Chinese integrated solar PV manufacturer Jolywood has decided to not go ahead with its planned 2.5 GW cell and module production plans in Indonesia citing reasons varying from COVID-19 to anti-circumvention investigation of the US and Ukraine war's impact.
For background, in 2021 Jolywood announced plans to launch a joint venture (JV) in Indonesia with PT Len Agra Energy for 1 GW solar cell and 1 GW module production capacity in the Southeast Asian nation. The target audience for the Indonesian products were domestic users and the US market (see Jolywood To Produce Solar Cells & Modules In Indonesia).
Now, a year later the Chinese company has reviewed the situation on ground and has decided to terminate the project entirely, including a 500 MW n-type high efficiency bifacial module project.
According to a stock exchange announcement, Jolywood blamed resurgence of COVID-19 pandemic in H2/2021 in Indonesia as one of the reasons for slow progress on the project. The Russian invasion of Ukraine has exacerbated global material shortages, poor supply chain scenarios and financial turmoil for the industry, as per the company.
It also refers to the US investigation into allegations of anti-circumvention duties on 4 Southeast Asian nations including Indonesia and 'other trade coercive measures against some photovoltaic manufacturers in Southeast Asia' as one of the reasons.
However, the US government recently gave a breather to the US developers and companies impacted by the investigation by providing a 24-month reprieve from the proposed tariffs (see Biden Saves The Day For US Solar Industry).
"Under the circumstances with major changes in the global photovoltaic supply chain and regional market environment, there is a considerable uncertainty about the company's overseas investment project construction cycle. After comprehensive communication and prudent decision-making, the company decided to terminate this overseas investment funding project," explained Jolywood.
None of the planned projects has entered construction since initially announced.
Speaking of Jolywood, the company continues to hold 2nd spot on TaiyangNews Top Solar Modules Listing with its TOPCon G12 wafer sized solar module sporting 22.53% efficiency and 700W output (see TOP Solar Modules Listing — May 2022). Its major expansion is taking place in China. In May 2021, it announced plans to build a new smart factory in China with an annual solar cell production capacity of 16 GW (see Jolywood To Expand Solar Cell Production By 16 GW).