GTM Research expects more acquisition activity in booming solar O&M market

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

The continued expansion of utility-scale PV power plants in key global markets is fuelling the growth in the operations & maintenance (O&M) ancillary market, according to a new joint report from GTM Research and SoliChamba Consulting. The growth is expected to lead to further acquisition activity. 

The new report highlights that the global PV O&M market should surpass 88GW in 2014 and dominated, not surprisingly by China with over 10GW installed last year and at least 13GW expected to be installed in 2014.

However, the US is also a major market for O&M services, according to the report, which it expects to be the second-largest addressable utility-scale PV O&M market in 2018 with 31GW. 

But the report also acknowledges that the expected growth is going to be front-loaded between now and through 2016, as the planned drop of the federal Investment Tax Credit (ITC) is expected to lead to a fall in PV power plant construction in 2017 and 2018.

“O&M is a game of portfolio scale and density, so the current trend of consolidation observed in 2013 and 2014 is expected to continue and accelerate, particularly in highly fragmented markets like Germany and Italy,” said report author Cedric Brehaut.

As covered by PV Tech, acquisitions of O&M firms and portfolios have been one of the developing trends in the downstream PV market in 2014. First Solar acquired skytron energy in June this year. A subsidiary of AEG Power Solutions, skytron had more than 600 power plants under managemnt, totalling around 5GW, mainly across Europe. The acquisition was said to have more than doubled First Solar’s global monitored O&M portfolio.

Leading PV inverter supplier, SMA Solar Technology also acquired Phoenix Solar’s European O&M business in August, while O&M specialist Solarrus Corporation acquired MaxGen Energy Services to expand its portfolio.

GTM Research and SoliChamba Consulting said they expected an increased number of acquisitions in the O&M space over the next few years.

Companies across the PV value chain have seen the opportunity to provide O&M services due to reliable long-term revenue streams and opportunities to integrate technologies and best practices to optimise PV power plant yields.

20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 
1 December 2021
Understand fully the technical and logistical supply chains that determine the production and performance of solar modules, including all related factors impacting quality, reliability & bankability. This event will be run online with streamed content, access to session recordings and chat/messaging tools for delegates to connect.

Read Next

October 19, 2021
Funds managed by private equity firm Antin Infrastructure Partners have secured a deal to acquire a majority stake in US solar and storage developer Origis Energy.
October 19, 2021
Lightsource bp has announced its entry into Poland’s solar market through a co-development deal which will see the developer proceed with a 757MWp pipeline in the country.
October 19, 2021
Shortlisted bids in Saudi Arabia’s latest solar tender have jumped significantly on the lowest price recorded in the country’s previous renewables programme, reflecting the hikes in PV equipment costs in recent months.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.
October 19, 2021
Solar tracker manufacturer Soltec has signed a framework agreement with renewables developer Acciona Energia to supply trackers over a three-year period.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021