Page 23 - RusRPTOct23

manufacturers have witnessed a sharp decline in their share prices this year, with industry leaders warning of impending mergers and takeovers.
The primary issue contributing to this upheaval is the relentless pace of technological advancement within the solar sector. Continuous improvements, such as more efficient designs and streamlined manufacturing processes, have historically led to lower panel prices, making solar energy increasingly affordable worldwide. However, this very progress has resulted in a rapid obsolescence cycle for state-of-the-art factories, necessitating constant reinvestment to remain competitive.
Investors are growing weary of this treadmill effect. When Jinko Solar Co., one of the industry's major panel manufacturers, announced plans to raise funds for a new facility, it triggered a sharp sell-off of its stock. China, home to the world's largest solar manufacturing industry, has seen its five largest manufacturers lose a combined 347 billion yuan ($48 billion) in market capitalization since the beginning of the year.
Even solar industry leaders are expressing concerns about the proliferation of new factories. They caution that overcapacity could lead to a wave of bankruptcies, mergers, and acquisitions over the next few years, potentially leaving just five to ten major players in the market.
Ironically, this upheaval aligns with the urgent need to combat climate change. Solar panels are now more affordable than ever, and global demand is skyrocketing, helping displace fossil fuels. China, in particular, has added a staggering 113 gigawatts of solar capacity this year, surpassing the total power generation capacity of all the UK's power plants combined. Despite the industry's challenges, the solar sector remains a critical player in the transition to cleaner, more sustainable energy sources.
2.12 Russia’s oil market growing again
Russia's oil markets, which experienced a dramatic contraction following the invasion of Ukraine in February 2022, are showing signs of growth once again as Moscow seeks new buyers, Bloomberg reports.
In the aftermath of the war, approximately two-thirds of Russia's crude customers suspended their purchases, with companies in the US, the UK, the European Union, and some in Asia ceasing to buy Russian oil. As a result, Russia became heavily reliant on just two countries, China and India, to maintain its oil exports, with smaller roles played by Turkey and Bulgaria.
Efforts to find new markets for Russian oil were mostly unsuccessful, with occasional shipments to Sri Lanka and sporadic cargoes reaching North African ports.
The dependence on only two major buyers during a period of abundant global oil supplies forced Russia to offer significant discounts compared to
23 RUSSIA Country Report October 2023 www.intellinews.com