Import curbs urged on photovoltaic solar modules

Ekarat Engineering is calling on the government to build import barriers against photovoltaic (PV) solar modules to assist local producers.

Ekarat was earlier forced to restructure the debts it amassed to support its solar-cell factories.

Managing director Danucha Noichaiboon said that unlike many other countries that have put up barriers against imports, especially from Chinese producers that have dumped their PV modules in markets around the world, Thai producers were at the mercy of local regulations, putting them in a disadvantageous position. The Energy Ministry’s Department of Alternative Energy Development and Efficiency, he said, requires local solar-cell makers to comply with both the ISO 17028 and ISO 2580 or equivalent industrial standards, even though none of the four local producers has ever received the latter certificate.

Chinese producers, on the other hand, have already obtained equivalent standards and thus can freely enter the Thai market, which also does not levy any import duty on solar-PV imports.

“The US and Europe have enacted measures to protect their markets from dumping of Chinese solar PVs. Even in Korea or Malaysia, when I wanted to sell my solar cells, they said yes I can, but I had to obtain [approval under] their local standards. I had to pay Bt2 million for each model, and testing procedures took six months,” he said.

Danucha said Ekarat decided to invest in the solar PV project about a decade ago when the Thaksin Shinawatra government announced a policy to promote renewable energy. 

Power producers were required to build renewable-fuelled power stations, accounting for at least 5 per cent of their fossil-fuel-run projects.

But the requirement was abandoned by the Abhisit Vejjajiva administration a couple of years later.

“If we had not invested in the project, we would now be holding on to Bt2 billion in cash,” he said.

Ekarat’s main business is producing and selling transformers used by the Metropolitan Electricity Authority, the Provincial Electricity Authority, and general users including buildings, industries and other commercial electricity consumers. 

The company expects sales revenue of Bt2 billion this year. That figure will be slightly higher than actual sales revenue obtained last year, before proceeds from debt restructuring. 

It currently has orders on hand totalling Bt1.1 billion, Bt900 million of which will be for delivery in the fourth quarter. 

Ekarat expects its sales to grow by 10 per cent next year, excluding income from solar-power business. Danucha said the company was looking at investing in solar farms, both projects of its own and those developed for other companies.

He suggested that the government adjust the structure of the so-called feed-in tariff to give more return to solar-farm investors during the first six years of their commissions.

Ekarat, which currently produces transformers of up to 30,000 kilovolt-amps capacity, will study whether it is worthwhile to invest about Bt200 million to Bt300 million to expand into 60,000kVA transformers next year. Transformers of that capacity are used in substations and large factories.