Europe is set to lose its dominant position in the global solar photovoltaic (PV) market as policies and market dynamics change, according to the European Photovoltaic Industry Association (EPIA).
The EPIA's latest market analysis shows that although 2012 was another strong year for European PV companies, installations in 2013 will drop and the majority of new PV capacity in the world will be installed outside of Europe.
"The results of 2012 signal a turning point that will have profound implications in the coming years," said EPIA President Winfried Hoffmann. "The global PV market is shifting from one driven mostly by Europe to one that also depends on countries around the world with varying degrees of solar potential and the political will to exploit it."
EPIA says that 31.1 GW of new PV capacity was installed globally in 2012, up from 30.4 GW in 2011. Europe installed 17.2 GW of new PV capacity in 2012, down from 22.4 GW in 2011, leading its share of the world market to fall to 55 per cent.
Germany was the top market globally in 2012, installing 7.6 GW, followed by China, Italy, the USA and Japan. Weak economic conditions in Europe coupled with a lack of political will to push renewable energy technologies will dampen growth in 2013, says the report from the EPIA.
A looming solar trade dispute between Europe and China could also disrupt the European PV market. The Financial Times has reported that the EU could impose duties of up to 40 per cent on imports of Chinese PV products.
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