Global Solar Photovoltaic Installations to Exceed 100 Gigawatts in 2018

Reading time ( words)

Largely driven by an improvement in the outlook in China, global photovoltaic (PV) demand is forecast to reach 108 gigawatts (GW) in 2018. According to business information provider IHS Markit strong demand from the Chinese market is expected to continue on the back of strong policy support, a successful transition to a more diverse market and strong momentum in the distributed-PV (DPV) sector.

“Exceeding 108 gigawatts of PV installations is close to the top-end of what can be achieved, based on the global polysilicon manufacturing capacity,” said Edurne Zoco, research and analysis director for IHS Markit. “Supply will therefore be tight throughout the first half of the year at least, resulting in stable to higher prices across the supply chain.”

According to the latest edition of its PV Demand Market Tracker, global installations will likely be shaped by PV module supply and pricing. “Short supply and higher-than-anticipated module prices in the first half of 2018 will impede many markets outside China, due to worsening project economics,” Zoco said. “Projects in some regions might be delayed or even canceled, because market prices are higher than were estimated during the planning phase.”

In a marked change from the past, Chinese PV module suppliers are now prioritizing their domestic market. At one time China represented one of the lowest-priced PV markets, but after prices increased in 2017, China became an attractive market for local manufacturers. As a result, supply to other regions is restricted when demand in China is strong.

In addition to the expected shortfall in PV modules, following are the two most important factors influencing the PV outlook outside of China next year:

1. The United States, which is still forecast to be the second-largest PV market in 2018, is facing significant policy uncertainty. President Trump’s final ruling on Suniva’s 201 petition case could significantly affect global PV economics in this market. Planned corporate tax reforms could also significantly weaken investor interest in the sector. The relationship between supply and demand has already become distorted, due to the stockpiling of modules ahead of the 201 decision.

2. India, the third-largest market in 2018, is mulling the introduction of anti-dumping duties for modules manufactured in China in the second half of 2018. The country has also announced tenders for projects with local content. Such measures may limit the amount of modules available to supply India’s PV demand over the next few years, unless local manufacturers ramp up production quickly.

About the PV Demand Market Tracker

The PV Demand Market Tracker from IHS Markit provides forecasts and analysis for installed PV capacity in nearly 50 countries. The tracker is updated quarterly, to provide the most up-to-date projections for each market based on the latest policy changes and market developments.

About IHS Markit   

IHS Markit is a world leader in critical information, analytics and expertise for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world's leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.


Suggested Items

Telecom (Compute and Storage) Infrastructure Market to Reach $16.35B in 2022

09/03/2018 | IDC
A new forecast from IDC sizes the market for compute and storage infrastructure for Telecoms at nearly $10.81 billion in 2017. However, as Telecoms aggressively build out their infrastructure, IDC projects this market to see a healthy five-year compound annual growth rate (CAGR) of 6.2% with purchases totaling $16.35 billion in 2022.

What’s Coming in 3D Printing Technology in 2018

12/27/2017 | Cullen Hilkene, 3Diligent
First, the arrival of extrusion metal printing. Today's extrusion printers are the most prevalent and, arguably, user-friendly 3D Printers in the market. Now, after years of there being zero metal extrusion printers, there will be two in the new year from Desktop Metal and Markforged. These technologies promise new materials and a higher degree of user friendliness for metal printing.

Global LED Market Expected to Record a CAGR of close to 17% until 2020

05/26/2016 | Business Wire
This research report titled ‘Global LED Market 2016-2020’ provides an in-depth analysis of market growth in terms of revenue and emerging market trends. The market size is calculated on the basis of revenue generated from four segments, including general lighting, backlighting, automotive lighting, and others.

Copyright © 2018 I-Connect007. All rights reserved.