Europe should construct out its personal large-scale, vertically built-in photo voltaic manufacturing base geared to supply the newest PV applied sciences as a method to make sure its transition and bolster its power independence, in keeping with clear power advisory agency Apricum.
It’s because the “present actuality of primarily sourcing PV modules from Asia poses dangers on the formidable PV progress plans for a inexperienced and energy-independent Europe,” says Florian Haacke, associate at Apricum’s Photo voltaic Supplies & Applied sciences division.
“Furthermore, there’s a sturdy rationale for localisation of European provides,” says Haacke, as he cites provide variety, geopolitical tensions, financial alternatives and R&D management as convergent components that imply the time is true for a buildout of Europe’s PV manufacturing base.
The agency had beforehand mentioned: “for a PV module producer to be economically viable within the longer run, 3-5GW annual capability seems important to permit for economies of scale”.
When requested by PV Tech Premium how such a determine was arrived at, Haacke mentioned “our expertise and monetary fashions on world scale PV module manufacturing present {that a} new module producer ought to boldly design future scale in direction of 3-5GW – except the corporate is positioned in a well-protected area of interest section, in fact.”
“Scale permits for buying energy and for overhead value dilution over numerous PV modules,” he continues. “Important company capabilities similar to R&D and advertising and marketing/gross sales might be sustained, that are important for financial viability.”
And this R&D level is essential given Europe’s relative infancy relating to photo voltaic manufacturing, says Apricum. “Since Europe may very well be referred to as a ‘late comer’ in scaled PV manufacturing, it seems advisable to pick high-efficiency PV cell and module applied sciences to start a viable PV enterprise,” explains Haacke.
Whereas Haacke mentioned “new PV applied sciences are primarily primarily based on new cell applied sciences built-in right into a well-designed module”, he additionally famous how “there’s some strong PV cell analysis in Europe” as he referenced the likes of Fraunhofer ISE and ISC Konstanz in Germany, INES in France, IMEC in Belgium and additional expertise hubs within the Netherlands, Switzerland, Spain and Italy.
To be aggressive in Europe, Apricum advises specializing in 4 key methods for PV entrants: purpose for giga-scale to make sure value competitiveness; goal vertical integration to cut back dependency on PV part imports; give attention to high-performance merchandise (N-type, HJT and HPBC) as these will allow concentrating on enticing ‘made-in EU’ premium markets; and performing a strong evaluation previous to investing.
Europe should not, nevertheless, neglect these upstream levels of the availability chain in favour of simpler, cheaper downstream sectors similar to cells and modules. Just like the US, Europe has been in a position to safe some cell, module and even polysilicon capability however key elements similar to ingots and wafers stay critically absent.
“The dearth of a totally developed PV worth chain creates a danger of fabric and part dependency,” says Haacke. “Any future provide instability – triggered by no matter geopolitical occasion – might result in interrupted PV manufacturing in Europe. That is very true for the very base of the PV worth chain: polysilicon, ingots and wafers.”
“For this reason we advocate that polysilicon, PV ingoting and wafering needs to be very excessive on the European precedence checklist. After which, there are different supplies which want shut consideration, similar to glass, PV movies, and framing/mounting,” provides Haacke.
And firms wouldn’t be working alone in constructing out these services. Europe has made clear its need to determine a home photo voltaic manufacturing hub and scale back its import reliance. However the continent’s REPowerEU technique may very well be thwarted by larger materials and module prices, making the presence of a robust regional manufacturing base much more essential.
“Europe already has mechanisms such because the IPCEIs (Necessary Initiatives for Frequent European Curiosity) and numerous funds (e.g. EU Innovation Fund) that proved to be efficient to assist comparable industries,” says Haacke. “The PV trade is engaged on the proposal of an IPCEI for PV manufacturing just like those initiated for hydrogen and battery storage worth chains.”
“A streamlined allowing course of for manufacturing services and website choice assist would additionally profit new and present PV gamers,” he notes.
