German solar companies glowing despite Spanish woes

FRANKFURT, Aug 14 (Reuters) - German solar power companies
cast a sunny outlook for the second half of the year despite
slower growth expectations for the key Spanish market, and some
lifted their guidance.

 Phoenix Solar AG (PS4G.DE: Quote, Profile, Research, Stock Buzz), which plans, builds and operates
large photovoltaic plants, said it may exceed its current 2008
targets as it expects strong demand in Germany in the second
half of 2008 and a weaker business in Spain.

 "Owing to new legislation not yet passed in Spain on feed-in
tariffs and compensation for photovoltaic electricity, the board
of directors is expecting the market to slow in the Iberian
peninsula," the company said.

 Strong order intake in the first half of the year and solid
earnings also supported its optimistic outlook. 

 SolarWorld (SWVG.DE: Quote, Profile, Research, Stock Buzz), which makes everything from
solar-grade silicon to solar panels, said it expected to beat
its full-year forecast after it almost doubled consolidated net
income in the second quarter to 52.4 million euros ($78.12
million).

 The world's largest solar cell maker, Q-Cells (QCEG.DE: Quote, Profile, Research, Stock Buzz), had
raised its guidance on Wednesday on the back of strong order
intake and solid raw material supply, sending its shares higher.

 "The market expectation that a single country and its
regulatory outlook is going to lead to a doomsday scenario may
overstate the overall outlook," said Rupesh Madlani, analyst at
Lehman Brothers.

 "There are other countries that offer good prospects for the
solar industry," he added.

 These countries include the United States, Italy, Greece and
France as well as Germany.

 Solar cell maker Ersol (ES6G.DE: Quote, Profile, Research, Stock Buzz), now owned by Robert Bosch
[ROBG.UL], the world's biggest automotive supplier, made 26.6
percent of its first-half consolidated sales in Asia and 27.4
percent in Germany. 

 Its first-half sales rose 86 percent to 129.9 million euros
and it confirmed its outlook, but said it was anticipating even
greater profitability in the last two quarters of 2008.

 Ersol shares were trading flat at 101.15 euros at 1123 GMT,
while Phoenix Solar shares rose 2.7 percent and SolarWorld stock
dipped 0.6 percent. 

 Germany's technology index .TECDAX rose 0.5 percent.

 Shares in German wind turbine maker REpower (RPWGn.DE: Quote, Profile, Research, Stock Buzz),
controlled by India's Suzlon Energy Ltd (SUZL.BO: Quote, Profile, Research, Stock Buzz), inched up 0.5
percent after it reported solid first-quarter results and
confirmed its guidance.

 Local rival Nordex (NDXGk.DE: Quote, Profile, Research, Stock Buzz), due to report on Aug. 21,
lowered its outlook last month as it struggled to boost its
business abroad.

 Vestas (VWS.CO: Quote, Profile, Research, Stock Buzz), the world's No.1 wind-turbine maker, will
give an earnings update on Friday.

http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSLE54931620080814

I know its not directly related to APV but the general industry seems bullish on the long run making investments

such as APV very lucrative in a market like this. There is nothing

but growth in the forecast for renewable and environmentally

friendly technologies in the market and I fully expect Higher 

ROI's from APV than in resource and miners