According to the Annual Photovoltaics Status Report, Europe's production of solar cells rose from 1.1 GW to 1.9 GW, while the installed capacity increased threefold to 4.8 GW, primarily led by Spain where figures multiplied almost five times from 560 MW in 2007 to 2.5–2.7 GW last year. The cumulative installed PV electricity generation capacity in the world was around 15 GW, with Europe accounting for more than 60% of this (9.5 GW).
The study, conducted by the JRC Institute for Energy, gives an overview of current activities in research, manufacturing and market implementation in this sector and shows that European PV production has grown on average by 50% per annum since 1999, while its market share rose to 26% in 2008.
In terms of electricity generation, PV contributed around 0.35 % of Europe's final electricity consumption in 2008. During the opening of the European Photovoltaic Solar Energy Conference in Hamburg this week, the Director of the JRC Institute for Energy, Giovanni De Santi, said that “I am sure this is just the beginning”. De Santi believes that rising fossil fuel prices and increased environmental awareness will make renewable energies an especially interesting area for investors.
Although global investment in renewable energies and energy efficiency was hit by the financial crisis in late 2008 and early 2009, it is now showing signs of a strong recovery. After a significant slowdown in investment in the second half of 2008 (-10% in the third quarter; -23% in the fourth), that continued in the first quarter of 2009 (-47% compared with the fourth quarter of 2008), this trend started to reverse in the second quarter of this year (+83% compared with the first quarter of 2009).
China takes over as top producer
Last year, China became the leading producer of solar cells with an annual production of about 2.4 GW, followed by Europe with 1.9 GW, Japan with 1.2 GW and Taiwan with 0.8 GW. If this trend continues, China could account for approximately 32% of worldwide production capacity by 2012.
The JRC Institute for Energy has also identified that an increasing number of producers are entering the market, leading to the market share of the ten largest PV manufacturers falling from 80% in 2004 to 50% in 2008. Thin-film solar modules have reached 12-14% of the market share, while concentrating PV is emerging as a strong option with approximately 17 MW cumulative installed capacity in 2008.
The eighth Annual Photovoltaics Status Report is available at:
