"Large solar-power companies are looking at the vertical integration option in order to strengthen their competitive edge."
Jonathan Shieber -
WSJ - July 14, 2009
Hopefully this pulls the price of entry down for all of us. --Ed.
SHANGHAI --Governments across Asia have launched massive stimulus packages focused on renewable energy in recent months, and some analysts think the new infusion of cash could reshape a solar industry reeling from the economic downturn.
Australia, China, South Korea, and Taiwan have each put forth spending plans that allocate hundreds of millions - and in some cases, billions - of dollars for renewable-energy projects, including solar.
China's stimulus is by far the most sweeping, with more than $30 billion earmarked so far for renewable energy and "green" projects, including wind, hydropower, solar development and "clean coal" technologies.
At the same time, Australia in 2009 has set aside $1.35 billion to finance solar projects specifically, another $270 million for rebates for solar installations on homes, and a further $100 million to develop new solar technologies.
Joining in the Pacific Rim stimulus party are South Korea with a $2.3 billion package allocated for renewable-energy projects, and Taiwan with $1.3 billion of planned spending in 2009.
"These economic packages have strong potential to turn around the solar-power industry in the short to medium term," said Suchitra Sriram, an analyst with the global consulting and research firm Frost & Sullivan Ltd., in a statement.
She wrote that those stimulus packages could lead to new waves of demand for solar-power projects, resulting in a shift in demand from the traditionally strong markets of Europe and the U.S. to Asian heavyweights such as China, Taiwan, South Korea, India and Australia.
"In China, the $440 billion stimulus package has put solar power as one of the key green-energy resources to be developed in the near future. A number of solar-power projects are already under construction throughout the country," according to Sriram. "The upcoming solar-power installations have the potential to surpass the original 2020 target of 1.8 [gigawatts] by up to 10 times, reaching between 10 GW and 20 GW over the next 10 years."
But government spending isn't the only factor making solar manufacturers turn their attentions to the East. Consolidation opportunities are also...
[Read More]
Linear Mode
