The biggest driver of the shortage and surge of silicon material this year is the surge in installed capacity of solar power generation. China, the United States, Europe, India, and Brazil have all announced their expected new installed capacity this year.
To make matters worse, on July 26, the European Commission's special energy committee meeting approved a new regulation proposed by the European Commission a week ago, which will increase the EU's new installation target for this year from 29.9GW to 39GW, an increase of 1/3, 2022. A total of 13GW is added annually, doubling from 2020 and 50% from 2021!
1. The pressure of gas shortage, take the initiative to reduce gas
As the Russian-Ukrainian conflict continues, the energy crisis encountered by the EU is no longer a rhetoric. Previously, in order to ensure the supply of Russian natural gas, the EU strongly pressured Canada to release the gas turbines that Russia sent to Canada for maintenance, first to Germany and then back to Russia from Germany.
But even so, Gazprom announced an "emergency", saying that another Siemens gas turbine at the Portovaya compressor station was about to stop running, so it decided to reduce the total amount of natural gas transported by the "North Stream 1" pipeline by half. This also means that the amount of luck of "Beixi No. 1" will only be about 20% of the original.
From the outbreak of the Russian-Ukrainian conflict to the present, the European Union has repeatedly faced the increasing gas supply crisis. Faced with increasingly serious energy shortages, the European Commission decided last week to start reducing natural gas consumption this winter. Action in solidarity to reduce gas demand by 15% between August 1, 2022 and March 31, 2023.
2. Photovoltaic emergency, 10GW increase
In order to make up for the shortage of natural gas, the EU must increase the supply of other energy sources. The EU has pointed out fuel conversion measures to save natural gas in advance, including switching to renewable energy and solar energy. Renewable energy will again face growing demand. The vice-president of the European Commission said: "Every megawatt of energy generated by solar and renewables is less than what we need from fossil fuels in Russia. European solar is being rolled out as quickly as possible in preparation for a difficult winter."
The analysis of SolarPower Europe revealed that the EU's new plan will break the previous highest forecast of 29.9GW of new photovoltaic installations in 2022. The EU will target to add about 39GW of photovoltaics by the end of the year, which is equivalent to 4.6 BCM of natural gas. In 2021, the EU will add 26GW of photovoltaic power generation, an increase of 25% over the new increase in 2020; in 2022, it will add 13GW, an increase of 50% over 2021!
Walburga Hemetsberger, CEO of SolarPower Europe, said: “Each megawatt of energy generated by solar and renewables is less than what we need from fossil fuels in Russia. Solar in Europe is rolling out as quickly as possible in preparation for a difficult winter.”
EU energy ministers voted to approve the proposal at a special energy committee meeting on July 26.