar Photovoltaic Industry, issued in February 2012 to expand on China’s broader 12th Five-Year Plan for National Economic and Social Development. Wiley Rein is representing CASM, a coalition of more than 190 employers representing over 16,000 Americans, in advancing trade cases against the Chinese solar manufacturing industry. In a partial preliminary determination in March, the Department of Commerce announced that at least ten categories of Chinese subsidies for its producers of solar cells and panels were illegal. “These plans significantly increase the government’s control over the development of the solar industry, permitting the government to manage virtually every aspect of the industry,” the analysis says. “Substantial government assistance is also mandated to carry out the goals identified in these plans.” As in previous iterations, the plans designate solar among seven “strategic emerging industries” that warrant massive government support, preferential treatment and tight control, according to the analysis. News reports put total subsidies for all seven industries at $1.5 trillion.


The recently published solar plan, which covers the period up to 2016 reflects the Chinese government’s resolve to ensure the industry’s continued rapid development by directly managing its planning, policy and growth. In addition, according to the analysis, the solar Five-Year Plan calls for the Chinese industry’s continued global expansion and “internationalisation” in keeping with China’s “Going Abroad” strategy. China has amassed production capacity that is 32 times greater than domestic demand, resulting in about 95 percent of Chinese solar production being exported overseas.


CASM contends that China’s illegal subsidisation of its export drive has enabled its industry to dump product in the U.S. market and unfairly capture market share since 2008. During the same period, the number of China’s solar manufacturers listed among the world’s ten largest has rocketed from just one to seven in 2011. Meanwhile, at least twelve crystalline silicon U.S. manufacturers have


June 2012 www.compoundsemiconductor.net 87


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