• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 day Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 2 hours Greenpeace claims one oil rig is "pushing the world closer to a climate catastrophe"
  • 19 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 6 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 2 days As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 1 day The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 2 days Never Knew Gasoline Prices were this important!
  • 1 day Plants are Dying
  • 5 hours Emmissions up, renewables nowhere
  • 1 day We Are Better Than This
  • 3 hours Middle East on brink: Oil tankers attacked off Oman
  • 1 day (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
Alt Text

Who Is Winning The Offshore Solar Race?

Some of Asia’s biggest economic…

Alt Text

Is The Solar Industry Really In Trouble?

The trade war between China…

Alt Text

$200 Billion Saudi Solar Megaproject Might Never Happen

The $200-billion solar power project…

Gloria Gonzalez

Gloria Gonzalez

Gloria is a writer for Environmental Finance.Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance, investment…

More Info

Trending Discussions

Falling Demand in Europe for Solar Energy Systems

Conditions in the solar sector are deteriorating because of slack demand in key European markets, advisory and research firm Collins Stewart warned.

The much hoped for demand recovery in Germany has not occurred with the strength required to stabilise the market, analyst Dan Ries said after meeting with industry officials at the European Photovoltaic Industry Association (EPIA) conference in Hamburg this week.

German demand has been below expectations all year, but it was believed that the substantial module price declines that have occurred so far in 2011 – from about $1.70W to the $1.12-1.20/W range – would trigger a demand recovery, he said. But indications are that the poor macroeconomic environment, a diminished view of solar, a more challenging financing environment and buyers’ views that prices may be lower if they wait continues to hamper demand, Ries said. Collins Stewart now estimates that Germany may consume only 5GW of modules in calendar year 2011, down from 7.2GW in 2010.

Other European solar markets are also impacted by these factors, with construction said to be extremely difficult to arrange in Italy, the world’s second largest solar market at 4.5GW, Ries said.

Solar panels in Germany
Solar panels are everywhere in Germany, but demand in 2011 is sinking (Photocredit)

Germany and Italy are likely to start to start off very slow in 2012 due to feed-in tariff reductions at year end, he added.

Module demand is improving in China, the US and India, but these markets will collectively account for only about 4.3GW or 22% of worldwide demand, he said.

“They are unable to carry the load when the world’s two largest markets are below forecast,” Ries said.

Module prices are continuing to fall and the firm’s forecast of a $1.20/W average sales price (ASP) for the fourth quarter now looks like it may be $0.10/W too high, he said.

“Expectations will have to come down,” Ries said.

China is likely to outperform early demand expectations, but has seen ASPs deteriorate to below the $1.10/W level, which likely provides little to no profits for vendors, he noted.

Meanwhile, polysilicon prices have remained near $50/kg throughout the third quarter, meaning that manufacturers will not be able to reduce their costs significantly in the fourth quarter. Even if polysilicon prices fall sharply in the weeks ahead, companies would not be able to experience the full benefit until the first quarter of 2012 due to inventory levels, Ries said.

“Price declines will pressure margins in 4Q11,” he said. “Vendors of commodity items such as polysilicon, wafers and cells will be impacted more than module vendors, but all segments of the market will suffer due to the poor demand environment.”

But the EPIA put a positive spin on current market conditions.

“For investors interested in the promise of solar power, the time to act is now,” said EPIA president Ingmar Wilhelm. “The important declining costs, the validity of the ecological footprint and new innovative features are creating today’s ideal climate for investment in PV technology, which is on the way to becoming a fully competitive part of the electricity system in the European Union and an increasingly important part of the world’s energy future.”

By. Gloria Gonzalez

Source: Environmental-Finance




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News