Manufacturer seeks government assistance for local solar cell makers

Danucha Noichaiboon, managing director of the producer of transformers and solar cells, said last week that domestic manufacturers cannot compete with Chinese exporters that dump their solar panels in the Thai market at 20-30 per cent lower prices.
After suspending production to restructure its finances and operations, Ekarat plans to reopen its solar factory next month. The company hopes to secure some 10-20 megawatts out of the additional 800 megawatts from solar power projects that the current government has approved for state agencies and cooperatives to develop for their own use.
The company is also eyeing providing installation services for the solar systems of other developers. Ekarat targets clinching a total 40MW of solar cell contracts next year, generating Bt2.4 billion in revenue. “But this is provided that we win support from the government,” he said.
The company expects its distribution transformer business to grow by 10 per cent annually. Its backlog is Bt800 million, of which Bt500 million will be booked on its profit-and-loss statement this year, and the rest in 2015.
The Provincial Electricity Authority, one of the company’s largest clients, has ceased its auctions for new transformers pending the appointment of its chairman. The company has already factored in the loss of income from the PEA for the rest of this year into its sales projection of Bt2 billion for this year, he added.
Vice Energy Minister Praipol Koomsup said it would be difficult for a small country like Thailand to erect a tariff barrier to protect its local industries since the affected country could file a complaint to the World Trade Organisation and take retaliatory measures against Thai goods.
“We must consider our bargaining power. India might not fear to come up with measures to protect its industries. But we must find other ways because our competitor is China, which has very low costs,” he said.
The Industry Ministry might consider issuing safety standards for solar cell systems to help protect local consumers from possible damage while guarding against unfair dumping of solar panels and equipment from foreign producers, he said.