Solar Power Growth Strong to 2015

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Solar power is 'well on its way' to becoming an important contributor to Europe's energy mix in the coming years, according to the latest outlook from the European Photovoltaic Industry Association (EPIA).

However, while the indications look good in the long term, the two most active European markets for solar photovoltaic (PV) power installations in 2010--Germany and Italy--have already cut, or are planning to cut, their generous feed-in-tariff (FiT) schemes. Without these schemes, Europe's rapid solar power growth is expected to slow down and new countries will have to emerge as European solar champions.

The Global Market Outlook until 2015 report indicates that the global photovoltaic market reached a cumulative installed capacity of some 40,000 megawatss (MW), with 16,600 MW of that installed in 2010. In 2009, new installations accounted for 7,200 MW.

According to the EPIA, the figures show that solar PV power was the leading renewable energy technology in terms of new capacity growth in Europe last year. Looking ahead, the global solar capacity figure is expected to reach 130,000-200,000 MW in the next four years. Outside the European Union (E.U.) only Japan and the U.S. have more than 1,000 MW of installed PV capacity, but China is expected to reach that threshold quickly.

"The numbers reveal the outstanding potential of PV to make major contributions to the energy landscape of the future," explained Ingmar Wilhelm, president of EPIA. "The currently installed global PV capacity produces power equivalent to the entire electricity consumption of countries like Greece, Romania or Switzerland."

Europe still accounts for the lion's share of the global market, with total capacity topping 28,000 MW in 2010. Almost 13,000 MW of that was installed in 2010, a growth rate of 47%. Germany is still by far Europe's largest solar nation, installing 7,400 MW in 2010, well over half of the European total. Italy came to the fore last year, installing 2,300 MW, but recent changes there mean that Italy's position as one Europe's shining lights for solar could be coming to an end.

Last month, the Italian government revealed draft plans to scrap the current feed-in tariff this summer, even though the scheme was due to run another two years. Although the cut-off date has been recently postponed from June for three months, the government still plans to scrap the solar tariff completely by 2017. For additional information, see May 3, 2011, article - Italy Lets Solar Power Subsidies Shine a Little Longer.

In January 2010, Germany's government proposed a 15% cut in its FiT, with further cuts coming to play this year and going forward, while in France the FiT for rooftop systems was cut by almost a quarter. For additional information, see January 17, 2010, article - France and Germany Cutting Solar Subsidies.

Commenting on the importance of future government support, Wilhelm said: "The evolution of the PV market in recent years has been heavily linked to the confidence and vision of smart policy makers in supporting the development of the technology. Adequate support policies that have been driving the markets so far, such as the Feed-in Tariffs, must continue and be ever brought in tune with the declining cost curve of PV."

New countries coming to the fore in the European solar landscape include the Czech Republic, which added an unprecedented 1,500 MW in 2010, but that is not expected to continue through 2011. France's solar total now stands at over 700 MW installed for 2010, while Spain installed 370 MW, following two years of extreme subsidy caps.

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