Europe increases Solar PV capacity to 1,793 MW

PARIS, France, April 26, 2006 (Refocus Weekly)

Luxembourg has the highest per-capita use of solar PV in Europe, at 51.5 watts per inhabitant, well ahead of the 18.6 W/pp in Germany.

All other countries in the EU-25 fell below the continental average of 3.9 watts per person, with the Netherlands rated at 3.1, Austria at 2.7 and Spain at 1.4 watts per capita, according to the latest ‘barometer’ prepared by Observ’ER. Cyprus was in sixth place at 0.8, Finland 0.8, Italy 0.6, France 0.5, Greece 0.5, Denmark 0.5, Sweden 0.4, Portugal 0.3, UK 0.2 and Belgium 0.2 watts per person.

“The European market showed all of its strength and soundness in 2005,” with 645 MW of solar cells installed versus the 546 MW installed in 2004, the report notes. The 18% growth “could have been even greater if the market had not been continually curbed by a lack of raw materials.”

Germany remained the leading PV market in the world, far ahead of Japan and the United States, with 603 MW installed, and the “unabashed success” in Germany has inspired Spain and Italy to set up conditions to develop their own solar sectors. Spain installed 20.2 MW last year, followed by 6.4 MW in France and 5 MW in Italy, with the top-five countries including the UK (2.5) and Austria (2.3 MW).

Cumulative PV capacity in the European Union reached 1,793.5 MW by the end of last year, of which 1,692.6 MW was on-grid and 100.9 MW was off. The top ten countries were Germany (1,508 MW on-grid, 29 MW off), Spain (42.5 - 15.2), Netherlands (46.3 - 4.9), Italy (23 - 13), France (13.8 - 18.9), Luxembourg (23.3 - 0), Austria (18.2 - 3.2), UK (9.8 - 0.9), Greece (1.4 - 4) and Sweden (0.3 MW on grid - 3.9 MW off).

“The EU photovoltaic market reached the limits of its supply capacities for the first time” in 2005 and PV companies could have produced “considerably more modules if it had not been for the present shortage of silicon,” the report explains. The 1,793.5 MWp of capacity is sufficient to supply power to 600,000 homes, and grid-connected applications (solar roofs, facades, power plants) now represent almost all of the EU market.

“The importance of the German market and the multiplicity of the power network operators make it difficult to provide precise figures for this sector,” and there is a dispute between production figures published by companies and the figures from the annual survey by Photon International magazine. The new German solar industry association (BSW-Bundesverband Solarwirtschaft which results from the merging of BSI and UVS) says the 2005 market is at least 600 MW while Photon magazine says it is 870 MW.

“The prospects for photovoltaic market growth are still as good as ever,” the report concludes. Silicon producers have responded to expectations of the PV industry by announcing new production capacities, and these extensions “have reassured the photovoltaic industry which, in turn, answered by heavily investing in new production capacities that are in phase with an ever bigger demand.”

“This increase in demand remains dependent on the political will to develop this market at the national level,” it cautions. “In Germany, the purchase price guaranteed until 2007 should make it possible to continue to maintain installations at a very high level and, taking the investments made by the German industry into consideration, it is more and more probable that an incentive system will be renewed after this.”

The Italian decision is good news and the situation in Spain is also very favourable, while France should become more comfortable in 2006 if the increase in the price of modules caused by the silicon shortage does not delay development of this market.

The barometer predicts that 6,000 MW will be installed by 2010, based on the German market conserving its capacity at 600 MW a year and on the goals for Italy and Spain being achieved. EPIA estimates that, if policies to support solar PV continue, the EU could reach 7000 MW by the end of this decade.

“Photovoltaic market evolution will therefore continue to be dependent upon political / policy decisions in the years to come but, to justify this support, the sector industrialists shall have to show their ability to reduce production costs,” it adds. “The objective is to come as close as possible to the cost of a fossil kilowatt-hour and that’s a price that’s constantly increasing.”

EurObserv’ER groups the Eurec Agency, Erec, Jozef Stefan Institute and Eufores to produce regular technology analyses, with financial support of Ademe and DG Tren programs in Europe.


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