European PV demand to drop to 10 GW in 2014 - NPD Solarbuzz

May 29, 2014 - Solar photovoltaic (PV) demand from Europe in 2014 is expected to decline by 7.7% in annual terms to 10 GW, NPD Solarbuzz said on Wednesday.

This compares to a record high demand of 19.2 GW in 2011, the market research firm noted in its European PV Markets Quarterly report. Overall, Europe will account for only 22% of worldwide PV demand this year, against 70% in 2011.

In the first quarter of 2014, European PV demand climbed by 10% quarter-on-quarter but was down 8% year-over-year. The UK, which saw a rush in the solar segment ahead of a planned reduction to its Renewable Obligation Certificates (ROCs) incentive, was responsible for 43% of January-March demand on the continent. However, activity slowed down in the past few weeks after the government unveiled plans to restrict the ROC scheme to projects of less than 5 MW.

“In fact, for Europe to reach 10 GW of demand in 2014, the UK would need to meet expectations of doubling in size,” according to analyst Susanne von Aichberger.

The projected drop in PV demand is a result of key funding reductions in Germany, Italy, Greece and Romania. More specifically, Germany, Italy and Greece are forecast to account for only 37% of the overall demand in Europe, against 71% in 2012. Still, demand is forecast to grow in France, the Netherlands, Austria, Portugal, Switzerland and Turkey this year, but it is projected to fall in Belgium, Denmark, Romania, and Ukraine.

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