News Article
Sunny Growth Eclipsed By Financial Crisis
According to a new report the PV market has been hit hard by global factors
Research Analysts' new report, 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 new 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.
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 new 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.
