Solar power maker warns of delays or shutdowns in China electricity crisis – pv magazine USA
A Tier 1 solar module maker has warned customers in an email that energy shortages in China have forced it to scale back or halt production at its Chinese manufacturing sites. The company has warned that the event will also affect production at its downstream cell and module production facilities in Southeast Asia.
The note was dated October 4 and was sent by one of the senior executives of the US-based manufacturers. pv magazine United States asked the executive to confirm the authenticity of the note and will withhold the company name until confirmation is received.
The memo said that in order to recover from the effects of the “potential force majeure event”, it could delay or stop delivery of the equipment or seek to renegotiate contracts to pass on higher prices.
The rapid growth in domestic demand for electricity in China has been blamed on a national electricity shortage. China’s National Development and Reform Commission has mandated a policy of “double-checking energy consumption,” forcing energy-intensive industries to reduce or stop production.
The solar power maker’s memo said major solar materials, including aluminum, glass, metallurgical-grade silicon and other commodities, “are now scarce.”
As the winter heating season begins, shortages of electricity and raw materials are expected to intensify further, according to the note.
The manufacturer said it was negotiating with local governments in an effort to reduce the impact of electricity rationing and maintain normal operations. The company said it expects coal-fired power supply constraints and energy demand to ease in the first half of 2022, allowing industrial production to resume in affected provinces.
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