Coal news and updates

Solar energy companies under pressure as coal and nuclear get a boost

The National Energy Administration yesterday announced that as of the end of March, China’s total installed power generation capacity was about 2.40 billion kilowatts, a year-on-year increase of 7.8%.

Wind power accounted for about 340 million kilowatts, a year-on-year increase of 17.4%.

Solar power generated about 320 million kilowatts, a year-on-year increase of 22.9%.

Hydro power produced about 394 million kilowatts, a year-on-year increase of 6.2%.

Nuclear power generated about 54 million kilowatts, a year-on-year increase of 6.6%.

Ever since Beijing announced its “double carbon” reduction objectives in September 2020 of reaching peak carbon use in 2030 and carbon neutrality in 2060, the photovoltaic industry has surged. Yet is this industry now facing a flame out?

One of China’s largest manufacturers of solar inverters, a crucial piece of equipment in the solar energy system that converts direct current (DC) electricity generated by solar panels into alternating current (AC) used by the electrical grid, is Sungrow Power Supply Co., Ltd 阳光电源股份有限公司. With its main competitor, Huawei 化为, Sungrow accounted for more than 60% of China’s total photovoltaic inverter industry in 2021.

Sungrow announced net profits of 1.583 billion yuan ($246.79 million) for 2021, a year-on-year decrease of 19.01%.

For the fourth quarter of last year, the company’s net profits were only 77.93 million yuan ($12.14 million), a year-on-year decrease of 89.73%.