The Aim for Expanding The Solar Market Is to Replace Unclean Energy Sources

The aim for expanding the solar market is to replace unclean energy sources. However, the production of polysilicon requires a large amount of electricity that is currently generated from fossil fuels, which contributes to increased CO2 emissions, according to a report for China-based Solar-PV. The report used China-based LDK as an example and noted that LDK has been receiving electricity subsidies of more than CNY100 million (US$16 million) per year. According to Digitimes Research, the government in Jiangxi, where LDK is located, hopes to increase polysilicon production from the current capacity of 146,000 tons in 2012. The report stated that LDK's current polysilicon capacity is around 110,000 tons, this means LDK's current capacity accounts for the majority of polysilicon production in Jiangxi and shows how important it is for LDK to exist. Solar-PV stated that in 2008, LDK enjoyed a rate of CNY0.48/kWh while others paid CNY0.60/kWh on its electricity bills. The price difference of CNY0.12/kWh was covered by the government. The report indicated that LDK's total energy consumption from polysilicon and solar wafers in a year can reach one billion kWh. This means LDK receives approximately CNY120 million in subsidies on its electricity bill per year. The report further noted that with the government's help in saving on electricity bills, solar firms are more inclined to continue to expand polysilicon capacity, leading to more demand for electricity generated from fossil fuels. But this goes against the aim of the solar industry. This raises concerns about the short-term true cost of making energy saving products such as solar cells, even though in the long-run, the more people using solar power systems the better for the environment. Source: www.digitimes.com