L R AS Published on Tuesday 7 June 2022 - n° 407 - Categories:European countries

What is missing to boost the PV production sector in Europe!

Europe desperately needs to increase its production capacity at all stages of the supply chain to meet the targets set by REPowerEU, said WoodMac

The European Commission (EC) has described solar PV as the "linchpin of this effort", but WoodMac has warned that the technology's contribution is threatened by high raw material costs, logistical challenges and rising panel prices.The European Commission (EC) has described solar PV as the "linchpin of this effort", but WoodMac has warned that the technology's contribution is threatened by high raw material costs, logistical challenges and rising panel prices.

In 2021, the rapid recovery in demand for solar installations has been accompanied by rapidly increasing freight rates and high solar raw material prices, which have driven up the cost of panels by more than 20%. In addition, the prices of key solar raw materials, such as silicon, silver, aluminium, copper and steel, have all reached record levels. Yet panel prices continue to rise due to the high cost of silicon and wafers. Silicon prices have tripled in the last 18 months due to COVID-19 restrictions and the energy shortage in China which is delaying the addition of new capacity.

One of the main ways to achieve the targets set under REPowerEU is to develop European manufacturing and establish a supply chain on the continent.

Europe's main silicon producer, Wacker Chemie, which produces around 60,000 tonnes per year, exports most of its output to China due to the lack of downstream capacity in Europe to process it into wafers, cells and panels.

For Europe to consume its current silicon production, it would need to increase ingot and wafer production tenfold, cell production by 21 times and panel production by 3 times.

"To meet REPowerEU's goals and create a local solar supply chain, current capacity needs to expand even more aggressively to three times more silicon, 20 times more wafers, 42 times more cells and six times more panels," said WoodMac.

Some factors cannot be resolved in the short term. The price of ultra-clear anti-reflective glass - the main material used for the front cover of solar panels - is under pressure due to rising natural gas and tin costs, while materials such as aluminium, galvanised steel and copper have all seen price increases of more than 30% since last year.

"There is little that can be done to reduce intensity of use in the short term."

https://www.pv-tech.org/repowereu-could-be-thwarted-by-high-material-costs-inadequate-european-solar-manufacturing/

PV Tech of 30 May 2022

Editor's note: Finally, a relevant analysis of the situation of the European industry! The task seems immense because all photovoltaic production has almost disappeared from the Old Continent, and the know-how has been lost. This explains the procrastination and hesitation to embark on a revival of the industry. At the same time, Europe will not be able to avoid an industrial resurgence which will quickly become necessary, either as a result of a rise in the price of panels which will continue, or during an embargo on panel deliveries which seems impossible at the moment but the Ukrainian example indicates that it is still possible.

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