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Analyst Buzz<br />

Analyst Buzz Title<br />

<strong>Solar</strong> PV demand to reach 31<br />

GW in 2013, according to NPD<br />

<strong>Solar</strong>buzz<br />

<strong>Solar</strong> photovoltaic (PV) demand will<br />

increase two gigawatts (GW), from 29<br />

GW to 31 GW during 2013, up 7 percent<br />

Y/Y according to <strong>the</strong> new NPD <strong>Solar</strong>buzz<br />

Marketbuzz 2013. For <strong>the</strong> first time, China<br />

will outpace Germany to become <strong>the</strong><br />

leading PV consumer, while <strong>the</strong> top 10 PV<br />

territories will still account for 83 percent<br />

of global PV demand.<br />

“2013 will represent ano<strong>the</strong>r transition<br />

year, as <strong>the</strong> PV industry adjusts to softness<br />

across legacy European markets,” according<br />

to Michael Barker, senior analyst at NPD<br />

<strong>Solar</strong>buzz. “The Chinese end-market will<br />

largely compensate for <strong>the</strong> downturn in<br />

demand from Germany, which previously<br />

led PV demand.”<br />

<strong>Global</strong> Shift in PV Demand<br />

Due to fur<strong>the</strong>r reductions in European<br />

premium incentives, demand in this region<br />

will fall to approximately 12 GW, which is<br />

a 26 percent Y/Y decline. In contrast, new<br />

policies across leading PV countries in <strong>the</strong><br />

Asia-Pacific (APAC) region, led by China,<br />

Japan, and India, will stimulate regional<br />

growth of over 50 percent and account for<br />

more than 11 GW of PV demand in 2013.<br />

“In 2013, we expect to see improvement<br />

in <strong>the</strong> market fundamentals that<br />

enable PV demand to return to doubledigit<br />

growth,” Barker said. “Installedsystem<br />

prices will continue to fall, and PV<br />

will become increasingly cost competitive<br />

across regions with high electricity rates,<br />

shortages in domestic supply, and growing<br />

renewable obligations to fulfill.”<br />

According to <strong>the</strong> NPD <strong>Solar</strong>buzz report,<br />

new PV opportunities from <strong>the</strong> Middle<br />

East, Africa, Latin America, Sou<strong>the</strong>ast Asia,<br />

<strong>the</strong> Caribbean, and o<strong>the</strong>r emerging regions<br />

will have a stronger impact on global<br />

demand from 2014 onwards. Emerging<br />

regions are forecast to account for less<br />

than 8% of global demand during 2013;<br />

however, this market share is expected to<br />

double by 2017, driven primarily by South<br />

Africa, Saudi Arabia, Thailand, Israel, and<br />

Mexico.<br />

Fragmentation of <strong>the</strong> Supply Chain<br />

Fur<strong>the</strong>r fragmentation of <strong>the</strong> supply<br />

chain for PV modules and balance-ofsystems<br />

components is expected across a<br />

range of addressable markets due to shifts<br />

in geographic access, new and ongoing<br />

import trade barriers, and changes in PV<br />

application segments.<br />

“<strong>Global</strong> trade wars and excessive local<br />

manufacturing capacity levels will create<br />

micro-environments for PV supply and<br />

demand, with each PV supplier serving<br />

only a subset of <strong>the</strong> 31 GW demand total,”<br />

Barker said.<br />

Ground-Mount Installations Dominate<br />

Ground-mount installations will dominate<br />

<strong>the</strong> market in 2013 with 45% of PV<br />

demand. These installations are being<br />

driven by policies that favor utility-based<br />

deployment. Strongly influenced by Japan,<br />

Germany, Australia, Italy, and <strong>the</strong> UK,<br />

overall market share for residential PV in<br />

2013 will remain above 20%. These five<br />

countries will account for three-quarters<br />

of all residential PV installations this year,<br />

which highlights a broad geographic pull<br />

and emphasizes <strong>the</strong> continued importance<br />

of distributed generation.<br />

Geographic Breakdown of <strong>Global</strong> PV Demand in 2013<br />

Source: NPD <strong>Solar</strong>buzz Marketbuzz 2013<br />

<strong>Solar</strong> energy causes<br />

revolution in Dutch electricity<br />

market<br />

The growth of solar energy has had a much<br />

greater impact on <strong>the</strong> Dutch energy infrastructure<br />

than was previously expected and<br />

taken into account. As solar panels look set<br />

to supply a much greater share of domestic<br />

electricity needs in <strong>the</strong> future, gas and coal<br />

plants are growing increasingly unprofitable,<br />

and energy utilities are having to<br />

find new solutions for energy storage and<br />

smart-grid development.<br />

According to experts, <strong>the</strong> growth in<br />

market share of solar energy could amount<br />

to much more than <strong>the</strong> 4000 MW that<br />

<strong>the</strong> companies and organizations united<br />

under <strong>the</strong> Dutch National <strong>Solar</strong> Energy<br />

Action Committee predicted for 2020.<br />

This projection was based on an annual<br />

growth of 25 per cent. Last year alone, <strong>the</strong><br />

growth of <strong>the</strong> number of solar installations<br />

in <strong>the</strong> Ne<strong>the</strong>rlands amounted to more<br />

than 200 per cent. If annual growth turns<br />

www.globalsolartechnology.com<br />

<strong>Global</strong> <strong>Solar</strong> & Alternative Energies – May/June 2013 – 31

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