Credit rating agency Fitch said in a sector report that solar technologies are likely to suffer "harsh market conditions" over the next two to three years.
In the report, the agency believes that premium cuts to renewables in several countries will damage the sector, until co2-emitting technologies begin to suffer additional taxes for these emissions and, with it, make solar more competitive.
"Some countries could announce further premium cuts at a time when the sovereign debt crisis puts pressure on public finances and electricity prices have become a key aspect of policy," Fitch says.
The cuts may be greater in photovoltaic technology, at a time when countries are moving towards more productive renewables, such as offshore wind, and governments, such as the Italian, are beginning to apply limitations to the installation of power.
Other aspects that will characterize this activity will be a saturation of the market caused by the massive arrival of Chinese panels and the weakness of demand caused by the fall in premiums.
If anything, Fitch forecasts that the third phase of Europe's emissions trading program, which begins in 2013, will help develop solar technologies by making them more competitive. (EUROPA PRESS)
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