The large earthquake and consequent tsunami breaking out in northeastern Japan have destroyed roof- and ground-mounted PV (photovoltaic) systems with total installation capacity of about 300MWp, according to the Industrial Economics and Knowledge Center (IEK) under Taiwan government-sponsored Industrial Technology Research Institute. Large Japan-based PV makers have planned donation of PV systems for the earthquake-hit region, according to industry sources in Taiwan.

The system donation is expected to create new business opportunities for the PV industry, the sources said, adding that a lot still depends on how the Japanese government plan to reimburse system operators for the damages and rebuild the solar systems.

Taiwan-based solar wafer maker Sino-American Silicon Products (SAS) indicated that the nuclear power plant accidents will be positive for the long-term development of solar energy. Compared with the semiconductor sector, the earthquake has relatively little impact on Japan's solar industry, the company said.

China-based LDK Solar also agreed that the risk of nuclear plants will once again move to the industry forefront, especially in Germany. European countries are smaller in land size, any nuclear incidents could immediately affect the entire nation and neighboring countries , the company noted.

Japan's Chiba prefecture, which is an important region for the chemical engineering industry, was hit hard by the earthquake, raising concerns for material supply of the solar industry, the sources said.

EVA, which is used in solar modules, is one of the main products manufactured in the region. Japan's two largest EVA makers - Mitsui Chemicals and Sumitomo Chemical - have both shut down production. EVA pricing could rise, and chemical engineering companies in Taiwan and Japan's Bridgestone will likely benefit from order transfers.