L R AS Published on Tuesday 5 October 2021 - n° 376 - Categories:Thread of the Week
Le Fil de la Semaine n°376 of 5 October 2021
THIS WEEK'S NEWS HIGHLIGHTS.
The texts to read this week:
FRANCE :
New standards apply to photovoltaics
Three texts specify:
- An order of 10 September 2021 (JO 22 Sept. 2021, text n° 7) subjects foreign investments in France in technologies involved in the production of renewable energy to prior authorisation by the minister in charge of the economy.
- The call for projects procedure for electricity or biogas production facilities using renewable energy or innovative technologies.
- A new decree in the Official Journal specifies the procedure for future calls for projects dedicated to "innovative renewable energy".
Publications in the Official Journal
* *
The TotalEnergies group has presented its product strategy for the coming years
The oil group does not intend to appear to be the bad pupil at the next COP 26. It has to show that the group has taken an unquestionable turn towards renewable energies and that it intends to play a major role. Hence its reaffirmation of its renewable energy target of 35 GW by 2025 (compared with 10 GW by the end of 2021). However, despite the amount of investment that will be made, the group expects that electricity will only represent 15% of its turnover in 2030. Gas and oil will account for 80% of its sales. The management of TotalEnergies believes in the future of hydrocarbons!
TotalEnergies' strategy and outlook
* *
THE TREND :
Electricity shortages upstream of the industry are disrupting the entire production chain. We no longer know what the price and quantities will be within a week!
The price of silicon metal (the material from which solar grade silicon is produced) has doubled in the last week due to power shortages and the retention of sellers. Of course, solar grade silicon is suffering from this increase, which is having an impact downstream. The entire industry no longer knows what the price will be the following week, and no longer knows what quantities will be available. There is general uncertainty about the future. Hence the call by the five largest panel manufacturers to stop ordering panels.
The photovoltaic industry at the production of September 29
* *
When manufacturers ask their customers not to buy or to postpone their purchases, it is because the situation is deteriorating or becoming serious. However, this is what the world's five largest panel producers have just asked their customers in an open letter. This means that they are expecting the worst in the next few weeks as buyers still believe they can place orders; that they are planning to source panels to complete their installations before the end of the year; or that they have not yet realised that even with higher prices they will not be able to get the panels they want. Is it only because of the much higher prices that these five manufacturers are reacting? Do they foresee a production shortfall due to the energy shortage? They do not indicate the underlying reasons for their message, but already the Norwegian Scatec has announced that it will have to suspend two contracts because profitability is being affected by the higher prices!
The French view of energy is not the world's: by 2020, there will not have been a single new nuclear gigawatt installed. This compares with 256 GW of new renewable energy. There is a good reason for this: the price of the nuclear kilowatt hour has risen by 33% in recent years.
The nuclear-renewable energy match in 2020
* *
THE WORLD :
China is facing a severe energy shortage, and this before the annual peak consumption period!
The press is reporting factory closures, power cuts, and night shifts to spread out energy consumption. The electricity shortage seems severe and does not only affect silicon production. No one is talking about the extent of the shortage, or its impact on panel production. What is known is that the price of silicon has risen by 9% in the last week, and that its scarcity will push prices to a stratospheric level
China's electricity rationing spreads
The causes of the shortage of silicon and therefore panels
* *
Providing aid or subsidy to recreate an industry always gets good results
How to revive the US PV industry? There is the solution of waiting for companies to fill in the gaps and gradually build up a complete industrial fabric. This can take many, many years and success is not guaranteed. The other solution, which works more quickly and provides an almost immediate result, is to grant a bonus or tax advantage for any production created on American soil (in this case, in the photovoltaic field in the broad sense). If, in addition, there is customs protection against unregulated or dumped imports, the conditions are ripe for the resurgence of the industry. resurgence of the industry. Even Meyer Burger, who has just moved to Germany, finds the US policy attractive and the tax benefits worth taking.to take. He announced that he was moving across the Atlantic!
SEMA bill likely to be passed soon
* *
Here too, the Indian government's aid and subsidies are ensuring vocations!
The Indian government's subsidies for installing photovoltaic production units are attracting vocations! Half of the companies that have applied have never worked in photovoltaics! It is not only the assembly of panels that is in demand, but also the production of silicon, wafers, etc. Companies have five years of aid to launch and make their production units profitable
Enthusiastic reception for the installation of photovoltaic plants in India
* *
MANUFACTURERS :
Apart from ministerial speeches and verbal encouragement, Meyer Burger is struggling with supply difficulties. He wants to leave!
Meyer Burger is facing a shortage of components in its panel production in Germany. Only a few months into its operations, the management realised that it needed to find customs protection in the US and possibly subsidies to expand its business. Note that the company has not yet announced that it is withdrawing from Europe. Is this just a delayed announcement?
Meyer Burger understands that it has to go to the US
* *
