Despite a number of challenges, the CPV industry could emerge as one of the renewable energy stars of the second decade of the 21st century, according to the newly released CPV Industry Growth Forecast & Strategic Landscape report.
For an emerging technology like CPV, the last couple of years have proved to be an eventful period. A period in which a spate of CPV companies have introduced their prototype and commercial projects.
There is no doubt over the fact that the industry is on the brink of growth. At the same time it is hindered by a number of internal and external technological and financial constraints. But then, traditionally, PV technologies have taken several years before showing scalable industrial success. And CPV, too, being an emerging technology with few commercial projects on the ground and starting to move towards commercial implementation, needs time to establish itself.
There is no dearth of optimism as far as the CPV industry is concerned, according to London-based CPV Today Business Intelligence, which has released its new report CPV Industry Growth Forecast & Strategic Landscape.
The report indicates that the industry is poised for a period of expansion, with orders being placed for large projects in Australia. Spain, Italy and Greece are all ramping up for commercial scale installations over the coming year and the US, where the majority of CPV companies are based, will benefit from the stimulus package offered by the Obama administration.
The supply base is well positioned to service increased levels of demand for components and equipment to manufacture CPV systems and R&D projects designed to improve reliability and enhance performance are leading to decent progress.
“Our research shows CPV is a confident, technology-led industry which could, with the right incentives, emerge as one of the renewable energy stars of the second decade of the 21st century,” said CPV Today’s spokesperson Carlos Márquez.
Growth
The size of the CPV market, according to the report, in terms of installed systems is estimated at 24.5 MW for up to 2009.
Currently the CPV market is estimated at under 0.2% of the total solar market by both volume and value.
In percentage terms, CPV has enormous market potential. CPV Today’s research shows that industry experts anticipate that CPV systems will hold an estimated 10% of the solar energy market by 2020, with this market penetration being mainly at the smaller and larger utility end of the market. Conventional PV is likely to continue to expand organically over the same time period. Research, which featured a panel of industry experts, shows a broad consensus that CPV installations will be in the order of 6GW by 2020.
These will largely consist of projects of 5MW or higher and will be located in areas of greater than 2000 kWh/m2/annum of direct solar irradiation.
Challenges
The report emphasises that many companies are still in the pre-commercial phase where seed capital is essential to fund the manufacturing of prototypes and test systems. Since venture capitalists need to keep a steady flow of investment returns, and green technology remains the most favoured VC investment sector, it is likely that strong start up and early growth companies will continue to attract funding.
Currently, the CPV industry is at the transition point between testing and commercialisation. This transition point is characterised by having many competing modalities or technological approaches at phase two, and fewer in phase three, as uncompetitive or less marketable approaches fail to finance funding or customers. Typically, a few companies are expected to dominate phase three at the expense of less well funded or well marketed competitors.
Sections of the report include:
· CPV Industry Growth Forecast until 2020
· CPV Value Chain Analysis
· Analysis of Government Incentives in Main Markets
· Who is financing CPV companies
For more information, click here: http://www.cpvtoday.com/businessintelligence/