SunEdison filing for bankruptcy protection sends ripples through the PV value chain but is not bound to affect the solar industry fundamentally. Analysis follows from the IHS solar analysis team.
Comments from Josefin Berg, Senior Analyst, Solar Demand, IHS
“Having the Chapter 11 filing on the table starts the process to settle SunEdison’s future. Questions have piled up regarding SunEdison’s assets, project pipeline and joint ventures across the world. It will take all of 2016 to untangle this giant’s complex business structure, attained from its aggressive expansion over recent years.”
“We estimate that SunEdison owns approximately 0.7 GW of operating PV systems globally, not including those owned by Terraform. The total PV pipeline extends to 7 GW spread across the Americas and Asia. SunEdison has built substantial pipeline in emerging PV markets. IHS ranks SunEdison as the second largest PV developer after Enel Green Power. Chapter 11 proceedings could potentially offer opportunities for investors to buy late-stage projects.”
Comments from Edurne Zoco, Senior Research Manager, Solar Supply Chain, IHS
“Bankruptcy filings will not impact the global PV supply chain. It will mainly affect direct suppliers and partners. At the moment, there is no obvious buyer of SunEdison’s remaining manufacturing assets. As part of ongoing restructuring, SunEdison idled its Pasadena polysilicon plant at the end of 2015 and entered into an agreement to sell its Malaysia wafering facility to LONGi. The closing of its polysilicon Pasadena plant and increased uncertainty over the future of Sunedison’s polysilicon facility in South Korea, which further reduce the already stalled polysilicon manufacturing base, raises additional concern over the global polysilicon demand-supply situation in 2016.”
