The solar industry is expected to rise above the current issues related to overcapacity in the near term, and could emerge as a sector that is more cost-competitive and driven more by the market forces and less by government incentives.
These comments were made at the second PV Asia Pacific (PVAP) Expo & Conference, which was held as part of the Singapore International Energy Week today.
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(Picture credit: EMA)
In his opening address, Senior Minister of State for Trade & Industry, Lee Yi Shyan, noted that with rising energy costs and increasing concerns over the environment, countries around the world have become more serious in their efforts to develop clean and renewable energy options, including solar energy.
"Current economic uncertainties notwithstanding, Asia's steady adoption of solar energy will make the continent a large adoption site for solar power. In the coming years, China and India are expected to be among the countries with the fastest growth in solar photovoltaic (PV) capacities, while Southeast Asia is emerging as a new growth market for solar PV," he said.
Building on this theme, Prof Armin Aberle emphasised the urgency and importance of diversifying energy solutions beyond fossil fuels such as coal, oil and natural gas. The CEO of the Solar Energy Research Institute of Singapore (SERIS) at the National University of Singapore is Chairman of PVAP 2012.
Still, the solar industry will experience headwinds in the near term. Overcapacity in the solar market in recent years has caused prices to fall dramatically, affecting the revenues of solar companies.
There may yet be a silver lining. Dr Shi Zhengrong, President of the Asia Pacific Solar Industry Association (APIVA), pointed out that the declining price for solar modules could lead to more cost-competitive solar energy.
According to him, three major shifts in the PV industry have been observed. Firstly, the future demand for solar PV will be driven more by the market and less by government incentives. Secondly, innovation will be key to driving down costs. Thirdly, Asia will drive growth in the area of solar PV.
Dr Shi stressed that the solar industry looks to be at a crossroads, but has a future with new markets and more efficient and cost-competitive technologies to look forward to.
Here in Singapore, initiatives are underway to facilitate the development of innovative solar energy solutions suitable for highly-urban environments. Recently, Panasonic partnered with the government to install solar panels on existing public housing buildings and integrate its Home Energy Management System in Punggol eco-town.
Separately, the Solar Energy Research Institute of Singapore (SERIS) will work out a technology roadmap to identify promising solar PV options best suited for Singapore. The Institute is also collaborating with the Energy Research Institute @ NTU (ERI@N) on thin-film solar cell technology to improve its current efficiency levels.
BY : Yeo Yong Kiat and Rebecca Gu, EMA