Survival of the fittest… this seems to be the situation among solar power project builders in the Australian renewable market. The renewable market players are caught between the sharp rebound in solar panel costs and the ongoing downward pressure on electricity contract prices as reported by the Australian Financial Review.
Consultancy Sustainable Energy Research Analytics has warned that the intensifying competition between construction contractors and the squeezed margins is likely to make some firms go out of the market.
The competition is:
- Between local firms with experience in Australian energy and mining
- Overseas players that have a solid track record in delivering renewables infrastructure
- Smaller players are also eyeing for construction contracts in the next 6 months.