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Last updated: 20 June 2006

Strict cost targets and a reduced subsidy limited the number of PV water pumping systems installed in India to only 366 in 2004. The IEA PVPS Trends report presents an accurate snapshot of what currently constitutes around 90 % of the total international PV activity. We are also endeavoring to provide more of the global context by featuring information about key markets and production outside of IEA PVPS.

Indian summer

In terms of markets, India remains the largest PV user outside IEA PVPS, and indeed is a very significant market in global terms, with a reported 86 MW installed; only Japan, Germany and USA have more installed capacity. The Ministry of Non-Conventional Energy Sources (MNES), has been supporting India’s PV dissemination and development for over a decade. Almost 325 000 ‘solar home systems’ (including simple solar lanterns) have been installed with grant support under the Solar PV Demonstration and Utilization programme to date, with some 16 500 installed in 2004. A number of grid interactive village power systems (totaling over 2,8 MW to date, with a further 400 kW under construction) have also been supported with 66 % funding from MNES. However, the grid-interactive plants are not yet commercially viable and this funding stream has been closed as of 2004.

China finds first gear

China, a market that had been expected to explode for many years, has only begun to demonstrate some of its massive potential in the last three years. Installed PV power capacity has trebled since 2001 to at least 65 MW, due to the launch in 2002 of the Song Dian Dao Xiang (SDDX – the National Township Electrification Programme) and the continuation of the Brightness programme. China is now the 5th largest PV user worldwide. The SDDX will conclude in 2005, having completed electrification of 662 townships (15,7 MW), but will be superseded by the SDDC (National Village Electrification Programme), which will deliver solar power to 10 000 villages (265 MW) by 2010 and a further 18 000 villages (1 700 MW) by 2020.

East Asian Manufacturers catch the PV train

In respect of manufacturing the significant news in 2004 was the dramatic increase in production from China and Taiwan. China’s monocrystalline ingot and wafer production amounted to about 57 MW in 2004, while domestic multicrystalline throughput was around 10 MW. It is worth noting that the total module production capacity indicated by the ten main Chinese PV players in 2004 was over 270 MW (267 MW crystalline Si, 6 MW a-Si), against cell production capacity of around 60 MW and actual module production estimated to be about 65 MW. Indications are that additional production capacity of over 100 MW of crystalline silicon cells and at least 240 MW of modules is planned for 2005. The majority of China’s module manufacturers are reliant on imported wafers or cells. Some companies may struggle to secure upstream silicon supplies over the next few years, to justify the planned capacity increases.

In terms of PV cells, Taiwan was again an important non-IEA PVPS production country, reporting an increase of over 100 % to 35 MW of crystalline silicon (both single and multi-crystal) output alongside 3-4 MW of amorphous silicon production. This places Taiwan sixth behind Japan, Germany, USA, Spain and China in the global cell production rankings. Crystalline silicon cell production capacity is expected to increase by a further 140 % by the end of 2005.

At approximately 30-37 MW, India’s module output in 2004 was largely unchanged from 2003. The vast majority of India’s 2004 production was exported.

Thailand and beyond

The third Non-OECD country to make the top-ten in terms of total installed PV capacity, with an estimated 25 MW, is Thailand. The Thai energy strategy has a strong environmental focus and a view towards energy security through more effective use of domestic energy resources. Incentives and an obligation on power producers are expected to deliver an additional 214 MW of PV by 2011. A separate project is already under way to provide 120 W solar home systems to 300 000 households by the end of 2005. The two measures would together put the nation-wide installed capacity at over 250 MW by 2011.

Aside from these three, are at least a dozen other countries that can claim at least 1 MW of installed PV, including South Africa (12 MW), Morocco (> 7 MW), and Indonesia (> 6 MW). The Philippines and Sri Lanka can each claim a 2004 market of around 1 MW, though achieved via very different approaches: on the island of Mindinao, Philippines, a single 1 MW grid-connected demonstration plant was installed alongside an existing hydroelectric plant, while in Sri Lanka over 23 000 off-grid solar home systems were installed under the Renewable Energy for Rural Economic Development (RERED) Project. RERED aims to expand the commercial provision and use of renewable energy, particularly to increase rural access to electricity, with a focus on improving the quality of life and economic development. The project will provide around 28 million USD specifically for solar PV investments (alongside other RE technologies, energy efficiency and demand side management measures).

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