The solar-energy industry continues growing at an astounding clip both technologically and financially, despite having been caught on its back foot by the economic downturn, a new report finds.
Solar industry growing fast
In the span of a few short years, the solar-energy business has elbowed its way from the fringe of the global energy game to become its fastest-growing segment, according to a report published by the Paris-based Renewable Energy Policy Network (REN21).
Installed grid-connected solar photovoltaic (PV) capacity grew by 5.4 gigawatts (GW) — a rate of 70% — to reach a total of 13 gigawatts (GW). Annual PV-module production capacity grew at the even faster rate of 90% last year to hit 6.9GW, as nearly every significant global solar firm expanded existing facilities and began building new ones.
“The recent growth of the sector has surpassed all predictions – even those made by the industry itself,” says Mohamed El-Ashry, chairman of REN21.
In contrast to the wind-power industry, which is dominated by a handful of first-mover countries, the solar-power business is more diversified and globalised – both in terms of its major players and markets. The industry remains frenetic and liquid, with new companies and fresh markets wrestling with each other for prominence.
In a testament to the industry’s rapidly evolving nature, last year China edged out Japan to become the world’s PV-cell production king, while Spain blasted past Germany to become the leading market for PV panels.
One defining trend of 2008 was the industry’s rapid pivot to embrace utility-scale solar farms, with somewhat less focus on outfitting individual homes and businesses. By the end of 2008 there were more than 1,800 solar-fired power plants larger than 200 kilowatts around the world – up 80% in just one year, according to the report.
These new plants generated a combined 3GW of electricity – a stunning 1.9GW of which came from Spain alone. A number of huge solar projects were completed in Spain during 2008, including the 60-MW Olmedilla de Alarcon plant, the world’s largest PV farm, and the 50-MW Andasol-1 plant, using concentrated solar power (CSP) technology.
Difficulty raising project financing may depress that growth in 2009, but many solar firms now consider the development and construction of large-scale solar plants a pillar of their future business.