Opportunities for New Entrants in Wind and Solar Power Markets Stimulated by Projected Growth, Says Frost & Sullivan

LONDON, August 23, 2010 - As the burgeoning wind and solar power markets continue to expand,
industry value chains are looking to adopt measures to sustain anticipated
growth. For many component producers, the market growth rate will translate
into a need to increase existing capacities, build new plants and spread out
to new geographies.

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According to a recent study performed by Frost & Sullivan,
(www.power.frost.com), titled Overview of the Investment
Attractiveness of Selected Parts of the Value Chain: Wind and Solar Power,
markets for certain components of the wind and solar industry will present
budding opportunities for new entrants, as growth rates are expected to
exceed present manufacturing capacity.

"The rapid expansion of wind and solar power installed capacity led to
supply chain constraints when critical components became scarce. Fuelled by
generous government support, component manufacturers were not able to keep up
with market expansion rates," says Frost & Sullivan Research Manager in
Renewable Energy, Alina Bakhareva. "The crisis alleviated the strain to some
extent, as some projects were delayed or put off, curbing demand. However,
post-recessionary growth rates could make supply shortages reappear, thus
component manufacturers have to expand their existing production capacities
to reach new markets."

Many European and US-based manufacturers are setting up shop in Asia, in
order to take advantage of cheaper labour and component prices. Also, with
the number of consumers increasing in this region of the world, manufacturers
recognise the advantages of placing production locations closer to areas of
high demand. Both wind turbine and solar module manufacturing facilities have
started appearing in low cost countries such as China, Malaysia, Taiwan and
the Philippines.

Some components and raw materials require deep technological expertise
and extensive production experience in order to produce a competitive
product, creating high barriers for new entrants. At the same time, there are
other markets in which both experience and expertise can be rapidly gained,
thus it is potentially easier for new manufacturers to enter or expand into
these parts of value chain.

"The interest towards renewable energy industry has been mounting and
while early pioneers have been able to take advantage of the high growth
rates already, there are other manufacturers that are evaluating the sectors
and pondering on entry strategies and product strategies that will allow them
to start catering to this burgeoning market. "

However, a key restraint that may hinder these progressive attempts is
the lack of assurance of government financial support. With national budgets
overstretched and an increasingly high level of budget deficit in some
countries, funding expended to renewable energy markets in Europe and across
the globe may not be reliable. Component manufacturers must consider
expansions carefully if the government support is reduced dramatically, to
avoid being faced with overcapacities.

"While more mature markets, especially in Europe, are starting to
reconsider the amount of support they can afford to channel into renewable
energy markets, other countries are setting ambitious goals and putting a lot
of effort into renewable energy market expansion. This re-balancing of the
global renewable energy landscape and hot spots creates a need to diversify
into new markets."

If you are interested in more information on this study, please send an
e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

This Frost & Sullivan research service entitled Overview of the
Investment Attractiveness of Selected Parts of the Value Chain: Wind and
Solar Power provides detailed analysis on investment attractiveness of the
wind and solar value chains. Selected component's markets are assessed based
on a two-step methodology. Step 1 includes analysis of level of competition,
investment required, technological complexity, importance of being close to
demand, threat of new entrants and supply/demand gap. Step 2 includes a
number of factors that are important when making a decision about
expanding/building a new production plant, these factors include: proximity
to existing facilities, being close to demand, favorable investment policies,
assess to cheap labor, access to cheap manufacturing locations.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
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please visit www.frost.com.

       Overview of the Investment Attractiveness of Selected Parts of the
                       Value Chain: Wind and Solar Power
                                  M5BE - 14

    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44-(0)-20-7343-8314
    M: +44-(0)-753-3017689
    E: chiara.carella@frost.com

www.frost.com

Chiara Carella, Corporate Communications - Europe, Frost & Sullivan, +44-(0)-20-7343-8314, Mobile, +44-(0)-753-3017689, chiara.carella at frost.com