The market research firm said that faster than anticipated growth in some international markets such as the Netherlands, Spain, Germany, Italy, Turkey, or Ukraine had reduced the growth risks associated with weaker demand in China. IHS Markit also remained bullish on the APAC region outside of China and several South American markets having greater upside potential for solar installations in 2019.
Hydropower Is Popular. Compared to wind and solar, hydroelectricity tends to go unnoticed. Many people assume they can only benefit from hydropower if they live near the ocean or a large body of water. Thanks to advances in energy distribution technology, however, many people can benefit from this form. So much so, in fact, that it has become the global leader of renewable generation. This means that more countries are turning to hydropower over wind and solar. While all forms of renewable energy sources are important, there’s something to be said for hydroelectricity.
As a result, global solar installations are expected to be around 129GW in 2019.
However, the market research firm has become increasingly concerned about the lack of visibility for strong global demand in the second quarter of 2020, compounded by the additional manufacturing capacity (cells and modules) expected to start ramping production in the first half of 2020.
The impact of weak demand and potential overcapacity could impact the entire supply chain and initiate another cycle of gross margin compression for the PV industry.