The chief executives of companies including First Solar, BayWa r.e. and Meyer Burger have written to the European Commission calling for urgent action to support the resurgence of PV manufacturing in Europe.
In a letter to European Commission President Ursula von der Leyen yesterday, the chief executives of 12 European and US companies said developing a strong European solar manufacturing value chain and reducing reliance on imports "would significantly strengthen" the EU Commission's Energy Security Goals.
They highlighted a recent report from the International Energy Agency. The report found that since 2011, China has invested ten times as much as Europe in new PV supply capacity, meaning that China has invested ten times more in all PV module manufacturing stages, including polysilicon, ingots, wafers, cells and modules. share of more than 80%.
In the letter, signed by the CEO of trade body SolarPower Europe, the signatories said there is an "urgent need for ambitious accelerated financial support for large-scale PV manufacturing projects in Europe, while providing competitive costs across the supply chain. Support measures, especially energy-intensive polysilicon, ingot and wafer production."
They point out that these measures highlight the need for Europe to take stronger action to accelerate its participation in global competition in the solar PV value chain.
The signatories noted that the U.S. Inflation Reduction Act is a testament to U.S. ambition to bring back the clean energy industry, adding that this legislation provides clear, tangible operating expense and capital expenditure benefits guaranteed for nearly a decade Predictable operational support. In 2030, 50GW of U.S. solar energy will be made locally!
The signatories also highlighted an innovative tender design in India that provides clear direction for the solar industry. India recently released guidelines for a second round of incentive schemes aimed at increasing PV module capacity by 65GW.
In order to ensure a strong European participation in the competition for a diversified global solar supply chain, the signatories have urged the European Commission to replicate the EU Chip Act for solar photovoltaic technology. The bill aims to boost Europe's share of global chip production capacity to 20% from about 10% currently.
The CEO also called for a boost in solar PV capacity in the National Resilience and Recovery Plan, part of NextGenerationEU, the EU's response to the challenges posed by COVID-19 to the European economy and the EU's commitment to green and digital transformation preparation.
The recommendations follow last week's warnings. Photovoltaic manufacturing projects across Europe are at risk of shutdowns due to soaring electricity prices, the warning said. The energy-intensive nature of the solar PV manufacturing process has led some operators to temporarily close or abandon production plants, according to consultancy Rystad Energy.
Maxeon Solar Technologies has since confirmed that it has closed a PV module manufacturing plant in France, citing a challenging price environment.