Prospects for the procurement market

The procurement market of the solar industry has changed significantly over the last twelve months:
  • Module prices slumped, intensifying competition and prompting consolidation among module manufacturers.
  • European manufacturers were confronted by an aggressive pricing policies of Asian module manufacturers.
  • However, project development companies were able to benefit from favorable procurement prices and, consequently, to pass on the lower system costs to their customers.
The future development of the procurement market will depend on how fast module manufacturers will be able to reduce their production costs in the future. Asian manufacturers and leading manufacturers of thin film technology have a decisive competitive advantage due to their price advantage.
The Photovoltaic Industry Association (EPIA) expects thin film technology to provide about 25 percent of the global module supplies by 2013, increasing from 18 percent in 2009.,Deutsche Bank analysts believe that besides US producers of thin film modules, Asia’s leading module manufacturers will benefit most from the consolidation process.

In addition, political discussions in Germany about the extraordinary reduction of the feed-in compensation have led to uncertainty among module manufacturers. If demand for modules declines, as a consequence of the cuts, enormous pricing pressure may be forced.It is likely that new perspectives on the procurement market will open up or uncertainties will be resolved in the upcoming six months, Hence the market will have the chance to settle down.
image: module
 
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