Taipei, Friday, Nov 01, 2024, 00:20

News

Global Solar PV Demand Is Forecast to Reach Record 113 GW in 2018, IHS Markit Says

Published: Apr 10,2018

Global solar photovoltaic (PV) demand is forecast to hit another annual record of 113 gigawatts in 2018, propelled by strong demand anticipated in China. According to business information provider IHS Markit, burgeoning demand from the Chinese market is expected to persevere on the back of continuing policy support, a successful transition from a market that had been dominated by large ground-mount projects and strong momentum in the distributed-PV (DPV) sector. In particular, the fourth quarter of 2018 — with 34 gigawatts of new PV installations — will be the largest quarter in history.

More on This

Coronavirus Disrupts Display Panel Production in China, Spurring Supply Shortfalls and Rising Prices

The escalating coronavirus crisis is impacting production at display panel factories located in the semi-quarantined city of Wuhan...

AMOLED TV Display Market Revenue to Reach $7.5 Billion by 2025, Says IHS Market

Driven by falling prices and rising consumer demand for thinner, lighter and more colorful television sets, market reven...

“This latest forecast is close to the global polysilicon limit manufacturers can supply,” said Edurne Zoco, research and analysis director for IHS Markit. “Tight supply and stable prices will continue throughout the year. Our forecast assumes manufacturers can further ramp up production, to meet demand, in the second half of the year.”

According to the latest edition of the new PV Installations Tracker, global solar installations will grow by 19 percent in 2018, similar to the 20 percent year-over-year growth in 2017. At this rate of installation, module availability will once again be the limiting factor, and prices may limit investment returns on solar projects already under contract to sell electricity at low prices. Stable module prices are expected throughout the year, which is a direct result of continued high demand.

“Demand is not only picking up in China, but also in India, where developers want to secure modules before any additional tariffs are introduced,” Zoco said. “The United States continues to import modules, despite the latest import tariffs. In emerging markets, countries like Egypt, Brazil and Mexico have large PV projects requiring modules in 2018. Several projects that were postponed in 2017, due to high module prices, will need to be installed this year.”

China will once again dominate global PV demand, reaching 53 gigawatts with an upside potential of 60 gigawatts in 2018, and comprising almost half (47 percent) of the total market. “Demand in China will once again shape the global PV market,” Zoco said. “This year China will have feed-in tariff deadlines in the second and fourth quarters, which will create two sharp installation peaks.”

Outside of China, India is forecast to overtake the United States as the second largest PV market. Even if project profitability remains highly sensitive to module pricing, the fear of possible future import tariffs is likely to drive developers to complete installations in 2018.

Emerging solar markets Mexico and Egypt will make up 1.8 percent and 1.3 percent of the solar market, respectively, replacing South Korea and the United Kingdom in the ranking of the 10 largest PV markets, in terms of annual PV installations.

CTIMES loves to interact with the global technology related companies and individuals, you can deliver your products information or share industrial intelligence. Please email us to en@ctimes.com.tw

917 viewed

comments powered by Disqus