Japan's conventional solar stock tumbles after Takaichi victory

After a party vote that positioned Sanae Takaichi as the next Prime Minister, shares of the Japanese renewable energy company Renova fell more than 11% Monday.

The sudden drop was a result of speculation that the Liberal Democratic Party's (LDP) new leader, the former minister for economic security and internal affairs, could have a negative impact on large solar businesses. She has previously been skeptical about big solar projects.

Takaichi called for a limit on large solar projects. Many panels are manufactured overseas, particularly in China. Mega-solar installations can damage Japan's natural environment and scenery.

Renova shares fell 11.34% to 844 yen at 0545 GMT. West Holdings shares, which are listed on the standard market and manufacture solar panels, have also fallen by more than 11%.

Takaichi also expressed his support for the promotion of perovskite, a new-generation technology that was developed in Japan.

A strategist from a Japanese investment firm said that perovskite panels are more cost-effective and environmentally-friendly than conventional silicon-based solar cells.

The strategist said that Takaichi’s victory creates headwinds for conventional companies in the solar industry, but optimism for those linked to perovskite technologies.

Sekisui Chemical shares, which are involved in the development of perovskite, and K&O Energy Group (a materials supplier) both increased by more than 7%.

Investors bet on Takaichi’s strong support of nuclear energy, and shares in Japan Steel Works rose by 14.63%. Reporting by Yuka Obaashi and Mayu Sakota; editing by Jamie Freeda

(source: Reuters)