Released on = June 4, 2007, 4:01 am

Press Release Author = Shushmul Maheshwari

Industry = Energy

Press Release Summary = Despite observing rapid growth in the production of solar
cells, Chinese PV industry is facing huge potential risk owing to inadequate govt.
support and the sluggish growth in overseas markets.

Press Release Body = “China Energy Sector Analysis” – a recent
market research report published by RNCOS – has found, “Production of
solar cells in China has shown an impressive growth over the last few years. Within
just two-three years (roughly during 2003-2005), the country’s share in solar
cell production, relative to global production, rose to 8% (from 1.07%), next only
to Japan & Europe.”

Growing further, solar cell production in China reached 370 MW (excluding the 200 MW
output of Taiwan) in 2006. However, the photovoltaic (PV) market of China is still
not able to match up the pace of development of photovoltaic industry. As a result
of this, the Chinese PV industry is confronting huge potential risks.

The solar energy market overseas remains unsatisfactory in contrast to the vigorous
expansion of production capacity. Currently, German market – that’s the
world’s largest consumer of solar cells– is going down and other
overseas markets are also growing slowly. As over 94% of the China’s solar
cell products are exported, this slow rate of growth in foreign lands comes as
another reason why Chinese PV industry is at risk.

Unlike developed countries, no specific subsidy policy is provided by China for its
PV industry. It is still far behind the developed countries, for example Japan and
Germany, in both scientific research system and infrastructure. Therefore, the
Chinese govt. should offer incentives and subsidies for solar energy-based
electricity generation since this will encourage demand in domestic PV market and
also ensure the expansion of PV industry, advocated people from the industry in the
CNEC International Solar Energy and Photovoltaic Conference held in Shanghai on May
10, 2007.

As per the RNCOS report on “China Energy Sector Analysis”, China has
ambitious plans towards developing the renewable energy sources, however, coal is
expected to remain the principal source of energy in near-term. But with advancement
in technology, renewable sources will be able to compete with coal at pricing front.

This report is a must read for investors, businesses, analysts, and individuals who
are closely monitoring the developments in China’s energy sector. It helps
clients in analyzing the opportunities critical to the growth of the energy industry
in China. The key issues and facts analyzed in the report include opportunities and
challenges in the China energy industry, China energy consumption by energy source,
etc.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM501.htm
Current Industry News: http://www.rncos.com/blog



Web Site = http://www.rncos.com

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com