Solar Power Generation Capacity May Double in 2010

New solar power generation may double next year, recovering from low capacity utilization caused by the global financial crisis, as China and the U.S. increase demand for clean energy, a fund manager said.

Asian ventures led by Suntech Power Holdings Co., Trina Solar Ltd. and Canadian Solar Inc. may benefit as 10 gigawatts of electricity produced from the sun is added in 2010, from an estimated 6 gigawatts this year, said Thiemo Lang, portfolio manager at the 230 million euros ($324 million) SAM Smart Energy Fund.

New investments in clean energy may surge to $450 billion in 2012 from $150 billion in 2007 as the U.S. and Europe step up efforts to reduce emissions, Nomura Securities said. China may boost solar capacity to 10 gigawatts by 2020, enough to supply about 10 million U.S. homes, from 1.8 gigawatts now, according to the Chinese Renewable Energy Industries Association.

There are more opportunities to invest in Asian solar businesses compared with wind power makers as the industry has turned mature, Lang said. New wind generation capacity may expand by about 18 percent in 2010 with growth in newly installed capacity expected to be flat this year. The world added 27 gigawatts of wind power capacity in 2008.

“There are not many opportunities to invest in Asian wind companies as in solar makers,” Lang said. “Solar industry can reduce costs quite dramatically while wind turbine costs do not decline at the same pace,” he said. Electricity produced from wind and solar projects account for less than 2 percent of the global output.

Bloomberg