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SOLAR

Lights go out at leading German solar firm

Germany’s leading maker of solar cells, Q-Cells, said Monday it was ready to file for bankruptcy as it no longer saw any secure financial basis for a continuation of its business.

Lights go out at leading German solar firm
Photo: DPA

“Following an intensive review of alternative concepts for the implementation of financial restructuring, the executive board has reached the conclusion that a going concern … cannot be restored on a sufficiently secure legal basis,” the ailing group said in a statement.

“Therefore the filing for insolvency proceedings is legally necessary.”

Q-Cells said its executive board and the preliminary administrator “will work together to secure the continuity of the company within the insolvency proceedings.”

Q-Cells, which employs more than 2,000 people, has been in dire financial straits for weeks. Its collapse comes after a series of corporate failures in the solar power sector in Germany recently.

Shares in the firm lost more than 30 percent of their worth on Monday morning on the back of rumours about the company’s financial health. By the middle of the afternoon, management had confirmed they would be filing for bankruptcy on Tuesday.

AFP/hc

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ENERGY

Could the Norwegian government introduce a cap on energy prices? 

Due to soaring prices, the Norwegian government is mulling over several solutions, including a potential price cap for electricity and limiting energy exports abroad. 

Could the Norwegian government introduce a cap on energy prices? 

High energy exports in the last 12 months, low filling levels in Norwegian reservoirs and an uncertain energy situation around Europe have led to soaring electricity prices in southern Norway. 

Last year the government introduced a scheme whereby it covers 80 percent of consumers’ energy bills where the price rose above 70 øre/kWh. The portion of the bill under 70 øre is paid in full by households. The portion the government covers will increase to 90 percent in October. 

Critics have argued that the current scheme still leaves households struggling with their bills. As a result, Norway’s government has said it is mulling its options to curb energy bills.

Norway primarily depends on hydroelectric dams to help it meet its energy needs. Still, reservoirs in southern Norway have been at the lowest level for ten years, public broadcaster NRK reports. 

Low reservoir filling over the past year has conceded with record exports with higher prices on the continent, making sending power abroad an enticing proposition.

Recently, exports have fallen significantly, and the government is considering introducing a limit to reduce the possibility of energy rationing being introduced this winter. 

“Restrictions on the export of electricity to Europe may be one of the measures that is needed,” Elisabeth Sæther, state secretary at the Ministry of Oil and Energy, told NRK. 

Earlier this week, Prime Minister Jonas Gahr Støre ruled out completely shutting off exports to the continent. 

“It is a dangerous thought and will not serve us well. It could give us more expensive power and lack of power in given situations. We will hardly be able to import power when we need it without contributing to other countries when they need it. There is a reciprocity in this,” he told the newspaper Aftenposten earlier in the week. 

Sæther also told NRK that the government was weighing up putting a maximum price on energy but warned that it could have unforeseen consequences. 

“We are afraid that a maximum price means that more water is drawn into the reservoirs, which we need for the winter. It is a serious situation. We must prevent ourselves from getting into a situation where we lack enough power this winter,” she told the broadcaster. 

At the end of May, the state-owned Statnett announced that the supply situation in Norway might be under strain – in some scenarios – all the way up to and through the winter, especially if Southern Norway experiences drier than usual weather in the second part of the year. 

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