In the wake of three straight quarters of capital expenditure growth in the PV industry, analysts IHS are confident that global PV capital spending will rise by as much as 45% this year, reaching an estimated $3.8 billion.
This new round of solar spending is most evident among Tier 1 PV manufacturers, says IHS's PV Manufacturing & Capital Spending Tool Q1 '14 report, which suggests that signs are strong that full utilization rates and increases in manufacturing investment will continue throughout the year, particularly in emerging markets.
"Since August of 2013, IHS has observed strong signs that a new capital spending cycle would start in 2014," said IHS solar analyst Jon Campos. "Key factors such as market sentiment, PV demand and equipment-supplier bookings have continued to progress as a result of a healthy level of optimism."
That optimism is most apparent in Latin America, which is expected to head the pack in manufacturing capacity growth for solar panels with an expansion rate of 35%. Although slightly down on last years 42% growth, this year's expansion represents a healthy, sustained level of confidence and capital expenditure in the regions PV market, with IHS even predicting growth to grow to 147% next year and into 2016. Spending in the Middle East-Africa market will also enjoy a healthy 2014, increasing by 33%, with North America enjoying a 13% rise in investment.
A number of the world's leading solar PV companies are leading the charge into emerging markets, ramping up investment in manufacturing in Africa, Latin America and the Middle East. Among them is China's Hanergy, which has recently announced plans to construct a $500 million thin-film PV factory in the Ivory Coast, West Africa. Fellow Chinese giant JA Solar in collaboration with Powerway PV has also unveiled details of plans to build a 150 MW PV plant in South Africa, while Germany's JVG Thoma has completed a 10 MW module plant in Nigeria the countrys first such facility.
Brazilian solar company Solar-Par Participacoes has revealed plans this week to invest $103 million in a 95 MW vertically integrated solar module production facility in the southeastern Brazilian state of Espirito Santo. Production at the plant is scheduled for early 2015, and will include a state-of-the-art, $5 million research and development center designed to augment Brazils domestic PV market capabilities.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.