According to a recent report from Emerging Energy Research (EER), the solar photovoltaic (PV) sector is building in a momentous fashion across Europe. Particularly in Spain, PV production and development activity is rising and, due to newly adopted feed-in tariffs in several participating countries, project sizes are getting larger. And according to the study, this has caused increasing shifts in competitive positioning along the project development chain.

EER is one of the leading advisory and consulting firms, tracking emerging technologies in global energy markets. The firm have recognised the solar market as one of exceptional growth and most impacted by technology advances, regulatory trends, market trends, and industry re-structuring – and has subsequently attracted hundreds of new clients. It is this level of response within the market that has begun to underline the vigorous economies of solar power.

Germany, which has basked in years of leading stewardship of the solar PV industry, has been joined by a growing Spanish market, and together the two countries are increasing the pace for PV development on the European continent. German PV provider Phoenix Solar is building on its growing portfolio in Spain and expanding into the increasingly active Greek market.

Spain is forecasted to install some 800 megawatts (MW) in 2008 and is set to grow to 5.6 gigwatts (GW) by 2012, according to the EER report. With relatively stable, long-term initiatives in place, a net figure for installed grid-connected PV capacity in Germany and Spain amounted to 1,440 MW in 2007, accounting for 92% of the 1,562 MW installed in Europe. And with further incentive regimes being deployed throughout Europe and 2008, the EER figures are bound to see another industrial surge later this year.

An unofficial alliance between six countries – Germany, Spain, Italy, Greece, France and Portugal – are expected to make use of the lion’s share of PV development activity over the coming years by adding 22 GW from 2008 through to 2012. But according to the report, the establishment of high feed-in tariffs in emerging markets, including Bulgaria, Switzerland, and the Czech Republic have set off a broader wave of PV development than was initially expected – which has invigorated developers who are now positioning to establish operations and take control of first-mover advantages in these emerging PV markets.

Independent power producers, parented by Aciona Solar and AES, are looking to continue expanding their renewable portfolios to include solar PV – moving beyond wind, solar CSP, small hydro power, and biomass. Other leading European utilities – including Edison, Enel, Iberdrola and EDF-EN – have become increasingly interested in potential of photovoltaic advancement.

EER senior analyst Reese Tisdale said: “As the industry landscape adapts to lucrative feed-in tariffs, new markets, and supply chain bottlenecks, participants are beginning to target segments along the value chain that can leverage their core capabilities in manufacturing, system integration, and project ownership."

As well as substantial activity in the European solar PV market, the rapid growth in the solar photovoltaic industry could lead to a fierce global competition within the markets, producing a surge of consolidations, and effectively lowering the PV cell module price.

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