WORLD SOLAR IN TRANSITION

Transition Phase Occurring For European Photovoltaic Markets
15 June 2010 (Solar Industry)

"The period from 2010 to 2012 is shaping up to be one of significant transformation for the European photovoltaic industry as it confronts regulatory incentive revisions, expanding market development opportunities and scaling competition from better financed and more robust power players, according to a new report from IHS Emerging Energy Research.

"Europe PV markets are forecasted to add as much as 15.5 GW from 2010 to 2012 at an average of 5 GW per year. In the longer term, the PV sector in Europe is expected to maintain its growth trajectory from an expected 6.3 GW in 2010 toward 101 GW of installed capacity by 2025…"

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"Considered the epicenter of the global PV industry, the German PV market faces significant changes in the coming months due to proposed revisions to FITs expected to be enacted by the end of 2010…As a result, German PV development is surging ahead of the proposed tariff reductions…[Germany’s] reduced FIT rates will force players to further reduce system costs. Other markets, such as Italy, Spain and the Czech Republic, are poised to follow suit with expansive tariff revisions planned for this year.

"Despite tariff revisions, Germany will continue to dominate global PV build-out, and continued development in Italy, France and Belgium also will be pivotal in driving the industry forward…Scaling PV activity in European markets outside of Germany has propelled a new group of utilities and power players into the industry forefront. Leading utilities and renewable players Electricite de France and Enel are at the forefront of large-scale PV deployment, particularly in France and Italy…[positioning] them for broader international competition."

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"As competition increases in the downstream development segment, a growing number of international suppliers are challenging the more entrenched European companies…[especially] the rising presence of lower-cost Asian manufacturers…[Also,] the recent oversupply of the global PV module market, technology and manufacturing improvements, and economies of scale has led to a dramatic reduction in solar PV system costs in 2009 and 2010…

"Through the first quarter this year, eight of Europe's top 15 module suppliers in Europe are Asia-based - highlighting a shift toward a more global supply chain from the more entrenched German suppliers…"