AugustineMinh @AugustineMinh: "𝗧𝗛𝗘 𝗥𝗘𝗖𝗘𝗡𝗧 𝗗𝗢𝗪𝗡𝗧𝗨𝗥𝗡 𝗢𝗙 𝗧𝗛𝗘..."

Vietnam

𝗧𝗛𝗘 𝗥𝗘𝗖𝗘𝗡𝗧 𝗗𝗢𝗪𝗡𝗧𝗨𝗥𝗡 𝗢𝗙 𝗧𝗛𝗘 𝗥𝗘𝗡𝗘𝗪𝗔𝗕𝗟𝗘 𝗜𝗡𝗗𝗨𝗦𝗧𝗥𝗬, 𝗘𝗫𝗣𝗟𝗔𝗜𝗡 The renewable industry has recently faced a sharp decline due to challenges from both supply and demand , which has caused the renewable stock values to drop significantly. This can create significant opportunities for brave investors. Let's explore what is causing this! - 𝗛𝗶𝗴𝗵 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲𝘀: Higher borrowing costs have dampened the demand for rooftop solar installations, especially in the US market. Solar customers typically finance their systems through loans or leases, which become more expensive as interest rates rise. This is the biggest reason for the fall! - 𝗣𝗼𝗹𝗶𝗰𝘆 𝗰𝗵𝗮𝗻𝗴𝗲𝘀: Regulations and incentives can affect the renewable industry, such as tariffs, subsidies, tax credits, and environmental standards. In California, the largest US solar market, regulators have recently approved a new tariff structure that reduces the compensation for solar homeowners who sell excess electricity to the grid. This has reduced the incentive for customers to go solar and increased the payback period for solar systems. - 𝗢𝘃𝗲𝗿𝘀𝘂𝗽𝗽𝗹𝘆: In Europe, the solar market is facing an oversupply of panels and inverters, which has led to lower prices and margins for solar equipment makers. The oversupply is partly due to the slowdown in demand caused by the Covid-19 pandemic and the uncertainty over the future of renewable energy subsidies. Global capacity for manufacturing wafers and cells, which are key solar PV elements, and for assembling them into solar panels (also known as modules), exceeded demand by at least 100% at the end of 2021. + 𝗜𝗻𝘁𝗲𝗻𝘀𝗲 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻: There are simply too much solar companies adding fuel to the oversupply caused by demand slump $S92.DE (SMA Solar Technology AG) $ENPH (Enphase Energy Inc.) $SEDG (SolarEdge Technologies) $CSIQ (Canadian Solar Inc.) $JKS (JinkoSolar Holding Co Ltd-ADR) $SOL.US (Emeren Group Ltd-ADR) + 𝗦𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻 𝗯𝗼𝘁𝘁𝗹𝗲𝗻𝗲𝗰𝗸: By contrast, production of polysilicon, the key material for solar PV, is currently a bottleneck in an otherwise oversupplied supply chain. $DQ (Daqo New Energy Corp-ADR) $3800.HK (GCL Technology Holdings Ltd) - 𝗚𝗿𝗶𝗱 𝗶𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 𝗯𝗼𝘁𝘁𝗹𝗲𝗻𝗲𝗰𝗸𝘀: There are constraints in integrating the variable and distributed renewable energy sources into the existing power grids, which are designed for centralized and stable fossil fuel generation. These bottlenecks provide opportunity for grid infrastructure and technologies, such as transmission lines, storage, and smart grids. However, this is not the recent bottlenecks but have been the biggest and most overlooked struggle for renewable for a long time $WIRE $LTHM $ATKR (Atkore Inc.) $ETN (Eaton Corp PLC) $STEM (Stem Inc.) $SCCO (Southern Copper Corp)

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