QUICK NEWS, October 2: CHINA’S OREGON WIND BUY BLOCKED; SUN’S SILICON OVERSUPPLY GOES ON; THE SLOW STEADY GROWTH OF CAR CHARGERS

CHINA’S OREGON WIND BUY BLOCKED White House Orders Chinese Firm to Divest From Wind Farm

Damian Paletta, Eric Morath and Carol E. Lee, October 1, 2012 (NASDAQ)

“President Barack Obama… took the unusual step of blocking foreign investment in a U.S. company, invoking national security concerns to prevent a firm owned by two Chinese nationals from acquiring four wind-farm- project companies…Ralls Corp., had sued the U.S. government in an effort to allow the acquisition to proceed, but the White House said the ‘wind farm sites are all within or in the vicinity of restricted air space at Naval Weapons Systems Training Facility Boardman in Oregon.’

“In blocking the investment, Mr. Obama followed the recommendations of the Committee on Foreign Investment in the United States[CFIUS], which is chaired by U.S. Treasury Secretary Timothy Geithner and includes top officials at the Pentagon and State Department, among others…The only other time the White House has used CFIUS to block an acquisition was on Feb. 1, 1990…when President George H.W. Bush prevented the acquisition of MAMCO Manufacturing by China National Aero-Technology Import & Export Corp., citing national security concerns…”

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“…[Both] Mr. Obama and his Republican challenger Mitt Romney are locked in a political fight over which candidate would be tougher on China…[and] trying to win over voters in the industrial Midwest…[and] decisive battleground states such as Ohio…The Obama administration has filed a series of trade complaints against China ahead of the November election, including one earlier this month, and the president has promoted the decisions on the campaign trail…Mr. Romney, in turn, has accused Mr. Obama of being soft on China and says he would label China as a currency manipulator…[The President] indicated he wouldn't take that step…

“Ralls Corp. is owned by executives from China-based Sany Group, a construction machinery firm…In March, Ralls Corp. acquired ownership of the four wind-farm projects, but the U.S. Navy objected to where the wind turbines were going to be…In June, CFIUS... asked [Ralls] to file a voluntary petition to have the acquisition retroactively reviewed…[In] July and August, CFIUS notified Ralls officials they couldn't proceed with their plans to build the wind farms…[and] prohibited the firm from selling its assets…On Sept. 12, the Ralls Corp. sued the government trying to reverse the decision.”

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SUN’S SILICON OVERSUPPLY GOES ON No End in Sight for Polysilicon Over-Supply; NPD Solarbuzz Forecasts Tier 1 Polysilicon Production Will be Greater than PV Industry Requires in 2012

October 1, 2012 (SolarBuzz)

“Despite the fact that most leading polysilicon producers have been operating at a loss, polysilicon capacity is expected to grow 22% in 2012 and a further 18% in 2013…Average industry-wide polysilicon prices for photovoltaic (PV) applications are forecast to drop 52% in 2012, while plant utilization is expected to decline from 77% in 2011 to 63%...

“Total polysilicon capacity will exceed 385,000 tons in 2012, of which 70% is held by a small number of tier 1 producers. In fact, these tier 1 providers alone are forecast to satisfy all polysilicon demand… for the next few years.”

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“Unless end-market demand provides a strong upside surprise to expected polysilicon requirements, many of the 57 tier 2 and 3 producers are likely to exit the industry within the next 18 months. Indeed, even a few of the less-experienced tier 1 makers may not survive…Average polysilicon prices are forecast to start to stabilize in 2013 at around $21/Kg, as the remaining players rationalize utilization rates in line with end-market requirements…

In addition to import duties, any increase in polysilicon prices will likely be limited by first tier supply sufficiency and end market demand for the next couple of years. However, tier 1 polysilicon producers continue to plan for longer term PV involvement, where low cost structures, economies of scale, and continuously improving productivity are expected to yield benefits as shipment volumes grow…”

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THE SLOW STEADY GROWTH OF CAR CHARGERS Electric Vehicle Charging Equipment; Level 1 and Level 2, DC Fast Charging, and Wireless EVSE: Global Market Analysis and Forecasts

3Q 2012 (Pike research/Navigant)

“The past 18 months have marked the transition of the plug-in electric vehicle (PEV) into full commercialization…[and] a major uptick in [electric vehicle supply equipment (EVSE) ]deployments. In 2012, there will be almost 45,000 public charging stations installed globally. Much of this will be the result of publicly funded infrastructure initiatives…

“…In comparison to government targets for PEVs, however, sales have been disappointing, and the relatively slow pace of PEV rollouts will act as a dampener on this market. With some exceptions, much of the private sector is waiting until PEVs are commonly seen on the roads in their areas before investing in charging infrastructure.”

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“The EVSE industry is still trying to determine the best way to create a viable return on investment (ROI) on EVSE station deployments for site hosts. This issue is going to become front and center as the publicly funded EVSE deployments wind down…

“…[I]t has been relatively easy to encourage businesses to become site hosts when the EVSE equipment is free or heavily subsidized. Nevertheless, global sales of charging equipment are expected to grow at a steady pace as the plug-in vehicle (PEV) market grows. Pike Research projects that the global EVSE market will increase from fewer than 200,000 units sold in 2012 to almost 2.4 million in 2020…”

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