Daily Management Review

Boom in Solar PV Market Transforming the World Energy


Global energy market is experiensing dramatic shift from fossil fuels to renewable sources

World Solar Industry is undergoing a remarkable transformation due to rapid shift of consumer base from the traditional markets. The year 2014 was marked by challenges for world solar industry, yet it witnessed an expansion in its market. The demand volume surged at a rapid speed recording a double digit growth, contributed by the policy in Japan and China. All these signs indicate towards strong recovery of solar industry in 2015. According to IHS, more than 40 countries across the globe will install new solar PV capacity of at least 100 MW in 2015.

2014 witnessed a dramatic transition that reshaped its demand landscape with China’s installation of solar capacity surpassing that of entire Europe. Other changes included robust growth in Japan led by generous incentives, continuous developments in the US market and slow but steady rise in demands from developing nations. According to IHS predictions, installation demand in the worldwide solar market will record a significant growth of 16-25% in 2015. The largest solar markets are likely to be China, Japan and the US, while major contributions is likely to come from China, the US and India, driven by persistent cost reduction in solar.

China & Japan accounts for nearly 50% of the world solar PV market. China’s solar industry installations are expected to reach the high mark of above 30 GW in 2015, as compared to 12.5 GW in 2014. The target is mainly driven by the need to decrease pollution from fossil fuel generation and the ever-rising demand for energy across the nation. Meanwhile, Japan’s surging growth in solar capacity is forecasted to attain 100 GW by 2030. As a result there is a rampant rise in acquisition activities by Japanese companies. On 10th March 2015, world’s largest solar energy solutions company, Solar Frontier, announced about its agreement to acquire from Gestamp Solar, its solar power project pipeline of 280 MW.

With a highly significant growth rate of 36%, the US will reach the mark of one million solar PV installation in 2015 as stated in a report by the Solar Energy Industries Association and GTM ResearchUS president, Barrack Obama led by pro-green energy agenda, is emphasizing on reduction of greenhouse gas emissions. This emphasis along with lower PV prices is serving as a catalyst for the US solar industry growth. However, India is planning to increase its solar power capacity from 2 GW to 20 GW in short to medium term. Even markets like Africa are attracting solar to shore up its not so stable grid connection.

Deutsche Bank says that global solar energy market will expand massively to the size of $5 trillion by 2030 and thereby dominate the worldwide energy market. With a significant jump in solar’s share of world electricity market, the international solar market will rise 10 times. Solar projects in developing countries are expected to trend upwards, mainly led by reduction in solar technology costs, persistent drive for electrification in emerging nations and rising consumer demand for clean technologies. However, policies in matured markets of Europe and the UK are hindering growth of solar market.

Tags : Solar Energy