LONGi Clarifies: Really Did Not Finish Contracts With Indian Power Developers

• In response to recent reports suggesting that Chinese PV supplier LONGi, to name a few solar developers, had withdrawn from authorized contracts with Indian power developers due to increasing commodity prices, the company provided an information mentioning that this info being circulated was false which no such agreements had been ended.

The firm declares that the rise in module rates was expected, owing to the rising expense of basic materials made use of for manufacturing, as well as discusses that contract terms were renegotiated with every programmer to make them equally beneficial for both celebrations. According to the company, it takes cognisance of the reality that independent power producers (IPPs) have slim margins in an extremely competitive market like India where modules make up 55-60% of task CAPEX, and has approved unfavorable margins as well as losses to fill up the cost gap to ensure that their customers' scheduled tasks can run based on schedule.

LONGi also acknowledges that it can not manage all the elements impacting the price of resources such as polysilicon (64% hike), PV glass (80%), silver paste (55%), etc, which has been steadily increasing considering that the last part of 2020. The 35% general hike has referred issue for almost all panel producers whose upstream cost has actually also gone up. The global pandemic also led to freight prices skyrocketing, additional boosting module costs.

Dennis She, Senior Vice President, LONGi Solar, said, "Our customers, which are leading IPPs in India and worldwide, are completely familiar with the rate boosts in raw materials and also freight price. It is a difficult situation as well as beyond any one of our control. It is in this scenario that LONGi and also our partners equally renegotiated the rate terms in supply agreements to make certain in a timely manner project conclusion. We are happy to announce that we have actually had the ability to efficiently meet mostly all our clients' orders and also made distributions on time. There has actually been no circumstances of unilateral agreement termination whatsoever. Actually, LONGi, being a vertically incorporated player, was able to reduce the price influence for our clients as long as feasible by becoming aware negative margins on the delivery of modules."

The company has stressed its strong, long-lasting connections with both big and little IPPs in India, which include several large and also strategic contracts authorized with leading solar power developers. It asserts that it continues to provide successfully on all its pledges, especially on its commitment to support the Indian government's mission to motivate the residential production of solar equipment. Based on the firm, it has actually been evaluating in wonderful information the establishment of a manufacturing base in India and preliminary preparations concerning the very same have already ended, consisting of the procurement of land in the nation to establish neighborhood production operations.

Mr. She added, "India has constantly been a market we have paid wonderful interest to. We want to provide high-efficiency monocrystalline photovoltaic (PV) items in India on a large scale along with support the government's plan of residential production. In 2020, we brought over 1.5 GW PV products to India, and also in 2021, we have actually currently supplied 1 GW till date, which has actually been praised and also relied on by Indian clients."