With over 5 GW of power purchase agreements (PPAs) currently under contract through 2015, U.S. utilities are becoming a key driver of future growth for the global PV industry. These utilities are claiming their position as the industry’s next critical demand center with state renewable portfolio standards (RPS) looming and global PV players shifting their sights from saturated European feed-in tariff markets to the large-scale potential of the U.S. PPA market.
At over 160 pages with more than 120 data-rich exhibits, The U.S. Utility PV Market: Demand, Players, Strategy and Project Economics Through 2015 examines in detail the current state of the sector with an eye toward future development, supply, economic and regulatory conditions. The report considers utility procurement strategies, developer and supplier positioning, regulatory influence and project economics within utility territories.
“Utility PV in the U.S. is a $1 billion market in 2010 and is projected to reach $8 billion by 2015,” said Shayle Kann, the report’s author and GTM Research’s Managing Director of Solar Research. “Solar industry players across the value chain have taken note, flocking to the market en masse to take advantage.”
At present, U.S.-based First Solar holds more than 40% of all contracted PPA capacity in development nationwide, with other U.S.-based developers SunPower, Sempra Generation, LS Power and SunEdison combining for an additional 22% of contracted capacity. While these domestic developers represent first movers in the market, global players are looking for a foothold -- and employing a variety of strategies to achieve it.
“Foreign entrants like Iberdrola Renewables and juwi solar, with robust PV portfolios abroad, are parlaying their experience to earn utility market share stateside,” said Kann. “In addition, PV manufacturers such as Sharp, Solyndra, and GCL Solar are seeking their own entry into the project development market, often as an opportunity to secure sales channels for their own products.”
While all of this makes for a vibrant U.S. utility market, the sector is still nascent, with less than 250 MW currently operating and a number of challenges looming in the coming years. Financing bottlenecks caused by slow economic recovery and the potential non-extension of the U.S. Treasury cash grant will be an obstacle to timely project completion. In addition, competitive PPA bidding processes have led to contracts being signed at untenable price points for project developers. These projects will rely heavily on stark PV price declines over the coming years in order to reach completion.
examines in detail the factors that will contribute to making the U.S. utility PV market a $8 billion per year sector by 2015, which include utility procurement strategies, developer and supplier positioning, regulatory influence and project economics within utility territories.
Visit the report website here for more information on the report's content.Value-Added Elements
· State profiles and demand forecasts by state through 2015
· Detailed analysis of utility procurement strategies
· Competitive analysis of project developer trends and market shares
· Current and forecasted project LCOE by technology and state
· Project barriers and potential consequences for utility marketQuestions for Competitive Decision-Making
· Beyond California, which state markets offer the greatest development opportunity?
· Which utilities will procure the most PV over the next five years?
· How are acquisitions altering the project developer landscape?
· Which developers will lead the market in coming years?
· When will PV become cost-competitive with natural gas?
· How can PV suppliers serve the utility PV market?
The U.S. Utility PV Market: Demand, Players, Strategy and Project Economics Through 2015
contains critical intelligence for consultants, market analysts, investment, and solar industry professionals. You can learn more at the report's website: www.gtmresearch.com/report/us-utility-pv-market-2015