Monday, January 11, 2010

China gearing up for reduction of Carbon emmision....

eSolar strikes deal to build power plants in China
By: The Associated Press 09 Jan 2010 07:15 AM ET
BEIJING - A U.S. solar power company said Saturday it will help build a series of solar thermal power plants in China, as the world's biggest emitter of greenhouse gases tries to decrease its heavy reliance on coal, imported gas and oil.
California-based eSolar Inc. will provide Shandong Penglai Electric Power Equipment Manufacturing Co. with the technology and information to build the concentrated solar thermal power farms with a capacity totaling 2,000 megawatts.
The $5 billion investment would be the largest such project in China, though the companies didn't say who would be investing how much.
"This is a huge jump for China," said Deborah Seligsohn, director of the China climate program for the U.S-based World Resources Institute. "That amount suggests a number of commercial plants."
Interest in China as a solar energy market is growing quickly as the government looks for alternatives to coal. Saturday's deal comes four months after the largest solar panel maker in the U.S., First Solar, struck a tentative deal to build a massive solar field in China.
The eSolar deal is for concentrated solar thermal power — not the traditional image of vast farms of solar panels, but a system of taking what essentially are mirrors and focusing them to heat water to create steam to power a generator.
"There's room in the world for both systems, and we need both," Seligsohn said.
China is moving much faster than the U.S. in solar power development, eSolar officials said.
"This is an excellent example of what we all must do to fight climate change," Merrick Kerr, eSolar's chief financial officer, told a news conference Saturday in Beijing.
The first solar plant under the deal will be in Yulin city in the central province of Shaanxi.
China has set ambitious goals for solar and other renewable energy in an effort to clean up its environment and curb surging demand for imported oil and gas, which communist leaders see as a strategic weakness.
Late last year, legislators approved changes to China's 2006 renewable energy law saying utilities will be required to buy all the power produced by wind farms and other renewable sources in an effort to reduce heavy reliance on coal.
Government goals issued in 2005 call for at least 15 percent of China's power to come from wind, solar and hydropower by 2020, up from 9 percent now. Officials say that target may be raised to 20 percent because the industry is developing so quickly.

Coal, however, provides two-thirds of China's power and is expected to remain the dominant energy source in coming years.
China is the world's biggest emitter of greenhouse gases and is not bound by global agreements on curbing emissions because it is a developing economy. But the State Council, or China's Cabinet,
has promised to reduce emissions of carbon dioxide for each unit of economic output by 40 percent to 45 percent from 2005 levels by 2020.

My Comments:

China has declared that they will reduce the carbon emmission of certain amt by 2020.On that day the pressure came on India as well to declare the reduction of CO.But India has so far not declared any plans for reduction in emmission of CO.

But with the above order which China gave to one of the US Co , a multibillion order, $5 bn , for installing Solar Plants in China, India will have to buck up on this sector.China is doing the right thing to become a super power.When our politician will wake up is another call.The beurocracy should be trimmed down or cut down to size otherwise India will lose the golden chance to steer ahead of rest of the world.The problem in India is the Plans never gets finished in time.Take the case of Bandra Sea link.It took more then stipulated time and hence ended up with more expense.The cost went up by whopping 40-60% and maybe more.

When India will learn to finish the work in time?There are lots of hurdles that keeps on coming from the beurocracy.India needs to comeout from that shackles .When I read on Internet that Bandra Kurla Sealink was made open and it took 14 yrs to do that,there was a comparison with China.It was written that in that much time China would have made 6 Sealink of same type.

Now 6 timesmeans just imagine the saving in cost, human hours and moreover people starts using these much earlier that saves in petrol and time.

India will have to understand that complition of projects in time is upmost priority otherwise we will dole out more money as cost will go up with passing of time as commodities is still going to go up.For completing project in time, discipline is needed.That is what needs to come first.The hurdles of the beurocracy needs to be broken.The bribe should stop taking place.

Oh, India has to buck up in many ways.....when that will be done?China want to be a new super power and it is doing all things in right direction...when will India Wakeup?

The list where Co in India is in Carbon Credit:

1)NHPC (Recently RJ is buying)


3)SRF Ltd

4)Suraya Chakra Power

5)Torrent Power

6)Euro Multivision


8)XL Tele

9)Sahyadri Ind

10)Indo Wind

11)Guj Flouro


These are some names coming to my mind.


  1. Dear Mr Rajiv,
    Well China has taken to measures to reduce the carbon emission norms and we in India also need to take action rather will be compelled to take action. But we all need to research as to which are companies which will benefit when we(India) take action on the production of solar power. Indo Wind is already on its way up, but who are the rest who will benefit other than the carbon credit beneficiaries already mentioned by you.

  2. Dear Rajeev,

    Somehow we Indians dont seem to have the patriotism that chinese have. They try to excell at everything.Every Chinense wants their country to be number One and works hard towards it.

    DO WE ????

    When this changes everything will fall in place including our politicians.

  3. Hi,
    like to post a link which I came across MMB on solar power Mission of India.
    It looks good but as we know in India , implementation on time is the main problem.

    With Regards,

  4. Hi, forgot to mention, the link also discuses in detail about leading solar energy companies.
    And Rajeev' picks like PAE, Suryachakra, XL telecom & energy, Euro-vision are covered in it.
    Please go through it and decide your picks.

  5. Vikas,
    I know this person,bsegems.He is a good friend of mine and I have his report as well.....

  6. Dear Vikas

    I went to solar solar mission power india link but iam unable to read
    or download the message

    could you pleae help me out

  7. niras,
    write the website name atleast so that one can try to open and write here...which website u opened.

  8. Rajeev,

    This is definitely Good Initiative.

    The business model of the present carbon credit companies is that, they produce goods with less carbon emission, mainly by pumping the solid CO2 in ground.

    This business model may get extended to borrowing the Credit, (similar to Carbon Credit) from the companies that produce Electricity/Goods using Solar as the source of power.

    The whole world is looking for alternative energy.
    If we see the strength of US and Europe, they have huge lands and natural resources (Forest+Fresh water Lakes). Thus, these people can afford fuels like Bio Diesel, Wind etc.

    We have stroking sun for almost 12 months. So, Solar Sector should be considered soon by the Govt.

    Also, I have read that NTPC is going to install 600MW Solar Power Plant. Out of this, 300-400 will be Solar thermal and rest will be Photovoltaic.

    So, saying that Govt is not considering this at all would not be fair. But certainly there is a difference in the way Chinese conducted Olympics compared with other developed countries.

    Final note:
    I am looking for some good companies in solar to enter. Please let me know if you find any good companies.

    Sorry for the Long comment :)

    Take Care

  9. Prashant,
    My concern is not Governmnet doing anything.My concern is it is not implemented and the hurdles from bruorocacy...

  10. Dear Rajeev

    iam able to enter into website but
    unable to downlaod and retrive any

  11. the author has disabled the download

  12. Hi Rajeev,
    Need your suggestion.
    Today my broker gave a call on Panama Petrochem.
    I studied it.
    +ve - Low equity, Good promoters' stake(increased from 43% in March 2009 to 55% in Sept. 2009), less debt, good dividend yield, near its book value, FV-10
    -ve - Competitive industry, ? future prospects.

    Need your guidance on this one.
    With Regards,

  13. Dear prashant

    the following are companies comming to my mind

    webel(very good one)

    moser bayer

    xl tele and goldstone infra.
    (dark horses and good potential)

    goldstone infra in what they have or propses to do it is akilling in the making

    any body having any updates on goldstone infra please share

  14. Kindly see the following link and comment.



  15. Dear Mr Rajeev

    Surya Roshni has hit the 20% upper circuit around Rs 81, I have purchased the share around Rs 41 when there was strong buy call from your side, Iam really proud of you and thanks a lot, This is the third stock in my portfolio to hit more than 100% profit
    1) Madhucon
    2) Sabero
    3) Surya Roshni

  16. Dear Mr Rajeev
    Iam Reproducing you advice for the
    benefit of the readers

    Surya Roshni...........another Gem!...cmp Rs 40.00
    I am again giving you a same type of stock which is going cheap.
    Surya Roshni is the company I am talking about.Again same parametres can be compared like Gayatri Project Ltd.It has a turnover of Rs 1000 cr and it cmp is just Rs 40.Means a Rs 1000 cr company is available at just Rs Rs 104 cr ! That is a great deal.
    I just read the annoucement that they are going to invest Rs 550 cr in next 1 year and they are targetting to make Surya Roshni a billion dollar co.Means the sales will rise to Rs 4500 cr by 2012 and that is achievable as they are already at Rs 1000 cr.
    Looking at the last qr result they have performed very well on earning front and they are exporting in many countries.
    This is another multibagger in making according to me.
    I have mentioned about Agro cos in my last post and gave some name.One need to look at those and buy some stocks in that sector.
    Coming back to Surya Roshni I would like my readers to find the order book position etc.......But the reason to recomend it here is,it is in lighting sector and in they make eco friendly bulbs and with US Prez putting more emphasize on eco friendly sector it is good for Surya Roshni.
    It has also got a Steel division which makes Pipes and that is an added advantage for this multibagger in making

  17. nirash,
    The credit goes to you as well for holding it when Surya Roshni was not moving.
    Now sell 50% and take your money out and keep the rest for bigger fortune.....This stock can do wonders in one portfolio if things gets settles properly....