Nuclear-free Japan a boon for Chinese PV makers

With Japan seemingly on the road to minimizing nuclear power, the resulting void is a welcome opportunity for the Chinese.

The shutting down of Japan’s last nuclear reactor last week has goaded Chinese photovoltaic companies to expand their operations in Japan. At least five Chinese solar panel manufacturers since the start of the year have set up offices in Japan to exploit new business opportunities presented by Japan’s shunning of nuclear power.

Among these are Yingli Green Energy, Hareon Solar Technology Co Ltd and Chaori Solar Energy Science & Technology Co Ltd.

Analysts believe the shutdown of Japan’s nuclear reactors will definitely give the Chinese photovoltaic makers a new opportunity to expand their markets. In addition, the Japanese government’s decision to subsidize renewable energy providers will make Japan a very attractive market for Chinese PV makers.

China accounts for 95% of the world’s production of solar panels. Of this total Chinese PV panel production, over 90% are for export.

There are some 500 Chinese PV firms and about one-third of the total has suspended production due to overcapacity.

The China Renewable Energy Society estimated the production capacity of the Chinese PV industry reached 40 gigawatts in 2011 but manufactured only 21 gigawatts.

Chinese PV makers are reeling from a decision by the Chinese government to reduce its subsidies and from U.S. anti-subsidy and anti-dumping investigations.