solar pv report

8/7/2019 SOLAR PV REPORT

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TRADE IN SOLAR PHOTOVOLTAIC (PV)

SAILESH KUMAR

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SECTION A

Abstract

Solar Photovoltaic (PV) is a key technology options to fossil fuels and attractive alternate energy

source in coming future. The market trends of solar PV globally and the increasing tremendous

demand due to decrease in the cost of producing and country focusing on clean green energy. The

emerging trend globally regarding the Solar PV market scenario, various government initiativeand policy to promote and create awareness among the people. The global trade practice and

potential market from employment generation. The innovation that involves change in the

technology for manufacturing and its impact in respective country. The global competition that is

leading to international trade conflicts and currency wars. The focus on tapping the potential

market globally and utilizing the resources effectively. The trend from being a inferior project to

booming sector where key issue is to effective implementation and adoption of technology at a

larger scale.

Introduction

Solar energy is free, inexhaustible sources of energy where it has necessitated the need for green

clean energy. The tremendous increase in the demand for power has shifted the focus on

renewable energy due to its cheap and reliable production without any hazard to environment.

There are several advantages of photovoltaic solar power that make it "one of the most promising

renewable energy sources in the world." It is non-polluting, has no moving parts that could break

down, requires little maintenance and no supervision, and has a life of 20-30 years with low

running costs. Though the PV power today only constitute only a small percentage of global

electric power consumption. Solar energy is most sought today in developing countries, the fastest

growing segment of the photovoltaic¶s market. As the price of solar power lowers and that of

conventional fuels rises, photovoltaic¶s is entering a new era of international growth. So much so,

that solar power will remain an excellent energy option, long after the momentary fossil fuel

model fades into smoke.



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The Solar PV market

Solar electric energy demand has grown by an average 30% per annum over the past 20 years

against a backdrop of rapidly declining costs and prices. This decline in cost has been driven by

economies of manufacturing scale, manufacturing technology improvements, and the increasing

efficiency of solar cells. In 2009, the photovoltaic solar industry generated $38.5 billion in

revenues globally, which includes the sale of solar modules and associated equipment, and the

installation of solar systems. The forecasted growth in the world PV market would be from $46.3

billion to $96.8 billion in 2014. PV installations grew to 7.3 GW in 2009, up 20% from the prior

year. Expected to reach 13.1 GW in 2010, the various forecast scenarios predict demand rising to

37 GW in 2014, more than five times the size of the 2009 market. The worldwide on-grid

segment grew by 20% in 2009, and the off-grid market grew 23% in 2009, faster than on-grid for

the first time in 15 years but on a much smaller base. The largest on-grid market by far has been

Germany, where demand has been stimulated by very attractive feed-in tariffs. This is followed

by Japan, where grid-connected applications are also stimulated by market incentive programs.

The photovoltaic (PV) technology across the globe is rapidly progressing and is increasingly

being considered as an innovative source of renewable energy. The world¶s largest market is

USA, South Korea, China, Taiwan and Europe. Though Europe net production increase but it isa major importer of solar cells.[5]



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PV Market in India

India is holding significant potential in generation of renewable energy using solar PV, as the

country can make use of sunlight in nearly 300 days in a year. Other drivers of PV industry in

India include the country¶s rapidly rising energy needs, the persistent energy deficit situation,

and dependency of imported coal and oil for the energy generation requirements. The SPV

capacity in India is 100 MW. The market comprises of 20 companies engaged in the business of

solar PV modules and 15 companies engaged in the business of solar PV cells while there are 50

companies that are engaged in the assembly and supply of PV systems. The various initiatives

undertaken by the Government of India with the major initiative being the Jawaharlal Nehru

National Solar Mission focus on R&D, transfer of technology, training and human development

of human resources to drive the market, intra-industry cooperation in expanding the PV supply

chain, sharing technical information through conferences and workshops, tie-ups between

domestic and foreign firms.[1]

The industry also imports raw materials and components for PV modules. The imports are in the

form of silicon wafers (imported by cell manufacturers), and silicon cells (imported by module

manufacturers). Government of India has introduced a Solar Photovoltaic (SPV) programme,

which has accelerated the development of the PV technology in India, and encouraged

countrywide usage of various PV applications through demonstrations. The R&D base in Indian



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PV industry has also been developed, in areas such as development of new materials, processes,

systems, production and testing equipment for solar cells and modules, and electronics used in PV

systems, supporting the indigenous production capabilities. The market can look forward to large-

scale private investments across the PV value chain, especially in the production of polysilcion

feedstock, silicon wafers, PV modules and cells, as well as balance of system components.. India

is a net exporter of Solar PV to countries like Germany and Spain which contribute for 82% of the

export.[1]

Source: Ministry of Commerce, Trade under HS Code: 85414011.

Promotion of Solar PV

Currently, over 60 countries have policies in place to promote renewable energy power generation.

Feed in tariffs introduced by 45 countries has proved to be the powerful tool for countries to offer

financial assistance to power producers. Most significant was the opening of the grid-connected

Solar PV market in China with a new policy for building-integrated PV, which also applies to off-

grid applications. A number of US cities and states have been considering residential solar

lease/loan program. Japan increased the national solar PV subsidies for schools, hospitals, and

railway stations from 33 to 50%. It also planned to have two-third of newly built houses equipped

with solar PV by 2020.[1]

India has several initiatives to promote Solar PV applications. The major initiative being the

launch of Jawaharlal Nehru National Solar Mission (JNNSM). It objective was to focus on the on-



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grid and off-grid connects systems. Enabling growth of domestic solar PV industry by providing

zero import duty for capital equipment, raw materials, processed and application. Initiating R&D

which will lead to innovation and technology to cater the cost effective application. Strategic

collaboration with different trading partner like EU for research, development, training and

development of technology for green and clean energy. Currently, PV installations in India, almost

entirely consist of off-grid connectivity and small capacity applications, used mostly for public

lightening. The government of US and India signed a MoU in march 2009 to execute a 50-50 cost

shared 21 kW thin film PV technology validation project to evaluate the performance of thin film

PV modules under Indian climatic conditions. The state level initiative of solar city within the

states of Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu and

West Bengal have announced their own solar PV projects, policies, plans, and incentive packages

in recent months, including those for grid-connected generation.[1,5][4]

Global Trade of Solar PV

The production of solar PV across the world increased rapidly where Chinese solar companies

now control two thirds of solar cell production in the $39 billion global PV market. The European

market posed a tremendous increase in solar PV then also it was a net importer of PV from China,

India, and Taiwan. The trade pact with Canada provinces of Ontario solar boom for feed in tariff

between Japan, Germany has become the onshore site for manufacturing of Solar PV. The

imbalance between the supply and demand of the Solar PV has necessitated in reducing the cost

and improving the technologies. Globally, more than 150 companies are involved in the Thin-Film

solar cell production process, ranging from R&D activities to manufacturing plants.

Importer of Solar PV:

Trade of Solar PV with India where Germany is the major importer followed by Taiwan whichaccount for 80%. The other countries for import are Spain, Chain and Japan. Germany and Spain

are the major export market for Indian solar PV accounting for 82% apart from Netherlands, Italy,

Belgium and Afghanistan.[1][6]



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International Trade disputes

Global solar PV competition had increased the international trade disputes. Buyers of solar

products, equipment and materials should be able to purchase from suppliers around the world

without tariffs or other restrictions that favor local manufacturers and suppliers of solar products

and services should be able to sell throughout the world without unreasonable tariffs, fees or other

unique burdens. Any barrier that restricts the free trade of goods and services between countries

raises overall costs, ultimately impacts all buyers and sellers, and decreases the amount fossil fuel

displaced through solar power generation. China began blocking the shipments of rare earth

minerals to Japan as well as to US and Europe. The 17 minerals are used in many products

including solar cells, semiconductors and LEDs. These emerging trade disputes have led to the

controversy over currency policy. Chinese solar companies now control two thirds of solar cell

production in the $39 billion global PV market. This is mostly because the generous subsidies they

receive at home give them an advantage over other countries' manufacturers and restrictions keep

foreign companies from competing for China's domestic projects. European and U.S. subsidies are

designed to boost solar usage no matter who builds the hardware. Chinese subsidies, western firms

complain, help Chinese solar manufacturers alone. The intimate coupling of solar power with the

political process throughout the world, and its association with jobs and economic development,

make normal trade frictions potentially spill over in ways that can be enormously detrimental tothe solar industry supply chain. With over 75% of the world¶s demand for solar power, Europe

contributes only 25-30% of the global supply. In Germany, over 50% of the cells and modules are

now coming from China. The US may also find China dominating the supply of PV cells and

modules as demand grows.[5]

Japan initiated a trade dispute with Canada over Ontario¶s feed-in tariff policy which demands that

up to 60 percent of all green energy project inputs be manufactured in the province. Opponents of

the ³made in Ontario´ provisions argue that the heavy preference for local content raise energy

prices, and ultimately slow the world¶s conversion to green energy.[5]

In India, under the Jawaharlal Nehru National Solar Mission (JNNSM), the government has

established a goal for deploying 20GW of solar power by 2022. As part of the program, solar PV

projects using crystalline silicon technology during FY2010-11 will be mandated to use modules

manufactured in India.



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In the solar marketplace today, the SEMI PV Group support of free and open trade can be

characterized by the following principles:

1.) The ultimate objective of the SEMI PV Group is the long term growth and profitability of our

members who are the premier global companies in the solar PV supply chain. In Asia, the PV

Group has been focused on advocating demand-side policies to encourage the development of

local markets for solar products, primarily in China, Taiwan and India.

2.) The overwhelming responsibility for the PV manufacturing supply chain is to deliver the

lowest cost per kWh to the user. Global industry standards that reduce costs and enable innovation

are an essential component of this responsibility.

3.) The PV Group advocates solar policies that are transparent and streamlined. Policies should be

clearly defined, simple to understand and focused on solar power adoption goals. Sound PV policy

should be neither discriminatory nor protectionist.

4.) As a trade organization with suppliers in every major manufacturing region of the world, SEMI

PV Group support government policies that support manufacturing operations. Especially in

Europe and United States, policymakers need to develop programs that seek a balance PV demand

with PV supply--and that means policies that retain and grow the manufacturing base.[2]

Conclusion

The area of focuses has shifted from fossil fuel or conventional source of energy to clean green

renewable energy. The technology development has led to tremendous increase in the

manufacturing capabilities and application of solar PV. This emerging trends globally predicts the

prospectus growth in the industry in coming future due to its cost effective. The raising trade and

strategic alliance of country in fostering and nurturing Solar PV market. The only focused is to

maintain balance between supply and demand of Solar PV.



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References:

1. Solar PV Industry 2010 : Contemporary scenario and emerging trends

http://www.isaonline.org/documents/ISA_SolarPVReport_May2010.pdf

2. Global Solar PV Competition Creates Increased International Trade Disputes

http://www.solarfeeds.com/pv-group/15131-global-pv-competition-creates-increased-

international-trade-disputes

3. Government policies for driving the growth for Solar photovoltaic market in India

http://www.indiaprline.com/2010/06/11/government-policies-for-driving-the-growth-for-solar-

photovoltaic-market-in-india/

4. India Solar Photovoltaic Market Shines Bright as the Government Encourages Private

Investments, finds Frost & Sullivan

http://www.solarindiaonline.com/content/2010/02/india-solar-photovoltaic-market-shines-

bright-as-the-government-encourages-private-investments-finds-frost-sullivan/

5. India¶s Solar-Mission for 20 giga watt by 2022

http://www.solarserver.com/solar-magazine/solar-report/solar-report/photovoltaic-market-

trends-2010.html

6. Solar PV Market Analysis

http://www.renewableenergyworld.com/rea/news/article/2010/07/solar-pv-market-analysis

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