Asia Report: US-Taiwan Solar Trade Dispute Forges On

New Hampshire, USA -- The U.S. International Trade Commission (ITC) has voted — unanimously — to move ahead in its investigation of Taiwanese imports of solar PV products, continuing the latest storyline in the broad U.S.-vs.-China solar trade war.

This latest and not unexpected move, which was spurred by a new petition at the end of December, seeks to close a loophole in the earlier trade ruling by which Chinese solar PV companies can circumvent tariffs by having cells made elsewhere before being reassembled for export.

The usual sides have redrawn familiar battle lines applauding and decrying the decision and continued pressure. SolarWorld America president Mukesh Dulani invoked the example of Oregon neighbor and semiconductor leader Intel as proof that U.S. manufacturing can succeed, "so please do not tell us that U.S. manufacturers who pioneered and built the solar industry cannot compete globally under conditions of fair trade." Jigar Shah, on behalf of the Coalition for Affordable Solar Energy, points out that the dispute hits the U.S. solar industry heaviest in the installation end, jobs that aren't easily replaced.

In an interesting twist, Chinese companies Yingli and Hanwha have petitioned the U.S Department of Commerce to represent Taiwan solar PV interests. The initial investigation of China, which is not technically a market economy, presented challenges in obtaining and analyzing the country's solar PV participants chosen as examples. Taiwan, though, technically is a market economy, and the D.O.C. has more flexibility in whom and how it can choose to look at for specific numbers about production, costs, and sales. Taiwanese companies reportedly don't want to be represented by mainland Chinese solar PV interests, and have sought and reportedly obtained support from Taiwan's Ministry of Economic Affairs.

The I.T.C. will present its views to the DOC on Feb. 24; preliminary determination of countervailing duties are due on March 26, and an antidumping duty ruling is expected by the second week of June. A final ruling could take a full year to come down.

IN THE NEWS

Solar in India, Domestic and Local Update: The U.S. has filed a petition with the World Trade Organization challenging domestic content provisions within India's "Phase II" of its National Solar Mission (NSM). If no resolution happens within 60 days the U.S. may press for a formal WTO panel to settle the issue — but that could take several years, so expect a desire for a more bilateral decision in the meantime, especially given the WTO's earlier ruling against similar domestic content policies in Ontario. At a more local level, the Tamil Nadu State Electricity Regulatory Commission has adjusted its solar energy "roadmap" that puts more responsibility on the state utility Tangedco to meet mandatory targets, rather than on large energy users. The previous plan "had the potential to stop the implementation of the state's solar policy in its tracks," writes Bridge to India, and the new version will likely be a burden on distributors. Yet that plan also "was an innovative tool that could have helped make solar more market-driven," the firm says. "The effort of the Tamil Nadu state government to continue to try and make solar work in the state must be lauded."

Japan Culling Underperforming Solar Producers: Fulfilling a promise it made last year, Japan's Ministry of Economy, Trade and Industry (METI) is warning that over the next six months it will cancel approvals for hundreds of solar power plant operators who have lagged in getting facilities and land approved. In a recent study, METI confirmed that barely a fifth of roughly 4,700 large-scale solar plants ( >400 kW) that applied for the feed-in tariff.

Yingli, Trina Dominate Solar Rankings: Yingli Green Energy and Trina Solar shipped more than 5.8 GW of solar PV modules in 2013, good enough for 15 percent of the market all by themselves, according to SolarBuzz analysis. Yingli built on its first-place position in module shipments, and also became the top solar PV cell producer in 2013 for the first time.