CHINESE BANKS PUT $10BIL IN EU SUN

Chinese Banks Back $10 Billion Bid to Build Solar in Europe
Ehren Goossens, June 16, 2011 (Bloomberg News)

"Two Chinese banks are providing as much as $10 billion in funding to a group of three Chinese makers of solar equipment to build sun-powered energy projects in Europe…China Merchants Bank Co. and the state-owned China Development Bank Corp. are backing the efforts of Goldpoly New Energy Holdings Ltd., TBEA SunOasis Co. and China Technology Development Group Corp. (CTDC) to expand in Europe…

"The solar companies say their goals align with the Chinese government’s policies on promoting renewable energy, and that the German government’s plans to abandon nuclear power by 2022 will drive up demand for solar energy in the region…"

Europe is where the action is. (click to enlarge)

"The three companies plan to use modules produced with their own components, including polysilicon, wafers, cells and inverters…They expect to initially develop small projects and then move on to larger ones…An exact timeline and breakdown of the financing wasn’t disclosed. Lending by China Development Bank for clean energy projects exceeded $35.5 billion last year…

"China Development Bank has loaned to other Chinese solar power equipment makers, including more than $26 billion to LDK Solar Co., Trina Solar Ltd. (TSL), Yingli Green Energy Holding Co., Suntech Power Holdings Co. and JA Solar Holdings Co..."

And Europe is where the action will be for the next few years. (click to enlarge)

"The three solar makers said this is the first time three listed Chinese companies have formed such a group, and the funding will provide a new avenue to sell their own products.

"Other solar companies have purchased development companies to ensure demand for their products. SunPower Corp. (SPWRA), a U.S. maker of solar panels, bought Malta-based SunRay Renewable Energy in February 2010 to increase its sales in Europe. LDK Solar bought in January a 70 percent stake in Solar Power Inc."