Europe seeks more independence from China in solar power production

In an effort to reduce its dependence on China for solar power, Europe is shifting its focus to fortifying its own capabilities.

This intent was underscored at the Intersolar Europe 2023 trade event in Munich, Germany, where the emphasis was on Europe reclaiming photovoltaics (PV) production to achieve energy autonomy and establish a durable, resilient energy system.

The European Commission has endorsed this approach through the creation of the Solar Photovoltaic Industry Alliance.

This alliance aims to reach an annual solar energy manufacturing capacity of 30 Gigawatt by 2025 across the entire PV value chain, as per the European Union Commissioner for Internal Market, Thierry Breton.

This strategy aims to prevent replacing existing fossil fuel dependencies with new ones.

However, Europe’s PV module production significantly lags behind the projected installation demand.

To tackle this issue, the EU is targeting a self-sufficiency level in PV module production of 40% by 2030.

This goal will necessitate considerable private financing, bolstered by EU policy funds.

Despite having a well-established solar power supply chain, Europe lags in terms of economies of scale.

McKinsey & Company reports that European companies only hold a small share of the global market for solar polysilicon, ingots and wafers, solar cells, and PV modules.

Nonetheless, recent efforts from companies like SMA Solar Technology, Fronius, Belinus, FuturaSun, Enel, and Solitek, investing in capacity expansion and building new factories, demonstrate Europe’s commitment to addressing this demand.

Despite these efforts, China’s position as the world’s leading producer and user of solar power is undeniable.

Consequently, Europe’s reliance on China for solar power capacity is likely to persist due to China’s superior production capacity and cost advantage.

Even so, rejuvenating Europe’s solar power manufacturing industry is seen as a key step towards transitioning from fossil fuels and developing new clean technologies.

The EU’s Solar Energy Strategy showcases this commitment, which places EIT InnoEnergy at the helm of its Solar Photovoltaic Industry Alliance.