Against
the backdrop of current developments within the photovoltaic markets,
including the introduction of a cap in Spain, reduction of the feed-in
tariff in Germany, the largest PV market, as well as the increasing
module surplus, market participants are searching for alternatives for
the future. A great deal of focus is being placed upon the off-grid
segment. Once, the most important market segment, the off-grid market
made up 90 percent of the total installed capacity worldwide. In recent
years, off-grid has become less important. Because of the present
developments within the market, regions like Africa, Asia or Latin
America are returning to the spotlight as areas of high potential.
According to Florian Schmidt, project manager of the study “Global
Off-Grid PV Markets”, published by EuPD Research, the leading market
researcher for solar energy, “The rapid population growth as well as a
high proportion of the rural population with no access to the grid is
causing the attractiveness of the technology to increase.” According to
estimations by Greenpeace, more than two billion people will receive
electricity from off-grid PV systems by 2030.
Study reports the highest development potential in Africa
In 1995, twenty-five percent of the photovoltaic capacity worldwide was
installed in Africa. Yet as the demand for photovoltaic applications
experienced dramatic increases in many parts of the world, it stagnated
in Africa. According to the new EuPD Research study, Africa is still
considered to be the continent with the highest potential for
development for off-grid PV – particularly South Africa, which in 2008
had an installed capacity of approximately 20MW. Small PV plants with a
power output of less than 100W make up more than 50 percent of the
market, according to survey participants. These plants are mainly
employed in rural regions by private customers. Off-grid plants are
also used for industrial applications like machine operation, water
pumps or desalination plants. Systems for public buildings such as
hospitals, schools and tourist facilities, as well as small mobile
systems like radios or mobile phones are also very important. Those who
participated in the study expect a further increase in the near future
particularly within the segment of small plants in the private or
public sector; by 2012 this sector is expected to have a market share
of 75 percent. Moreover small mobile applications as well as PV systems
for infrastructure are likely to gain importance in South Africa.
Overcoming the challenges
The results of the study show that prices for PV modules and PV systems
in Africa, Asia and Latin America clearly exceed those for on-grid
technology in Europe – in Asia and Latin America the price difference
is more than 20 percent. It is caused primarily by difficulties in
distribution in the various regions and the small number of
intermediaries. “The purchase power of the population within the
analyzed countries is clearly less than in industrial nations. In order
to make it possible for the population to use PV plants, several
financing instruments must be made available, from micro credits, to
micro leasing or social programs”, says Florian Schmidt. With the help
of off-grid PV-based electric supply or hybrid systems, the framework
for the sustainable development of the economy could be built up in
disadvantaged regions. What is required is the creative use and
optimization of financing options, an increase in awareness of off-grid
photovoltaics, and also making low-priced, high-quality and
customizable photovoltaic plants available.
About the study
For the new study “Global Off-Grid PV Markets” EuPD Research
(eupd-research.com) identified the key regions relevant to the
technology, and evaluated them using specific criteria including:
purchase power of the population or public promotion for off-grid
photovoltaics. Next, 46 interviews with wholesalers, system providers,
turnkey providers and installers from the key regions Africa, Asia and
Latin America were completed to obtain statements regarding framework
conditions, market segmentation as well as market drivers and
hindrances. Interviews with module and inverter manufacturers of
off-grid PV applications were also conducted. The result is the first
comprehensive primary data-based study of the global markets for
off-grid photovoltaics.