Aenert news. Energy Companies
The second quarter of each year is a good time for solar power, when generation in the most populated northern hemisphere increases sharply after short, cloudy winter days. According to our calculations from the Ember analytical center database, global electricity demand in 2024Q2 was approximately 7,095 TWh, which is 4.5% more than in the same period last year. The leader in electricity demand for this period was, for obvious reasons, China, where consumption amounted to 2,319 TWh, which is 5% more than in the same quarter last year. According to the National Energy Administration (NEA), China's new PV installations reached 102.48 GW in the first half of the year, up 30.68% year on year. Among other large countries, Germany should be singled out, where demand for the second quarter was virtually unchanged year on year. Against this background, the volume of electricity generation from solar sources, primarily from photovoltaics, was at a record high. In total, 556 TWh of electricity was generated worldwide by solar energy in 2024Q2. Moreover, the increase compared to the same quarter last year was a gigantic 25%, and the share of total consumption increased year-on-year from 6.6% to 7.8%. In China, 206.8 TWh were generated by solar sources, or +35.5% compared to 2023Q2. In turn, this is almost 9% of the total electricity consumption in this country. In Germany, in the quarter under review this year, electricity generation by photovoltaics increased by more than 10.5% and amounted to 25.6 TWh. At the same time, solar sources provided 21.6% of electricity consumption in the country. These are certainly impressive results.

Solar power station. Envato Elements. XZWN5JFVTH

However, the financial performance indicators of the leading solar panel manufacturers in 2024Q2 presented below do not always correspond to the vigorous and large-scale growth of solar energy. There is a current oversupply of production, which, following wind energy, has also come to the solar generation sector. Of course, this is a very painful period for manufacturers. But we should not forget that the boom in the production of photovoltaic panels that began several years ago attracted a large number of new companies to this activity, which inevitably led to increased competition in this market. As usual, we can state that the market will definitely stabilize, that the strongest will survive, that the quality of products and service will improve, that new advanced technical solutions will be implemented. Yes, all this is true, however, this is a very strict regulatory mechanism, which, in addition to positive acquisitions, is also characterized by serious losses.

Below, we traditionally provide excerpts from the quarterly reports of several leading photovoltaic companies, demonstrating their current financial condition.

Longi

Longi is one of China's largest public companies and one of the world's largest manufacturers of mono- and polycrystalline silicon products, photovoltaic cells and solar modules. The company operates in 150 countries in all major regions of the world, but its main market is China. The R&D department has more than 4,000 employees. The total number of patents owned by Longi exceeds 2,500. This year, the company launched the Hi-MO 9 bifacial module based on the high-efficiency HPBC 2.0 back-contact cell technology with an efficiency of 24.43%.

Longi. Revenue, net income and share price

Source: Longi

In the first half of this year, Longi shipped 44.44 GW of silicon wafers, of which 21.96 GW was sold to external customers. In addition, 2.66 GW of solar cells and 31.34 GW of solar modules were sold. LONGi achieved a significant year-on-year growth of over 140% in its sales volume in the Asia-Pacific region in the first half of the year.

However, the second quarter of this year was not the best for Longi. As in the two previous quarters, a loss was recorded, amounting to RMB 2,893 million. Revenue was at RMB 20,885 million (RMB 17,674 million in 2024Q1). The company's share price continued its rapid decline, which has been ongoing for the eighth consecutive quarter. However, Longi is confident that it can overcome temporary problems and stated that "in a complex and unstable market environment, the company has demonstrated strong resilience and market adaptability."

First Solar Inc.

First Solar is the leading American company in the field of solar energy. Unlike most other companies that use crystalline silicon in PV designs, First Solar specializes in the production of thin film PV modules with a layer of Cadmium Telluride (CadTel) semiconductor. The company's main production facilities are located in the United States.

The results of 2024Q2 demonstrated that First Solar is one of the few leading companies in solar energy that continues to confidently receive good profits. In the second quarter of this year, with net sales of $1010.5 million, net income was $349.4 million. This is 25% more than a year earlier and 27% more than in the previous quarter.

Jinko Solar is a vertically integrated company encompassing all elements of the production chain from silicon wafers to solar modules. Its 14 plants are located in China, the United States, Malaysia and Vietnam. More than 1,000 employees work in the company's research units. The company is headquartered in Shanghai, China. According to company documents, Jinko Solar has become the first module manufacturer in the world to have shipped a total of 260 GW of solar modules, covering nearly 200 countries and regions. The company's TOPCon N-type perovskite tandem solar cell has set a new record with a conversion efficiency of 33.24%.

Total shipments of solar modules, cells and wafers in 2024Q2 were 25,318 MW, up 36.0% year-on-year and up 15.6% quarter-on-quarter, with total revenue of $3.31 billion, up 4.4% quarter-on-quarter and down 21.6% quarter-on-quarter.

Canadian Solar, founded in 2001, is one of the world's largest solar module and energy storage battery companies. The company is headquartered in Ontario, Canada. The company has production facilities not only in Canada, but also in China, Brazil, Indonesia and Vietnam. In 2024Q2, Canadian Solar shipped 8.2 GW of solar modules to more than 70 countries. The largest markets were China, the United States, Pakistan, Germany and Brazil. Revenue was $1,635 million, down 30% from a year earlier and up 23% from the previous quarter.