The global residential energy storage market continued to grow in 2020, writes IHS Markit Analyst Michael Longson. Many suppliers were looking to build upon a strong first quarter when Covid-19 hit in March 2020 and slowed the market significantly. However, as a result of several funding packages being introduced and the gradual easing of local restrictions, shipments continued to grow throughout the second and third quarters, enabling strong year-on-year growth for the sector in 2020.
IHS Markit is predicting the world will add 30% more solar capacity this year.
Market observer IHS Markit has shared its forecast installation figures for 2021, where they expect a ‘wild ride’ for the PV industry to install 158 GW of new generation capacity. This figure amounts to 34% growth on 2020 installations, driven by completion of delayed projects from this year, as well as a generally increased appetite for PV and renewables around the world.
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.
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.
A new wave of consolidation and some reshuffling is underway among market leaders in the solar EPC space, writes IHS Markit’s Josefin Berg. In 2019, the 30 largest EPC providers globally installed 28 GW of non-residential PV, representing 26% of the total market. This increase from 21% in 2018 stems mainly from a growing concentration in the Chinese PV market, as well as integrator concentration in rapidly growing markets like Spain and Vietnam.
The business intelligence firm has projected storage costs will continue their downward trajectory on the back of product and process optimization. That will favor a higher adoption rate in automotive and grid applications, the analysts say. Elsewhere, discoveries of lithium in the U.S. and the U.K. have raised hopes for lower raw material costs and more supply chain diversity.
The Covid-19 pandemic continues to cast a cloud on industries around the world, but the U.S. utility-scale solar segment is still growing, writes IHS Markit solar analyst Maria J. Chea. Around 3 GW of solar PV is set to be installed this year in Texas alone, but opportunities also abound across several other southern U.S. states.
Negative second-quarter updates from China and uber-low new-solar figures from India, however, show the world is far from out of the woods yet.
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