SOUTH AFRICASOLAR POWER MARKET -BY PHOTOVOLTAICS

Market Shares, Forecasts& Trends

2014 - 2019

mordorintelligence.com

TABLE OF CONTENTS

1 Introduction

1.1 Report Guidance

1.2 Markets Covered

1.3 Key Points Noted

2 Executive Summary

2.1 Overview and Market Scenario

3 South Africa Solar Energy Market Outlook

3.1 By Installed Capacity, Historic and Forecasts

4 Market Dynamics

4.1 Drivers

4.1.1 Increasing Energy Demand

4.1.2 Environmental Friendly

4.1.3 Low Maintenance cost

4.1.4 Applications in Various Sectors

4.2 Constraints

4.2.1 High Initial Costs

4.2.2 Intermittent Energy Source

4.2.3 Large Areas Required to setup solar farms

4.3 Opportunities

4.3.1 Scope for New Technology Innovations

5 South Africa Solar Energy Market Analysis

5.1 Overview

5.2 Market Opportunities

5.3 Policies and Regulation

6 South Africa Solar Energy Market Analysis, by Type

6.1 Concentrating type

6.2 Non Concentrating type

6.3 Fixed Array

6.4 Single Axis Tracker

6.5 Dual Axis Tracker

7 South Africa Solar Energy Market Analysis, by Materials

7.1 Crystalline Silicon

7.2 Thin Film

7.3 Multijunction Cell

7.4 Adaptive Cell

7.5 Nanocrystalline

7.6 Others

8 Major Companies Market Share Analysis

8.1 by Geography

8.2 by Capacity

8.3 by Equipment

9 Competitive Landscape

9.1 Deal Summary

9.1.1 Acquisition

9.1.2 Private Equity

9.1.3 Equity Offerings

9.1.4 Debt Offerings

9.1.5 Partnerships

9.1.6 Asset Transactions

9.2 Recent Developments

9.2.1 New Technology Innovations

9.2.2 New Contract Announcements

10 Key Company Analysis

10.1 Wuxi Suntech Power Co., Ltd.

10.2 First Solar Inc

10.3 Juwi Solar, inc.

10.4 SolarCity Corporation.

10.5 Activ Solar GmbH

10.6 Yingli Solar

10.7 Trina Solar Limited

10.8 Sharp Solar Energy Solutions Group

10.9 Canadian Solar Inc.

10.10 JinkoSolar Holding Co., Ltd.

11 Appendix

11.1 Sources

11.2 Abbreviations

11.3 Market Definition

11.3.1 Methodology

11.3.2 Coverage

11.3.3 Secondary Research

11.3.4 Primary Research

11.3.5 Expert Panel Validation

11.4 Contact Us

11.5 Disclaimer

RESEARCH METHODOLOGY

The research methodology can be summarized in the following sequence:

1) Secondary Research: Information collected from a number of public and paid data sources. Public

databases, company annual reports (if any), white papers and research publications by recognized solar

industry experts have been utilized. Paid data sources include authentic energy databases.

2) Primary Research: After collecting data from secondary sources, primary interviews were conducted

with stakeholders at different points of the value chain like manufacturers, end users and key opinion

leaders of the sector in South Africa. Primary research was used both to validate the data points

obtained from secondary research and to fill the data gaps after secondary research.

3) Market Engineering: The market engineering phase involves analyzing the data collected, market

breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are

used to arrive at a complete set of data points that give way to valuable qualitative and quantitative

insights. Each data point is verified by the process of data triangulation to validate the numbers and

arrive at close estimates.

4) Expert Validation: The market engineered data is verified and validated by a number of experts, both

in-house and external.

5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the analysts

begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the

entire ecosystem in a single report.

4.1 DRIVERS

4.1.1 INCREASING ENERGY DEMAND

The appetite for energy sources is growing dramatically, with worldwide energy consumption is

projected to increase by more than 40 per cent by 2035. The growing demand is fuelled by population

which is predicted to increase 25 per cent in the next 20 years. With most of that growth in countries

with emerging economies, such as China and India. Rising energy demand from economic output and

improved standards of living will likely put added pressure on energy supplies. For example, in China

alone, demand is expected to increase by 75 percent by 2035.

Globally, the investors are looking in to alternative and renewable energy resources to meet this ever

growing demand and to achieve energy efficiency. Renewables-such as solar, cellulosic biofuels, geo

thermal energy will provide new raw materials for fuels, new sources for power and new benefits for the

environment.

4.1.2 ENVIRONMENTAL FRIENDLY

Solar energy is considered environmentally friendly because the sun is a natural energy source that

does not require the burning of fossil fuels and the associated air emissions. In addition, it is considered

renewable since the energy produced from the sun does not deplete any natural resources, and will

never run out.

The environmental impact and safety risk associated with the manufacture of solar cells is negligible

compared with conventional energy sources such as coal, oil and nuclear power. Especially the silicon

that is used almost exclusively in the manufacture of solar cells today is completely harmless.

New technologies, such as cadmium-telluride or copper-indium-diselenide solar cells, do not pose any

significant environmental risk either, compared with other energy supply options. Moreover, the

manufacturing processes for solar cells are highly sophisticated and thoroughly tried and tested. Even

the mass production of solar cells will not pose any environmental or health risks from a chemical-

toxicological point of view.

The sun energy or solar energy can be converted into electricity. This solar energy is cleaner than the

electricity produced by coal fired power generation, it does not emit carbon to the atmosphere that

effecting global warming or split pollution to our Earth that threatening our health.

However the main advantages of using solar power as an energy source are:

Avoiding natural resources depletion

Avoiding carbon emissions

Avoiding pollution

4.1.4 APPLICATIONS IN VARIOUS SECTORS

There is a vast potential for use of solar energy devices / systems in industries for process heat and

other thermal applications. Presently, energy for these applications is being met mainly through fuel oil

which is not only import dependent but is also creating huge GHG emissions in atmosphere resulting

threat to our planet.

Solar water heating is a well established technology and is in promotion worldwide. It can be used in

industries for boiler feed applications in raising water temperature from 25 to 80 C and thereby saving a

substantial amount of fuel oil being used in boilers.

Solar air heating systems based on flat plate collectors have been found to be useful in food processing

industries for drying of various food products. These industries generally require hot air at low

temperature (50-800C) as process heat for drying of products such as tea leaves/ coffee beans, and

also for processing of fruits, spices, cereals, vegetables, fish, seafood etc. Hot air is also required in

industries such as leather, textiles, chemicals, rubber, paper, pharmaceuticals etc.

Solar Lighting is another application of solar photovoltaic. Solar Lighting has many types. The solar

lighting can be solar street lighting, solar flood lighting, solar garden lighting or some special

applications of lighting. In solar lighting, very important thing is the designing of solution so that the

lights work automatically and remain on as per requirement.

Solar power for telecommunication networks is another application for solar photovoltaic. The

telecommunication BTS towers have power supply from Diesel Generators in areas where no grid is

available and have back up diesel generators where grid is available. Operational Expense of power

generator is very high. The best replacement of the diesel back up is the solar power which is clean

energy. These systems can be hybrid (solar and wind) where wind is available.

Solar power for remote surveillance and terminal units is another application of solar pv. In Oil and gas

production and processing plants, the parameters are controlled and monitored remotely through

remote computerized terminal units. In surveillance systems, mostly the monitoring is remote and solar

power application in this area is very reliable and cost effective.

5. SOUTH AFRICA SOLAR ENERGY MARKET ANALYSIS

South Africa’s solar power industry is developing. The South African region has sun shine throughout

the year. The annual 24-hour global solar radiation average is about 220 W/m2 for South Africa

compared with about 150 W/m2 for parts of the USA, and about 100 W/m2 for Europe and the United

Kingdom. This makes South Africa's local resource one of the highest in the world. Most areas in South

Africa average more than 2500 hours of sunshine per year, and average solar-radiation levels range

between 4.5 and 6.5kWh/m2 in one day. Making it one of the interesting prospect for investors.

South Africa has a high level of renewable energy potential and presently has in place a target of 10,000

GWh of renewable energy. At first glance, South Africa appears to be on the brink of an explosion in

solar installations. While 2012 installations amounted to only 40 megawatts, a combination of high

levels of solar irradiation, high electricity costs, and a government push toward more renewable energy

generation is likely to quickly expand solar power generation.

The use of solar energy is very simple and the most readily accessible resource in South Africa. Solar

power itself has a number of applications in the country. There are number of companies which are

slowly stepping in to manufacturing solar power components or solar production business, making

investors and the government to actively evaluate the country’s solar power production capabilities.

The South African government is keenly interested in developing the solar power industry. Recently, a

pilot program has been launched to establish a number of public-private partnerships with their

respective municipalities to provide electricity services on an integrated and more regular basis. The

kind of this system is one such kind that where in the service provider will own and maintain the

systems, allowing longer-term financing to ameliorate monthly payments. It will provide the service

against a monthly fee.

Though developing and semi-established, the industry is experiencing few set-backs. Once all these

issues were sorted out, the system and the process will be expanded to rural areas. Solar power is

increasingly being used for water-pumping through the rural water-provision and sanitation programme

of the Department of Water Affairs and Forestry.

Currently, the solar water heating system has been installed over 3, 30, 00 m2 across the country. Major

portion of it will be occupied by swimming pools - 3, 27, 000 m2 (middle to high-income), commerce and

industry – 45, 000 m2 and agriculture 4, 000 m2.

Recently, the South African government launched Renewable Energy Independent Power Producer

Program (REIPPP), which takes of allocations to various companies and budget spending. The IPP

procurement program has been designed so as to contribute towards the target of 3,275 MW and

towards socio-economic and environmentally sustainable growth, and to start and stimulate the

renewable energy industry in South Africa.

Figure 17: South Africa Solar Power Market Trend, by Installed Capacity

2014 2015 2016 2017 2018 2019 2020 2025 2030

MW

South Africa Solar Power Market Trend, by Installed Capacity

Installed Capacity

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