Feed-in tariffs boost solar power across Europe

27 July 2008
Feed-in tariffs boost solar power across Europe

After years of being labeled a German phenomenon, the solar photovoltaic sector is building momentum across Europe, particularly in Spain. This development is catalyzed by newly adopted feed-in tariffs.

Photovoltaic (PV) development activity in Europe is booming and project size is scaling - causing shifts in competitive positioning along the project development value chain, says a recent study from Emerging Energy Research (EER).

Together Germany and Spain are setting the pace for PV development. Spain, Europe's fastest growing PV market, is forecasted to install 800 MW in 2008 and grow to 5.6 GW by 2012, according to EER.

With long-term and relatively stable incentive regimes in place, total installed grid-connected PV capacity in Germany and Spain amounted to 1,440 MW in 2007, accounting for 92% of the 1,562 MW installed in Europe.

Together, six countries--Germany, Spain, Italy, Greece, France, and Portugal--are expected to hold the lion's share of PV development activity over the coming years by adding 22 GW from 2008 through 2012.

But the establishment of high feed-in tariffs in emerging markets, including the Czech Republic, Bulgaria, and Switzerland has set off a wave of PV development activity.

Developers are now positioning for first-mover advantage to establish operations in these emerging PV markets, according to EER.

"The European solar PV market is becoming increasingly fragmented across the value chain from manufacturers to project owners with installers and developers operating in the continuum," says Reese Tisdale, EER senior analyst.

Emerging PV-based power producers range from leading renewables utilities to specialized solar PV plant owners looking to gain market share.

"As the industry landscape adapts to lucrative feed-in tariffs, new markets, and supply chain bottlenecks, participants are beginning to target segments along the value chain that can leverage their core capabilities in manufacturing, system integration, and project ownership," Tisdale says.

Source and more information:

Emerging Energy Research (EER)