"The solar power business is bracing itself for a collapse in prices" [View All]

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http://www.ft.com/cms/s/0/0b7c6972-303d-11dd-86cc-000077b07658.html?nclick_check=1

Silver lining in solar power storm clouds

By Fiona Harvey in London and Richard Waters in San,Francisco

Published: June 2 2008 03:00 | Last updated: June 2 2008 03:00

The solar power business is bracing itself for a collapse in prices that could lead to a shake-out in one of the most promising areas of the renewable energy sector.

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According to Dean Cooper, analyst at Ambrian, the global capacity for production of photovoltaic equipment - the biggest section of solar power technology which converts sunlight directly into electricity - is set to increase "dramatically", from 3 gigawatts last year to 15 to 20 gigawatts of production in 2010. Much of the growth is coming from China.

Prices for solar components would drop from about $3.80 per watt to about $1.40 a watt by 2010, he said. That could prompt consolidation in the sector within the next six months, with smaller players falling prey to longer established companies.

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