Global Market Review of Solar Photovoltaic Power Generation

• Publication date: March 2009

Despite early market growth predictions, the global financial crisis has cast a shadow over the solar power sector. The Global Market Review of Solar Photovoltaic Power Generation predicts an eventful few years in this sector of the renewable energy industry. While generating capacity will increase, there is some uncertainty in the industry regarding the pace of growth. What is clear, though, is that solar power investments will be affected by th...

Despite early market growth predictions, the global financial crisis has cast a shadow over the solar power sector. The Global Market Review of Solar Photovoltaic Power Generation predicts an eventful few years in this sector of the renewable energy industry. While generating capacity will increase, there is some uncertainty in the industry regarding the pace of growth. What is clear, though, is that solar power investments will be affected by the cost and availability of financing. The current crisis is impacting the short-term availability of finance with a knock-on effect on demand for photovoltaic power. Consequently, the established market leaders are restructuring their capital expenditure and optimising credit facilities. Meanwhile, a number of players from other industrial sectors are entering the solar industry, including Intel, GE, Hewlett Packard, Samsung, LG and Bosch.

As the market continues to grow - albeit at a slightly slower pace than in recent years -- cost reductions will be achieved through improvements in technology, economies of scale and increased efficiency in all parts of the value chain. The report shows the ways in which the major players are preparing to extend their global reach by looking at other countries to establish operations beyond the main photovoltaic markets in Germany, Spain, Japan and California. Yet the solar photovoltaic power industry still faces a number of challenges. Solar energy is unable to compete with fossil-based energy sources. One of the key issues for the photovoltaic market is therefore to match the price of photovoltaic energy to traditional sources within the next few years. The report shows how grid parity will be reached progressively from 2010 onwards in several European countries; Italy will blaze the trail, closely followed by Spain and then Germany.

Chapter 1 reviews solar power as an alternative source of energy, defining the elements, benefits and challenges facing the industry. Solar power is one of the cleanest electric generation sources, capable of generating electricity without air or water emissions, noise, vibration, habitat impact or waste generation. Chapter 2 considers the market for solar photovoltaic power, defining the key processes and issues. Photovoltaic technology, such as thin film solar panels, converts sunlight into electricity. Growing concern for the climate and the need for additional energy sources have made governments around the world take measures to support investments in and use of renewable energy.

Chapter 3 considers the various market incentives and political influences. It also reviews the current market opportunities and predictions for solar photovoltaic power generation over the next few years alongside the challenges and threats the industry is facing.

Chapter 4 considers the current status and prospects of the major national solar markets, namely Germany, Spain, Japan, US, Italy, France, South Korea and India. Chapter 5 addresses a number of issues facing the solar photovoltaic market. The solar photovoltaic market is one of fastest growing markets in the renewable energy sector. Over the next decade or so, photovoltaics is on course to become more and more cost competitive due to lower production costs and long term stable technical systems.

Chapter 6 profiles the major manufacturers of solar cells and modules, namely: Ascent Solar; Evergreen Solar Inc; First Solar; Kyocera Corporation; Mitsubishi Electric; Motech Industries; Q-Cells AG; Renewable Energy Corporation; Sanyo Electric; Sharp Corporation; SolarWorld AG; SunLink Corporation; Sunpower Corporation; Suntech Power; and United Solar.

The technologies mentioned in this report include:
-Amorphous silicon (a-Si)
-Cadmium telluride (CdTe)
-Copper indium diselenide (CIS, CIGS)
-Crystalline silicon
-Feedstock
-Heterojunction with Intrinsic Thin-layer
-Ingots
-Monocrystalline silicon
-Mounting structures
-Multicrystalline silicon
-Multicrystalline thin film
-Photovoltaic cell
-Photovoltaic module
-Photovoltaic system
-Polysilicon
-Power generators
-Silicon
-Silicon wafer
-Solar collector
-Solar panel
-Storage batteries
-Thin film solar technology
-Wafers

The companies mentioned in this report include:
-Akeena Solar Inc
-Ascent Solar
-Asia Silicon Co Ltd
-AVANCIS GmbH
-Bosch
-BP
-Comision Nacional de Energia
-DC Chemical & Co
-Ecole Polytechnique Fédérale de Lausanne
-Enel SpA
-Energy Conversion Devices Inc
-E.ON
-Ersol Solar Energy AG
-Ersol Thin Film GmbH
-Evergreen Solar Inc
-EverQ
-First Solar
-Fraunhofer-ISE
-Gestori del Servici Elettrici
-Global Solar Energy Inc
-Greenpeace International
-Helio Volt Corp
-Honda Soltec Co Ltd
-Icopal SAS
-International Electrotechnical Commission
-Itochu Corp
-Konarka Technologies
-KSL-Kuttler Automation Systems GmbH
-Kyocera Corporation
-Kyocera Solar Europe SRO
-Los Angeles Southwest College
-MiaSole
-Mitsubishi Electric
-Motech Industries
-NanoSolar Inc
-Nippon Oil Corp
-Nitol Solar
-Norsk Hydro
-NREL
-Photovoltaic Technology Platform
-PowerLight Corp
-Q-Cells AG
-Renewable Energy Corp
-Sanyo Electric
-Sanyo Solar
-Schott AG
-Schuco International KG
-Sharp Corp
-Shell
-Silicium de Provence SAS
-SMA Technology AG
-Solaricos Trading Ltd
-SolarPark Engineering Co Ltd
-SolarWorld AG
-Solutia Inc
-Sovello
-SunLink Corp
-Sunpower Corp
-Suntech Power
-Turner Renewable Energy LLC
-United Solar Ovonic
-Wacker Chemie AG
-Wurth Solar GmbH
-Xinyl Glass

Renewable Energy Industry

List of tables

List of figures

Preface

Executive Summary

1: Solar power: a bright future

Why solar power?
Solar conversion process
Defining the elements
Solar power benefits
Challenges facing the solar power industry
Solar power industry value chain

2: Market overview

Why solar photovoltaic power?
Defining the elements
Manufacturing process
Product lifetime issues

3: Market analyses

Market incentives and political influences for Solar Photovoltaic Power Generation
Market competition for Solar Photovoltaic Power Generation
Recent technical advances for Solar Photovoltaic Power Generation
Market opportunities and forecasts for Solar Photovoltaic Power Generation
Market challenges and threats for Solar Photovoltaic (PV) Power Generation

4: National markets

Major national solar markets:
Germany, Solar Markets:
present
future
Spain, Solar Markets:
present
future
Japan, Solar Markets:
present
future
United States, Solar Markets:
present
future
Other key national solar markets:
France, Solar Markets
India, Solar Markets
Italy, Solar Markets
South Korea, Solar Markets
Case studies:
"Supplying solar photovoltaic electricity generating systems to developing countries"
"First Solar power plant for the Papal State"

5: Market prospects

What are the prospects for the solar PV module market?
When will grid parity in Europe be achieved?
What will be the impact on the solar energy market of the change in subsidy policies?
What will be the impact on the solar PV following the expansion of incentive policy-oriented leadership?
What are the opportunities for the glass industry?
What is the long-term challenge of the solar energy sector?
What will be the impact of the current global financial crisis?

6: Major manufacturers of solar cells and modules

Ascent Solar
Bosch
Evergreen Solar Inc
First Solar
Kyocera Corporation
Mitsubishi Electric
Motech Industries
Q-Cells AG
Renewable Energy Corporation
Sanyo Electric
Sharp Corporation
SolarWorld AG
SunLink Corporation
Sunpower Corporation
Suntech Power
United Solar

Glossary of terms

List of tables

Table 1: Technologies used in the solar power industry
Table 2: Historical development of cumulative installed global and EU photovoltaic capacity, 1998 - 2007, MWp
Table 3: Global annual market (MWp) and annual growth rate of photovoltaic industry in main markets, 2006 - 2012
Table 4: Global cumulative photovoltaic capacity assuming a pessimistic-driven scenario, 2001 - 2012, GWp
Table 5: Pessimistic market forecast for the major global photovoltaic markets, Germany, Spain, Italy, Greece, France, Portugal, US, China, Japan, South Korea, India and the Rest of the World, 2006 - 2012, MWp
Table 6: Policy-driven market forecast for the major global photovoltaic markets, Germany, Spain, Italy, Greece, France, Portugal, US, China, Japan, South Korea, India and the Rest of the World, 2006 - 2012, MWp
Table 7: Mitsubishi Electric's current and projected growth of annual production capacity for photovoltaic cells and modules, 2003 - 2012, MW
Table 8: Sanyo's solar production capacity, 2007 - 2009
Table 9: Q-Cells key figures, 2002 - 2007
Table 10: Sharp Corp's cumulative solar cell production volume, 1998 – 2007

List of figures

Figure 1: The roof of the Stillwell Avenue Metro Station in New York is home to the world's largest building-integrated solar plant with thin film modules
Figure 2: A photovoltaic unit from RWE Schott Solar on the roof of a single-family house
In 2008, Europe's first commercial solar thermal parabolic trough power plant went on-stream near Granada, Spain
Figure 3: Europe's first Plus Energy housing estate in Weiz, Austria runs on solar technology from Schott
Figure 4: Ersol Solar Energy AG's manufacturing capacity in Arnstadt, Germany is being extended