Small European Countries to Post Huge Growth in Solar
While much of the focus on the Photovoltaics (PV) industry is on the globe’s major economic powers, smaller nations are expected to deliver some of the world’s highest growth rates, with deployment of solar systems rising by a factor of 10 in the Czech Republic, by 30 times in Greece and by a stunning 600-fold in Bulgaria during the period from 2008 to 2013, according to iSuppli Corp.
Czech Republic Checks Out PV
The Czech government is a firm believer in PV. However, the deployment of the technology in the country is still in its infancy. Demand is being generated by consumers who want to install their own solar systems on rooftops and by businesses via ground installations.
iSuppli forecasts the Czech Republic could install 500 Megawatts (MW) of solar systems by 2013, up from 50MW in 2008, rising at a Compound Annual Growth Rate (CAGR) of 66.5 percent. This equates to $1.7 billion in revenue for the country by 2013, up from $300 million in 2008.
Needless to say, foreign investors are looking at the country as a region of opportunity and growth during the next five years. Given its strong growth, the Czech Republic might become another leading country for solar power in Europe. The limiting factor might be the political support and the annual adjustments the government makes on Feed-In Tariffs (FITs). Another inhibitor could be the country’s small population—10 million inhabitants—and its lack of favorable solar radiation.
Bulgaria Gets its Moment in the Sun
Bulgaria is a relatively new player in the solar installation landscape, as it just began to introduce FITs for PV in 2007. Because of this, iSuppli’s forecast calls for 600MW worth of installations by 2013, up from 1MW in 2008, rising at a CAGR of 89 percent.
As further construction of solar systems based on the current FIT incentives continues through 2011, the country will prepare for new PV legislation for 2012 and beyond, opening up opportunities for the country to expand its solar presence. This situation provides positive long-term guidance for investors and iSuppli believes that this alone will give Bulgaria a strong upside potential for foreign investments leading to robust growth in PV installations.
Greece Greases the Wheels for Solar
Greece has the highest Return on Investment (RoI) for solar in the world. Unfortunately, the country also has a governmental system that may be the most bureaucratic in Europe. That means that while the foreign and domestic investment demand may be high, having to pass all the hurdles to get a PV system installed may be slowed by the government.
However, given the high RoI and the country’s high level of exposure to solar radiation, the Greek market has strong potential, according to iSuppli. That said, the administrative procedures must improve for this to happen.
iSuppli forecasts PV installations in Greece will hit 1.2GW by 2013, up from just 40MW in 2008, rising at a CAGR of 88.5 percent. This being the case, a flood of investors could flock to Greece beginning in 2010 when the nation increases its FIT incentives to 5 percent. However, this all depends on improvements to permit procedures.
If this happens sooner rather than later, these investors could begin to move to Greece this year.
The Mice That Roared
While these three countries won’t compare to the number of installations happening in Germany, Spain or France, the potential for revenue growth and demand in these nations cannot be discounted and the investment coming to these regions for PV will provide the overall PV market with continued growth for years to come.
Czech Republic Checks Out PV
The Czech government is a firm believer in PV. However, the deployment of the technology in the country is still in its infancy. Demand is being generated by consumers who want to install their own solar systems on rooftops and by businesses via ground installations.
iSuppli forecasts the Czech Republic could install 500 Megawatts (MW) of solar systems by 2013, up from 50MW in 2008, rising at a Compound Annual Growth Rate (CAGR) of 66.5 percent. This equates to $1.7 billion in revenue for the country by 2013, up from $300 million in 2008.
Needless to say, foreign investors are looking at the country as a region of opportunity and growth during the next five years. Given its strong growth, the Czech Republic might become another leading country for solar power in Europe. The limiting factor might be the political support and the annual adjustments the government makes on Feed-In Tariffs (FITs). Another inhibitor could be the country’s small population—10 million inhabitants—and its lack of favorable solar radiation.
Bulgaria Gets its Moment in the Sun
Bulgaria is a relatively new player in the solar installation landscape, as it just began to introduce FITs for PV in 2007. Because of this, iSuppli’s forecast calls for 600MW worth of installations by 2013, up from 1MW in 2008, rising at a CAGR of 89 percent.
As further construction of solar systems based on the current FIT incentives continues through 2011, the country will prepare for new PV legislation for 2012 and beyond, opening up opportunities for the country to expand its solar presence. This situation provides positive long-term guidance for investors and iSuppli believes that this alone will give Bulgaria a strong upside potential for foreign investments leading to robust growth in PV installations.
Greece Greases the Wheels for Solar
Greece has the highest Return on Investment (RoI) for solar in the world. Unfortunately, the country also has a governmental system that may be the most bureaucratic in Europe. That means that while the foreign and domestic investment demand may be high, having to pass all the hurdles to get a PV system installed may be slowed by the government.
However, given the high RoI and the country’s high level of exposure to solar radiation, the Greek market has strong potential, according to iSuppli. That said, the administrative procedures must improve for this to happen.
iSuppli forecasts PV installations in Greece will hit 1.2GW by 2013, up from just 40MW in 2008, rising at a CAGR of 88.5 percent. This being the case, a flood of investors could flock to Greece beginning in 2010 when the nation increases its FIT incentives to 5 percent. However, this all depends on improvements to permit procedures.
If this happens sooner rather than later, these investors could begin to move to Greece this year.
The Mice That Roared
While these three countries won’t compare to the number of installations happening in Germany, Spain or France, the potential for revenue growth and demand in these nations cannot be discounted and the investment coming to these regions for PV will provide the overall PV market with continued growth for years to come.
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