Future PV Demand Will Be Based upon Widespread Adoption of Large-Scale Ground Mounted PV Installations

Santa Clara, Calif., April 1, 2013—Solar photovoltaic (PV) demand from the Emerging Asia Pacific and Central Asia (EAPCA) region is forecast to exceed 3 gigawatts (GW) by 2017, based on findings in the new NPD Solarbuzz Emerging PV Markets: Asia Pacific and Central Asia Report. Compared to 723 MW of PV demand in 2012, this represents a strong compound annual growth rate of 28%.

"Previously, most solar PV applications across the EAPCA region were based upon solar lighting applications or residential schemes," said Steven Han, analyst at NPD Solarbuzz. "However, future PV demand will be based upon widespread adoption of large-scale, ground-mounted PV installations. By 2017, the ground mount segment will account for 64% of all PV demand from the EAPCA region."

Solar PV demand across the EAPCA region remains highly fragmented and is characterized by a diverse range of policies and end-market drivers, which is consistent with PV industry adoption in other emerging markets. However, solar PV is well understood by policy makers in the EAPCA region, with the Southeast Asia region widely recognized as a leading hub for upstream manufacturing.

Solar PV demand across the region will be dominated by Thailand, Malaysia, the Philippines, Indonesia, and Taiwan. Between 2013 and 2017, these five countries will account for 50% of the cumulative PV demand forecast from the EAPCA region.

Thailand is forecast to be the region's largest market, driven by rapid growth in demand for electricity and the requirement to decrease its financial burden from imported energy. Short-term PV demand will emerge by executing on project pipelines accumulated from the previous Adder Support Scheme.

Indonesia has long-term plans for solar power to provide 0.3% of the national energy mix by 2025, equivalent to 1 GW of new solar demand. Indonesia is forecast to become the second largest solar PV market within the Southeast Asia region by 2017, supported by forthcoming feed-in-tariff incentives. Taiwan and South Korea have also prioritized solar PV within their renewable energy targets.

Over the next few years, a greater number of countries will contribute to overall PV demand from the EAPCA region. The Philippines accumulated more than 500 MW within its solar PV pipeline at the end of 2012, with strong investments coming from Japan and South Korea. Bangladesh has developed a large off-grid PV market with plans to install an additional one million solar PV systems by 2016. Kazakhstan is targeting 77 MW of solar power generation over the next few years, and Pakistan has announced over 500 MW of solar deployment.

"Although challenges will remain in securing adequate solar PV project financing, we forecast that overall PV demand from the EAPCA region will account for 5% of global PV demand by 2017, with the potential to reach 5 GW," concluded Han.

The NPD Solarbuzz Emerging PV Markets: Asia Pacific and Central Asia Report provides unique insights into the largest PV consumers, primary demand drivers, barriers to entry, and the most favorable market segments in this region. It also identifies key factors to succeeding in this market. The report is useful to module suppliers, balance of system suppliers, project developers, and other companies interested in this market. It provides critical information for creating a list of sales prospects, conducting competitive benchmarking, and developing an effective strategy for entering the market. For more information, contact us at one of our seven global locations, email us at contact@solarbuzz.com, or call Charles Camaroto at 1.516.625.2452 for more information.

About NPD Solarbuzz

NPD Solarbuzz, part of The NPD Group, offers Marketbuzz, Solarbuzz Quarterly, and annual downstream photovoltaic (PV) market reports, providing the solar energy and PV industries with global historical and forecast data for the PV supply chain. For more information, visit www.solarbuzz.com or follow us on Twitter at @Solarbuzz.

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, entertainment, fashion, food/foodservice, home, office supplies, sports, technology, toys, video games, and wireless. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.