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Research, Solar Cell Production and Market Implementation of Photovoltaics Arnulf Jger-Waldau 2006EUR 22346 EN PV Status Report 2006 PV Status Report 2006 Research, Solar Cell Production and Market Implementation of Photovoltaics August 2006 Arnulf Jger-Waldau European Commission, DG Joint Research Centre, Institute for Environment and Sustainability, Renewable Energies Unit Via Enrico Fermi 1; TP 450 I ¨C 21020 Ispra, Italia EUR 22346 EN Front cover:Artwork by Jennifer Rundle LEGAL NOTICE Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use, which might be made of the following information. The report does not represent any official position of the European Commission, nor do its contents prejudge any future Commission proposals in any areas of Community policy. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu). Luxembourg: Office for Official Publications of the European Communities, 2006 ISBN 92-XXXXXXXX European Communities, 2006 Reproduction is authorised provided the source is acknowledged Printed in ItalyPREFACE Record oil prices and speculations whether the oil price would peak at $ 105 in 2010 or whether it would be well above has become a reality in 2005. This development has shifted the focus to more abundant fossil energy resources like gas and coal. However, the Gas Crisis at the beginning of 2006 has demonstrated that Europe is still highly vulnerable with respect to its total energy supply. A possible solution is the diversification of supply countries as well as the diversification of energy sources including renewable energies and Photovoltaics. At the same time, the need to stabilise atmospheric greenhouse gases in the 450 to 550 ppmv range leads to the necessity to decarbonise our energy supply. Photovoltaics is a key technology option to realise such a shift. The solar resources in Europe and world wide are abundant and can't be monopolised by one country. Regardless for what reasons and how fast oil price and energy prices will increase in the future, Photovoltaics and other renewable energies are the only ones to offer a reduction of prices instead of an increase in the future. In 2005, the photovoltaic industry production again grew by almost 50% reaching a world-wide production volume of 1,759 MWp of photovoltaic modules and has become a € 9 billion business. Yearly growth rates over the last five years were in average more than 40%, which makes photovoltaics one of the fastest growing industries at present. Business analysts predict the market volume to increase to € 40 billion in 2010 and expect rising profit margins and lower prices for consumers at the same time. All market players expect that in the long-term the growth rates for photovoltaics will continue to be high, even if political or economic frame conditions could lead to a short-term slow down of the growth rates. To maintain this growth continuous introduction of new technologies, made possible by sound fundamental research, has to take place. The ongoing shortage in silicon feedstock, triggered by the extremely high growth rates of the photovoltaics industry over the last years is providing a window of opportunities for the accelerated introduction of advanced production technologies, thin film solar modules and technologies like concentrator concepts. The Fifth Edition of the ¡°PV Status Report¡± tries to give an overview about the current activities regarding Research, Manufacturing and Market Implementation. I am aware, that not every country and development is treated with the same attention, but this would go beyond the scope of this report. Nevertheless, I hope that this report will be a useful overview about the situation world-wide. The opinion given in this report is based on the current information available to the author, and does not reflect the opinion of the European Commission. Ispra, August 2006 Arnulf Jger-Waldau European Commission Joint Research Centre; Renewable Energies Unit