Aug 26 2010
A new topical study by Frost & Sullivan, a market research company, titled Overview of the Investment Attractiveness of Selected Parts of the Value Chain: Wind and Solar Power Markets, indicates that certain constituents required by the solar and wind industry will allow setting up of new component industries as the production requirement for such constituents in the near future is expected to surpass the current production capability.
The report indicates the current trend initiated by most of the US and Europe based manufacturing industries in setting up manufacturing facilities in cheap labor countries in Asia.. The report enumerates the advantages available to the manufacturers where the demand for clean energy products is growing exponentially. While cautioning the new entrants about those products that require in- depth technical know how and manufacturing experience, the report also details those product markets where the new entrants can gain quicker experience in manufacturing products of the value chain.
The report cautions the new entrants about some of the major constraints, such as lack of or withdrawal of fiscal support from the government with deficit budgets, and in grown up markets such as Europe. The report cautions the manufacturers about manufacturing in excess than required in such markets and reiterates the need for re-equilibrating the scenery of global energy markets by creating newer markets for the diversification of products.
Alina Bakhareva, Renewable Energy Research Manager in Frost & Sullivan, indicated that rapid growth in solar and wind power installations aided by government support led to the scarcity of critical components and the companies were able to manage the demand by postponing some of the installations. He added that the current post recessionary development is expected to push the manufacturers to expand their manufacturing to meet the growing requirements.