Opinion & Analysis

The world is still combating Covid-19, with Europe now impacted by a second wave of the virus. While the market reported delays for a few projects, the impacts on the PV sector remain unclear. But if the world fails to curb the Covid-19’s spread, governments may be forced to reintroduce strict measures, thereby sapping PV demand. PV InfoLink’s Mars Chang expects module demand to hit 126 GW by the end of this year.

You’ll need to pay close attention to find the few mentions of solar in the long-awaited White Paper issued by the government to outline how it plans to hit net zero by mid century.

The European solar market saw around 11 GW of projects, and pipelines change hands in 2019. The positive trend is expected to last, as investors remain optimistic about the future of the industry. Project acquisition activity is seen as a key indicator of financial health in many sectors, including the PV market. It reflects optimism among investors and points to a particularly high degree of liquidity, writes IHS Markit analyst Martina Assereto.

Aggregators continuously monitor the needs of the electricity grid on one side and the energy consumption of a large number of distributed assets on the other. When the grid is stressed or out of balance, aggregators adjust the consumption or production of those distributed energy assets to help the grid restore balance. These services either lead to direct compensation from a transmission system operator (TSO), or a reduction in the total energy bill of the owner of the distributed asset.

The development process for ground-mounted utility scale solar projects in Vietnam is laborious, time-consuming, expensive and still largely difficult to navigate for foreign developers without entering a strategic partnership, in whatever form, with a local Vietnamese counterpart.

Vietnam has now effectively overtaken Thailand as the largest solar market in Southeast Asia in terms of installed solar operational capacity, with more than 6,314 MW installed up to September 2020. Many hundreds of MWs of solar projects are also still under construction or development. However, its solar (and other renewable energy) M&A activity has developed very slowly to date. There are many reasons to expect that this is about to change, but before we examine them, let us review the main factors behind this sluggish tempo.

Focusing on the big picture is always challenging, particularly in light of the current all-consuming coronavirus pandemic. However, there are some key issues related to the U.K. solar sector, which will feature significantly on the domestic agenda in the months ahead.

The Vietnamese renewables industry has been flourishing lately. Taking the example of the solar sector, the installed capacity increased from barely 134 MW in 2018 up to 6,000 MW in 2020. Vietnam has definitely emerged as one of the most active countries in South-East Asia and with the merit of diversifying its energy mix. They added capacity not only in solar – utility scale, commercial & industrial (C&I) rooftop – but also onshore/nearshore wind, hydro and to some extent biomass energy projects. Vietnam has shown levels of dynamism which has attracted initial investor interest.

The pandemic and accidents at polysilicon labs in China’s Xinjiang region put PV manufacturers under pressure to maintain production this year, while slowing cell and module R&D. After half-cut and multi-busbar becomes commonplace, manufacturers will continue to explore the high-density assembly methods that emerged last year, as well as n-type cells. But the market is also shifting to large formats, and the share of bifacial products is growing this year. As sizing up modules can bring immediate returns, PV InfoLink’s Amy Fang expects the PV industry to prioritize the development of large formats and bifacial products next year.

Since President Andrés Manuel López Obrador’s election at the end of 2018, renewable energy in Mexico has faced an uncertain regulatory environment. The current government is focused on restoring the power and influence of Mexico’s state-owned energy companies. But it is now at a crossroads, as the previous administration aimed to open the segment up to foreign investment. Maria Chea of IHS Markit examines the policy decisions the government has taken this year and how these have soured private investor sentiment. These changes will likely weigh on utility-scale PV procurement in the country through 2024.