Chinese Solar Power Company Shares Rise on Government Subsidy
July 22 (Bloomberg) — Chinese solar power companies, led by Wuhan Linuo Solar Energy Group Ltd., rose in both mainland and Hong Kong trading after the government announced subsidies for solar power projects.
Wuhan Linuo surged by 10 percent, the daily-limit, to 12.13 yuan as of the 11:30 a.m. midday break in Shanghai. China Singyes Solar Technologies Holdings Ltd. rose as much as 9.5 percent to HK$4.26 and traded at HK$4.12 as of 12:30 p.m. in Hong Kong and Solargiga Energy Holdings Ltd. climbed 6.27 percent.
The Chinese government will “in principle” provide subsidies amounting to 50 percent of the total investment in electricity projects that feed into the power grid, the Ministry of Finance said in a statement late yesterday. For projects in remote areas affected by power shortage, the subsidy will be equal to 70 percent of the total cost, it said.
China is expanding the development of renewable energy, including solar and wind power, to stimulate its economy and reduce a reliance on fossil fuels. China last year became the world’s largest emitter of greenhouse gasses, most of which come from burning coal to generate electricity.
Verbund, Siemens Plan Austrian Grid for Electric Cars
July 22 (Bloomberg) — Verbund, Austria’s largest utility, Siemens AG and several partners plan to invest as much as 50 million euros ($71 million) to build the Alpine country’s first power network for recharging electric cars.
Together with car-parts maker Magna International Inc. and electric-motorcycle manufacturer KTM Power Sports AG, the group will service 100 vehicles next year and 1,000 by 2012 in a yet- to-be-determined Austrian urban area, Verbund Chief Executive Officer Wolfgang Anzengruber said today at a briefing in Vienna.
The investment helps Austria prepare for a surge in demand triggered in part by its joining a global treaty to reduce carbon emissions from sources such as gasoline-burning cars. Industry forecaster CSM Worldwide predicts global electric- vehicle output will rise to 132,067 in 2015 from 7,115 units in 2009, Yoshiaki Kawano, an analyst at CSM, said this month.
“This project aims to put 100,000 electric cars on Austria’s roads by 2020,” said Anzengruber, whose Vienna-based company will supply electricity in the experimental program.
In the market for low-pollution cars, Nissan Motor Co. is competing with Toyota Motor Corp., the largest seller of gas- electric hybrids, Honda Motor Co., General Motors Corp. and Hyundai Motor Co. New entries in the market include California’s Tesla Motors Inc., a maker of luxury electric sports cars, and BYD Co., a Chinese car and battery maker backed by Warren Buffett.