According to the latest edition of the 2020 Solar Powering Taiwan: Special Report, published by the EnergyTrend research division of TrendForce, the Taiwanese PV market reached newly installed capacity of 1,411MW in 2019, which was 94% of the way to meeting its 1.5GW goal. Taiwan’s newly installed capacity in 2019 set a record since the market’s inception, in addition to landing it in the global GW-club.
TrendForce Assistant Research Manager Sharon Chen states that the competition between EPC suppliers (that is, downstream PV system providers) intensified as various ground-mounted PV projects started to take place.
For EPC suppliers, securing these ground-mounted projects is the key to gaining a competitive advantage in the industry. At any rate, the competition is expected to clear up in 2021. In the 2019 Taiwanese EPC market, Chailease emerged as the market leader, continuing its pole position from 2018, ranked by yearly grid-connection capacity (also known as COD, or commercial operation date, capacity). Of particular note, this market ranking does not distinguish between pure-play developers and power plant operators.
Chailease maintained its efforts on solar power purchasing agreements (PPA), with a chief focus on roof-type projects, while branching out to other types of PV developments. Remarkably, however, Chailease has not as of yet undertaken any large-scale ground-mounted PV projects, which it is projected to start developing in order to maintain its market competitiveness. Vena Energy, on the other hand, benefitted from the successful grid connection of its large-scale ground-mounted PV projects and ranks second on the list.
The 10 largest EPC suppliers in Taiwan accounted for about 40% share of the domestic PV market in 2019, with only Chailease occupying over 10% of the market. On the other hand, up to 50% of small-scale and medium-scale system suppliers in Taiwan individually produces yearly installed capacity from 2MW to 20MW. These providers are key to securing Taiwan’s status as a GW PV market.
Looking towards the rest of 2020, Sharon Chen indicates that various regional markets around the globe have postponed their grid connection deadlines one after another, with Taiwan postponing its deadline by two months. In light of these developments, the peak installation period for the global PV market this year is projected to begin in mid-3Q20, whereas PV module and raw material supply chains are expected to see gradual improvements in May regarding supply interruptions.
