Shanghai Electric to exit solar energy business

SHANGHAI: Despite the hype given to solar energy development, Shanghai Electric Group, China's largest power generating equipment maker, has remained steadfast in getting out of the sector, which it deems as unprofitable, at least in the short-term.

The sale of its 35 percent stake in solar energy equipment maker Shanghai Topsolar Green Energy for 138.6 million yuan fell through last week because the buyer was said to have defaulted on payment. Fu Rong, Shanghai Electric's board secretary, said in a written reply that her company hasn't made a firm decision on what to do next with the unsold stake in Shanghai Topsolar.

But she had said earlier that the disposal of the company's investment in solar energy was essential because the company couldn't find a way to incorporate it into its future development plans. She was echoing the lines of Shanghai Electric's chairman Xu Jianguo, who said that he couldn't see a profitable future for solar energy despite official efforts to promote the sector as an alternative energy source to supplement fossil fuel.