Examining BIPV market in North and Southeast Asia

Research and Markets has announced the addition of Frost & Sullivan’s new report "BIPV Markets in North and Southeast Asia" to its offering.

Thisresearch service analyzes the current market trends, revenuedistribution, key regulations, competitive structure, market drivers,market restraints, end-user analysis and market share analysis for thebuilding integrated photovoltaic market in North Asia and SoutheastAsia.

Market overview

Global Warming heats up BIPV market in North and Southeast Asia

Withglobal warming endangering several species of life and posing biggerpotential risks, there is an urgent need to curb its main cause –greenhouse gas (GHG) emissions. Clean energy technologies such as wind,solar, and biomass are gradually being promoted over conventional,GHG-emitting power sources.

Among solar energies, BIPV isbeing increasingly sought out by real estate companies and builders forits distributed power generating ability, especially in the urbanareas. Seeing that urban centers and cities are major power consumptioncenters and yet do precious little to cut back GHG emissions, high networth individuals and commercial buildings have begun to extensivelyendorse ‘green energy’ to ensure a clean environment.

"Growingawareness among various end-user segments coupled with abundantavailability of sunlight is fostering the growth of BIPV market incities," says the analyst of this research. "Solar energy integratedtownships and clean energy buildings are being extensively planned andsupported to highlight the savings in energy and measure carbon dioxideemissions."

Breaking out of the confines of rural areadeployment for distributed or centralized power generation, renewableenergy, especially BIPV, is gaining widespread acceptance among citybuilders. One of the main reasons for its popularity is its preventionof transmission and distribution (T&D) loss, as electricity isconsumed at the point of generation.

However, the BIPV marketstill has some ground to cover before it can aim for large-scalecommercialization in North and Southeast Asia. This is because buildersare put off by the high installation and generation costs, a minimumpay back period of six to eight years, and lack of an attractivefeed-in-tariff from the utilities.

For reasons of economicviability and low product awareness, builders and real estate companiesprefer to buy electricity from the utilities at a much cheaper ratethan invest in renewable energy sources.

Despite the hurdles,BIPV power generation has made a case for itself with its uniqueability to power mass applications in urban areas. While promotingenergy efficiency and low energy use in buildings, it also offersmulti-functional solutions for modern-day architecture.

Therefore,despite a slowdown in capacity additions, North Asia exhibits greatpotential for the commercial end-user segment. Among all the countriesin this region, Japan is the one that has best cashed in on theopportunities in the commercial and residential segments.

"Thewithdrawal of subsidies in 2005 has had a moderate impact on the growthof the BIPV market," notes the analyst. "Meanwhile, in South Korea, theintroduction of attractive feed-in-tariff in is likely to fuel thegrowth of centralized solar PV systems."

On the other hand,Southeast Asia holds promise for BIPV systems in both the residentialand commercial end-user segments, thanks to a strong push from thegovernment and solar subsidy programs. Malaysia has successfullydeployed BIPV systems and other countries are soon likely to follow inits footsteps.

Singapore trails close behind Malaysia in BIPVdeployment and installations in this country are forecast to increasefrom 2010 due to the introduction of the ‘Green Mark Scheme’ in theconstruction industry.

Evidently, it is vital to have solidgovernment backing in the form of long-term subsidies and incentives.An attractive feed-in-tariff and a robust policy framework is needed toprovide guidance to potential developers and end-users, while greaterawareness through frequent information dissemination on the technology,economics, and business models of BIPV installations will also go along way in buoying this market.

Reduced installation costsand integration in the industry are the other crucial factors that cankindle the interest of the industry stakeholders. This will alsoencourage R&D in BIPV systems’ designing and facilitate large-scalecommercialization of the technology.