Solar Cell Investments to Reach Parity with Semiconductor Industry by 2010, Says iSuppli
Nikkei Electronics Asia, Jun 24, 2008
Source: Tech-On
http://techon.nikkeibp.co.jp/english/NEWS_EN/20080624/153764/
Worldwide investments in the production of photovoltaic (PV) cells will rise to the same level as those for semiconductor manufacturing by 2010, due to booming demand for solar energy, according to iSuppli Corp. Global production of PV cells is expected to rise to as much as 12GW by 2010, up from 3.5GW in 2007. By 2010, as many as 400 production lines in the world that can produce at least 1MW of PV cells per year will be in place, representing a 4-fold increase from about 90 to 100 production lines in 2007. Factories capable of 1GW annual PV production also will be established to ensure continued strong delivery of PV cells to the market.
According to Dr Henning Wicht, senior director and principal analyst, MEMS and photovoltaics for iSuppli, the market for PV cells is estimated to grow by 40% annually until 2010, and 20% beyond, whereas nearly all market participants plan to increase their sales by a compound annual growth rate (CAGR) of 40 to 50% during the next few years. Wicht noted that heavy investments will be required to finance the expansion of PV cell production. Each PV factory will require an investment of US$500 million and more, employ as many as 1,000 workers per site, and will generate annual revenue of US$1 billion per year or more, putting them into the size, cost and employment range of semiconductor fabs.
According to Wicht, growth of the PV market is driven by several factors. While the high oil price and surging energy prices fuel the demand for solar power in the short term. Projections show the world will need 3 to 4 times more electrical power over the next 50 years to support continued growth in population and economic output. And by 2100, 80% of energy must be generated from renewable sources.