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China’s Clean Energy Industries ‘May Struggle to Meet Obligations’

With overcapacity weighing down earnings and $4.6 billion in bond repayments on the near horizon, Bloomberg reports that China’s clean energy strategy is going through some growing pains. The report singles out wind turbine manufacturer Sinovel Wind Group Co. as a business that “may struggle to meet obligations.” And earlier this year, Shanghai Chaori Solar Energy Science & Technology Co. missed part of its payment on a bond that had come due. “Authorities are trying to cut manufacturing scope in green energy industries after overproduction caused equipment prices to tumble,” Chen writes. “While steps to reverse the solar glut globally mean executives are now bracing for the first shortfall since 2006, the scarcity would benefit the biggest manufacturers, including Yingli Green Energy Holdings Co. and Trina Solar Ltd.”

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