Daily Management Review

Global PV Installation Market Is ‘Now Back On A Strong Growth Trajectory’


‘2018’s slowdown was just a blip’, as world’s solar installation market is set to make record.

Last week, the Wood Mackenzie consultancy informed that thanks to the improvement seen in the European as well as the American markets besides the fast growth observed in Indian as well as Vietnamese markets, the figures for PV, photovoltaic solar panel, installations are about to “reach a record high”.
Furthermore, there are expectations that the low bidding price will also contribute in favour of “new solar PV capacity by the end of this year to 114.5 gigawatts”, which means it will see “17.5% higher” boost in comparison to its 2018’s figures, while it is also noted that for the first time ever the “new installations have exceeded 100 GW”.
In fact, last year, the new capacity slipped down a little which was mostly caused by “a slowdown” in China, the latter being “the world’s largest solar PV market”. Nevertheless, the same “ended feed-in tariff subsidies for new projects”. The report of Wood Mackenzie analysts stated:
“The market is now back on a strong growth trajectory – 2018’s slowdown was just a blip and we expect annual installations to rise to around 125 GW per year by the early 2020s”.
The Europe will remain at the helm of this year’s growth forecast while “Spain, the United States, India, Vietnam”, Egypt and the UAE will be notable contributors. Installing “between 1-5 GW” on a yearly basis will make a country the driver of growth. The report also names seven markets which were the growth drivers last year, while it mentioned that by 2022, we can expect nineteen such countries on board “including France, Saudi Arabia and Taiwan”.
Eve though, Chinese market continues to experience a slowdown, the global market for PV installation sees an increment as priorities are being set on “renewable projects” capable of operating “without subsidies after a rapid fall in manufacturing costs”. The installations peak was observed in 2017, while by 2024, “China, India and the United States” are likely to account for over 50% of “total solar PV installations”.
In the words of Tom Heggarty, a Senior Solar Analyst at Wood Mackenzie:
“Auctions will be really important in driving growth, particularly in emerging markets”.
According to Reuters:
“A record-low price for solar generation of $16.95 per megawatt hour was set in a Brazilian auction in June and results of the second round of a Saudi Arabia auction should be released later in the year which are expected to be very low also, Heggarty added”.