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Thailand, South Korea gov't incentives boost PV installations

Posted: 30 Sep 2013 ?? ?Print Version ?Bookmark and Share

Keywords:PV installation? supply chain? emerging market?

Emerging markets where photovoltaic (PV) installations are expected to grow threefold from in the next five years, according to the latest forecast of IHS. Annual installations in emerging countries are set to rise to 10.9GW in 2017, growing at a CAGR of 38 per cent from 2.2 GW in 2012, indicated the market research firm. In contrast, the overall global market will expand at a CAGR of only 13 per cent during the same period. The emerging markets will account for 19 per cent of global installations in 2017, up from just seven per cent in 2012, IHS continued.

"Across the world, new markets for solar PV are emerging, propelled by government incentives, including tenders for large-scale contracts, feed-in-tariff (FIT) schemes and self-consumption support," said Josefin Berg, senior PV analyst at IHS. "Although these markets sometimes have huge hurdleslike limited financing, regulatory uncertainty and opaque local regulatory conditionscompanies throughout the solar supply chain can benefit from targeting these fast-growing emerging countries."

Of the emerging countries analysed, Thailand and Turkey are expected to become the largest markets in the coming years. Both countries have the potential to install a cumulative total of nearly 3GW of PV systems during the period from 2013 through 2017.

The Thai market has taken off because of its adder scheme, under which the government pays feed-in premiums to solar power producers.

In contrast, the Turkish market is still taxiing towards the growth runway. In June the country experienced an avalanche of applications that far exceeded the 600MW that had been planned by the government. This has delayed the licensing procedure and pushed back installations until late 2014 and 2015.

Turkey's rooftop market, however, is predicted to pick up speed in 2014 to reach 300MW. By 2017, its annual PV demand will climb to 1GW.

Among regions, IHS forecasts the biggest chunk of demand through 2017at more than one-thirdto come from new markets in Europe. Europe's relatively stable financial conditions and proximity to experienced PV companies will support rapid deployment once regulatory support takes shape.

Poland, Turkey and Russia are all rolling out support schemes, while Ukraine and Romania are installing PV systems at a rapid pace. For their part, the Netherlands, Switzerland and Denmark are set to continue on a path of rooftop installations.

In the other regions demand is evenly spread, with a few countries in each region spearheading growth. IHS expects South Africa, Israel and Saudi Arabia to drive PV additions in the Africa-Middle East region, while Chile, Brazil and Mexico will fuel demand in Latin America. In Asia-Pacific, PV demand is dominated by Thailand and South Korea, which are both on the brink of shifting their status from emerging to maturing PV markets.

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