Sunergy enters French PV Market

China Sunergy, in collaboration with the French energy giant KDG Energy

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China Sunergy, in collaboration with the French energy giant KDG Energy, has started assembling its solar modules in France. It is one of the leading and earliest solar cell and module manufacturers in China providing services to module manufacturers and system integrators around the world.

According to the MOU signed in November 2011, KDG Energy will manufacture the solar modules under CSUN’s name in France, while CSUN will provide the required components to KDG Energy. All such modules will be labeled as “CSUN Made in France”. Actual production of these modules started this year and the first batch was delivered to Akuo Energy Group.

Earlier this year, CSUN also signed a 50MW contract with Austrian-based Bull Power Tech GmbH for a project in Germany. The company wishes to expand its foothold in the European market; therefore it believes that its operations with KDG Energy and Bull Power will help them in achieving their strategic goals.

According to its unaudited annual report of 2011, China Sunergy recorded revenues of US$566.3 million, an increase of 9.5% over the previous year. The total shipments also increased by 20.8% to 420.3 MW. However, due to adverse market conditions of over-capacity, a decrease in average selling prices and goodwill write-downs, the company suffered a net loss of US$94.3 million. Its CEO, Mr. Stephen Cai, is optimistic about the future, saying, “In 2012, we will solidify our position in the market by stringently controlling costs, improving product quality and efficiency, and satisfying customer needs. We believe we will maintain our position in Europe and expand our market share in high potential markets including India, China and Australia."

China Sunergy made its first shipment to the European market by delivering 1.59 MW solar modules to Emotion Energy in Scotland. Its contract with KDG energy will be its first major collaboration with a French PV manufacturer. KDG Energy is a part of the KDG Group, which uses its 25 years of manufacturing experience in high-tech electronic and optical products to produce high-efficiency PV modules.

Meanwhile, in France, the French manufacturer of solar panels Senersun entered into an agreement with French distributor KDI Solar, whereby KDI Solar acquired exclusive distribution rights in France for Senersun until 2014.

Senersun produces mono- and multi-crystalline panels, all black panels and amorphous si-thin film for homes and offices. Established by Chinese-based Senergy Corporation (Shanghai) Ltd, the company focuses on production of solar panels. Its head office is in France, with regional offices in Spain, Italy, Luxembourg and Germany. It operates as an independent division of Senergy Corporation. The business mainly focuses on the European market in general, and the French PV market in particular.

Senersun will take advantage of KDI Solar’s extensive distribution network throughout France. KDI Solar is a part of KDI Group, which is the leading French logistics company for metal products and general supplies. It has approximately 80 outlets throughout France, which will be used for distribution of Senersun’s products.

Both Senersun and KDG Energy are private companies serving the French PV market. Unlike the US, Germany or China, France has relatively fewer publicly listed PV manufacturers. France is the second-biggest nuclear energy producer in the world. A lack of publicly listed companies shows that solar power is not the French government’s priority. A growing residential PV market existed in France that enjoyed a 50% tax credit on PV systems, but the decrease of the tax credit to 22.5% increased the cost of such systems for the consumer. The French government was still undecided on feed-in-tariffs. The lack of consistency on solar policies creates an unhealthy environment for investment. However, after the Fukushima Nuclear Power Plant disaster it is expected that things in France will change.

Despite the government’s lack of interest, the solar PV market of France continues to grow. According to the European Photovoltaic Industry Association’s (EPIA) press release (Jan, 2012), the global PV market has grown continuously over the years. The global PV capacity has increased by almost 70% from 39.7 GW in 2010 to 67.4 GW in 2011. Almost 75% of this growth occurred in Europe.

EDF and Total are the leading French energy providers. In 2005, they entered the solar PV market by purchasing 100% of the shares (50% each) of Tenesol. Since then, Total and EDF have transformed Tenesol into the largest PV manufacturer in France.  Later in 2011, Total purchased EDF’s shares in Tenesol, thereby becoming the major owner of Tenesol.

EDF, on the other hand, continues to grow in the solar energy industry through their subsidiaries EDF Energies Nouvelles and EDF ENR. Both of these subsidiaries are involved in renewable energy production and marketing and consider photovoltaic a priority business area. During 2011, EDF had 494.1 MW solar photovoltaic capacities in France, Italy, Spain, Greece, United States and Canada.

According to the EPIA’s new ‘market report 2011’, the top PV market of the world was Italy, while France was placed in the fifth position after Germany, China and USA. Although the French PV market grew in 2011, China has surpassed all expectations by showing a growth of nearly five times in one year.

Within Europe, Italy and France have shown the strongest growth and collectively accounted for 82% of the European market. The French government has offered relatively fewer incentives to PV manufacturers as compared to other European governments. Earlier, tax credits were reduced and then feed-in-tariffs were reduced by more than 75%. Some see this as opportunity in disguise, as government incentives are often unsustainable in the long run. China on the other hand is expected to touch the 6GW PV installation level in 2012. With growth in the French PV market and collaborations between Chinese and French PV manufacturers, the future of French PV market seems bright.