US-based First Solar delivered on expectations in 2013 to become the leading engineering, procurement and construction (EPC) company in the global photovoltaic (PV) industry, even though it is likely to be surpassed in 2014 by China-based EPC TBEA SunOasis, according to IHS.
First Solar installed a total of 1.1GW of solar capacity in 2013, up from 516MW. In comparison, runner-up TBEA SunOasis installed 1GW, up from 250MW. But with SunOasis projected to attain 1.5GW of installations in 2014 compared to First Solar's 1.3GW, TBEA SunOasis has the potential to sail to the top among global PV integrators.
"After a strong year of installing 22% of the non-residential PV capacity in the US and Canada, First Solar remains focused on North America," said Josefin Berg, senior analyst for solar demand at IHS. "Large-scale projects in the US will make up around 93% of the 1.3GW worth of additions in 2014."
These projects, Berg said, were acquired in early-stage development and are now being constructed and sold primarily under US investment tax-credit policies. To mitigate the risks that arise from dependence on one market, First Solar is building up a global project pipeline through acquisitions and joint ventures, with the company now also claiming 1GW pipelines each in Latin America and the Middle East.
"After 2015, depending on the evolution of solar support in the US, First Solar risks slower growth in PV system integration," Berg noted. "And while the development pipeline in emerging countries has given the company a good start, it will be much more challenging to pursue than home-based projects in the US"
Meanwhile, TBEA SunOasis is thriving on China's rapidly growing domestic market, and its installations of 1GW in 2013 accounted for 10% of that country's non-residential PV additions. In 2014, the power equipment manufacturing group will continue growing its PV systems business, with expected additions to reach as high as 1.5GW. While focusing on utility-scale opportunities in China, TBEA is also involved in power projects in markets such as Pakistan, where it is undertaking the construction of a 100MW PV plant in 2014 and 2015, IHS said.
"TBEA's global reach as a power equipment provider opens up possibilities for EPC contracts in new PV markets," Berg remarked. "But because the China domestic market will grow by 31% in 2014, TBEA is also set to keep its systems business growth focused on China."
Global PV project pipeline at 140GW and growing
The IHS Global PV Project Database, which consists of nearly 30,000 projects, shows that the global PV pipeline has now reached 140GW, up 5GW since February 2014. Of the 140GW in the pipeline, 21GW are either under construction or have signed power purchase agreements (PPA), with the remaining projects at various levels of planning.
"It is obvious that a large chunk of these pipeline projects will never be built," Berg said. "Developers have to compete for PPAs, grid access, permits, and not least-financing. What is important, however, is that IHS can spot those countries where PV deployment can take off quickly given the right conditions."
With 34GW of announced projects in planning and 5GW under construction, North America boasts the largest PV pipeline. This is due to both the large number of projects involved and the size of the projects proposed. The average size of the projects in the database equates to more than 25MW, with over 80 projects that are 100MW or larger in development.
Latin America, meanwhile, has the largest pipeline of PV projects in comparison to its installed capacity, with nearly 15GW of projects in development. This includes a pipeline of more than 4GW in Brazil and 7.5GW in Chile, added IHS.
