Solar Capacity To Double Next Year
With higher demand for clean energy by the US and China, new solar power generation is expected to double next year providing a firm that indication to a recovery from low capacity utilization caused by the global financial crisis, said Thiemo Lang, Portfolio Manager of SAM Smart Energy Fund (230 Million Euros (or $324 Million)), as reported by Bloomberg on July 17, 2009.
According to Nomura Securities, new investments in alternate energy are expected to rise to $450 Billion by 2012 from $150 Billion in 2007 on account of steps taken by the US and Europe to reduce greenhouse gas emissions. China will also increase its solar energy generation capacity from the current level of 1.8 Gigawatts to 10 Gigawatts by 2020, said the Chinese Renewable Energy Industries Association.
Fund Manager further said - Trina Solar Ltd., Suntech Power Holdings Co. and Canadian Solar Inc. have been leading the Asian alternate energy production ventures and will take the total production capacity to 10 Gigawatts by 2010 from an estimated 6 Gigawatts this year.
The solar energy market is unlikely to see significant growth in capacity this year because of the ongoing financial crisis but 2010 will surely be much better for the industry as two new regions China and the US will increase their demand for clean energy.
Asian solar companies, Suntech (world's largest solar-power modules manufacturer) and Trina Solar, will have an edge over their European and US counterparts in terms of lower production cost that make them more popular across the world.
According to an industry report "Global Photovoltaic Market Forecast to 2013" by RNCOS, soaring demand for PV system installations has given impetus to the development of solar cell manufacturing worldwide. In this regard, countries in the Asia-Pacific region, such as China and Taiwan, have gained significant traction in recent years.
Further, Asian solar panel manufacturers are selling most of their stocks while European suppliers are still holding nearly half of their inventory.
According to a Research Analyst at RNCOS, "China is giving priority to renewable energy production as a part of its incentive to boost economy, and the investments are likely to rise in future. The US also represents an important market for commercial segment with increasing production and capacity."
