Europe Outshines World in Solar Power

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Europe continues to dominate the world's growing solar photovoltaic (PV) market, accounting for two thirds of all new solar capacity installed during 2011.

Europe saw 18,500-megawatts (MW) of new solar capacity installed last year, bringing its PV total to 52,000 MW. Comprehensive figures from the European Commission's (E.C.'s) Joint Research Centre (JRC) show that over the past 10 years, the PV industry in Europe has grown by an average of over 40% per year while production costs have decreased by around 60%. The 2012 Photovoltaics Status Report study shows that Germany, Italy, Spain, the Czech Republic, France, Belgium, and the United Kingdom (U.K.) are the leaders in installed PV capacity in Europe.

The JRC found that, for the second year in a row, solar power was the renewable energy that attracted most investment, with a total of €98.5 billion ($128 billion) worldwide, of which two thirds was concentrated in Europe.

"Photovoltaics is a key technology option to realise the shift to a decarbonised energy supply," said Arnulf Jäger-Waldau, with the Joint Research Centre's Renewable Energy Unit. "Regardless for what reasons, and how fast the oil price and energy prices increase in the future, photovoltaics and other renewable energies are the only ones to offer a reduction of prices, rather than an increase in the future."

He added: "The consequences of the nuclear accident which took place in Fukushima in March 2011, was a shift in energy investments toward more renewables and photovoltaic systems. In 2011, solar energy attracted 48.5% of all new renewable energy investments or $128 billion (€98.5 billion). Investments in distributed photovoltaic energy systems increased to over $71 billion (€54.6 billion)."

Europe may lead the world today but it's position is under threat, especially from China, where the JRC noted that China's massive investment in PV manufacturing has led to an economy of scale in manufacturing. The study shows that most rapid growth in annual production over the last five years was observed in Asia, where China alone accounts for more than 50% of the world's PV production.

Earlier this month, the European Commission announced it was launching the largest ever anti-dumping investigation over allegations that Chinese solar panel firms are importing panels and components into the European market at below cost prices. U.S. authorities carried out a similar investigation against Chinese solar firms and imposed severe anti-dumping duties on the Chinese industry earlier this year. For additional information, see May 30, 2011, article - European Anti-Dumping Probe into Chinese Solar Firms.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.