Solar thermal reaches 12 087 MW in Europe

PARIS, France, November 1, 2006 (Refocus Weekly)

The solar thermal market in Europe is growing at 23% per year, and the continent has installed 2 million m2 of glazed, vacuum and unglazed collectors.

The capacity is equivalent to 1,451 MW of thermal energy, explains the latest ‘Solar Thermal Barometer’ produced by Observ’ER. The growth is due to “very good performance” of markets in Germany, Austria and Greece, plus the increased importance of markets in France and Spain.

“Solar thermal sector development conditions are rapidly changing right now; the continuous rise in energy prices, associated with support systems set up by most governments, is making it possible to consolidate solar thermal sector growth,” the report explains. The EU market installed 2,073,391 m2 last year. Flat glazed collectors account for 89.4% of the market followed by 6.4% for vacuum collectors.

Vacuum collectors are more expensive but provide higher temperatures, and the technology is adapted to cold climates for space and water heating, as well as for cooling in hot climates where systems demand very high temperatures. Unglazed collectors offer sufficiently high performances to heat swimming pools, and the report says this technology is more difficult to monitor for statistics because it is not always subsidized and, therefore, not referenced by financing organisations.

Germany installed nearly 1 million m2 and had domestic market growth of 25.6%. The German Association of Solar Industrialists (BSW) says 950,000 m2 of glazed collectors were installed last year (855,000 m2 of flat collectors and 95,000 m2 of vacuum), with another 30,000 m2 in unglazed collectors.

“The solar thermal sector's success is such this year that it has been problematic for the government’s financing of the ‘Marktanreizprogram’, an incentive system consisting of a federal aid of Euro110 per m2,” the report notes. “Even though these financial aids were suspended for the first two months of the year in progress, the financial resources planned for 2006 had already been used up by last August, with the number of requests at this date having already equalled the total for the whole of the year 2005. Yet, the government announced that the program initially envisaged until the end of 2006 would continue in 2007.”

Growth in the Austrian market was similar to Germany, with new installed capacity of 239,540 m2 (168 MW-th), allowing Austria to recover its second place position in the EU. Greece installed 220,500 m2 of collectors (154 MW-th) due in part to replacement of numerous thermosiphon systems damaged by high snowfall during the winter of 2003.

Installed solar thermal capacity in EU countries last year reached 17.3 million m2, representing 12,087 MW-th, but the estimate differs from the ESTIF because that professional group does not include unglazed collectors. Observ’ER assumes glazed collectors work for 20 years before decommissioning (15 years for systems installed prior to 1990) and 12 years for unglazed collectors, which are less resistant.

When calculated on per-capita terms, Cyprus is the lead country with 642 m2 per thousand inhabitants, followed by Austria (319 m2) and Greece (274 m2 per 1000 inhabitants). Germany is in fourth place (86 m2) and France in eleventh place (15 m2 per thousand inhabitants).

The German solar thermal industry had revenues of Euro 750 million last year, compared with Euro 600 million in 2004 and Euro 550 million in 2003. Forecasts for 2006 are Euro 1 billion, and the number of German jobs increased to 12,500 in 2005 from 10,000 in 2004. Austria had revenues of Euro 232 million last year with 3,300 jobs, while Greece had turnover of Euro 172 million and 2,450 jobs last year.

“The state of the solar thermal sector has never been more favourable,” the report concludes. “The traditional markets of Germany, Austria and Greece continue to be just as solid as ever, and the high potential markets like France and Spain are showing good development prospects, backed up by incentive legislation.”

“Double-digit growth observed in most of the other EU countries is also a very encouraging sign even if these markets are still far from being developed, but this optimistic view must not hide the fact that due to the slow-in-coming implication of most European governments, the White Paper objectives (100 million m2 at the end of 2010) shall not be reached in the set time limits,” it warns. “Taking the growth observed these last three years into consideration, we estimate total EU installed capacity at 32 million m2 in 2010 (equivalent to 22,499 MW-th), a bit less than one third of the European target.”

“The positive evolution that we are currently experiencing should not make us forget that solar thermal market potential has been barely touched upon as yet,” and the report encourages the EU to pass a GreenHeat directive.

The Barometer is prepared by Observ’ER in the scope of the EurObserv’ER project which groups Observ’ER, Eurec Agency, Erec, Eufores, Institut Jozef Stefan and Systèmes Solaires, with the participation of EC BREC and with the financial support of Ademe and DG Tren.


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