• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 2 hours China's Blueprint For Global Power
  • 25 mins Bloomberg: shale slowing. Third wave of shale coming.
  • 13 mins ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 10 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 2 hours Brexit agreement
  • 11 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 14 hours the future
  • 16 hours Crazy Stories From Round The World
  • 11 hours 5 Tweets That Change The World?
  • 2 hours Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
  • 16 hours Climate Protesters Blocking Roads etc...
  • 10 hours USA Carried Out Secret Cyber Strike On Iran In Wake Of Saudi Oil Attack
  • 11 hours Leftists crying to make oil patch illegal friendly: 'Broken system' starves U.S. oil boom of immigrant workers: CONGRESS DO YOUR JOBS INSTEAD OF PANDERING!
Alt Text

How The Sahara Desert Can Power The Entire World

Theoretically, solar energy generated in…

Alt Text

24/7 Power: The Future Of Solar

Researchers from Curtin University in…

Alt Text

Tesla Starts Price War In Solar Panel Market

Tesla will cut the prices…

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

Premium Content

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



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play