SAN FRANCISCO, USA (Commodity Online): With the rapid growth of solar photovoltaic (PV), silver demand is set to shoot up as it is one of the key raw materials used in solar energy applications. According to Solarbuzz, a market research group focussed on solar energy, both US and Asia Pacific markets for solar PV applications are set to witness tremendous growth in the coming years.
The US PV market has achieved tremendous growth despite a struggling economy and is poised to double its turnover in 2011. The US growth in solar and energy has been supported by government incentives and policies aimed at promoting clean technology and dependence on fossil fuels. The US is forecast to become the third-largest solar photovoltaic market behind Germany and Italy in 2011, according to Solar Buzz, a market research group focussed on solar energy.
Asia Pacific photovoltaic markets are set to grow rapidly and are projected to account for approximately one-quarter of global demand by 2015, up from 11% in 2010, according to the latest Asia Pacific Major PV Markets report from Solarbuzz. The top five markets in this region—China, Japan, India, Australia, and South Korea—are projected to account for 3.3 GW of demand in 2011, with China and Japan leading the region
One of the key raw materials used in solar energy applications is silver and industrial demand for silver comes mainly from rising electronics, information technology and PV markets, according to analyts.
Total fabrication demand grew by 12.8 percent to a 10-year high of 878.8 Moz in 2010; this surge was led by the industrial demand category, according to The Silver Institute. Last year, silver’s use in industrial applications grew by 20.7 percent to 487.4 Moz, nearly recovering all the recession-induced losses in 2009, and is now seeing pronounced advances in 2011.
"Silver paste is used in 90 percent of all crystalline silicon photovoltaic cells, which are the most common type of solar cell. Around the world, solar arrays are being tested for large and small-scale electricity production. In Europe, photovoltaic systems commonly are used to power private homes and local businesses. South Korea is constructing photovoltaic electric power plants to provide significant sources of electricity for the nation’s power grid. In the United States, nationwide stores such as Macy’s and Wal-Mart are installing photovoltaic systems on the roofs of their buildings to contributing up to 40 percent of their power needs. Photovoltaic systems are simple and provide immediately useful power with no pollution," according to Silver Institute.
Silver is used in another way to generate electricity by reflecting and concentrating solar energy onto collectors containing salts which are used to run generators. Near Barstow, California, for example, 1,926 silver-coated mirrors reflect solar heat onto black-coated stainless steel tubes atop a 300-foot tower. This heats the tubes and the nitrate salt inside them to over 1050 degrees F. The scalding hot salt is then piped to boilers, turning water to steam which drives steam turbines that run electric generators. They generate electricity to power 10,000 homes.
Currently, US PV market accounts for 5% of the global market and Solarbuzz projects an increase to 12% by 2015 thanks to recent fall in prices of PV equipments. “With rapid declines in factory gate prices over the past eight weeks as manufacturers and distributors focus on depleting module inventories, demand has picked up across residential, corporate and government segments,” noted Craig Stevens, President of Solarbuzz. “This acceleration is being supplemented by explosive utility demand and the rush to install before federal cash grants are scheduled to expire at the end of the year.”
Within the next five years, Solarbuzz forecasts the market will grow to up to 6.4 GW depending on the scenario, representing a CAGR of up to 47%. The extension of the Treasury Cash Grant beyond the end of 2011 will be critical to keep fueling demand in the United States, according to Solarbuzz United States PV Market report.
According to the Silver Institute, industrial applications demand constitutes the major market for silver and it has risen from 349.7 mn ouncesin 2001 to 487.4 mn ounces in 2011 whereas photography demand has steeply fallen from 213.1 mn ounces to 72.7 mn and jewellery fabrication demand has fallen from 174.3 mn ounces to 167.0 mn ounces in the last decade.
Silver inks and pastes and various hybrid materials are used in PV; materials such as transparent conductive silver-containing composites. However, silver faces threat from the increased use of thin film PV (TFPV) but with the end of the silicon shortage, crystalline silicon, for which silver is the dominant electrode material, seems less threatened by thin film PV (TFPV) than it did a year or so back.Hence it augurs well for silver, an analyst said.
