L R AS Published on Monday 12 September 2022 - n° 415 - Categories:European countries

Sunny summer boosts solar's share of Europe's energy mix

The energy crisis in Europe seems less severe after such a sunny summer: between May and August, the EU produced 99 TWh of solar power (+28% on 2021),

according to Ember, i.e. 12.2% of its electricity, whereas the sun only produced 9% (78 TWh) during the summer of 2021. This has enabled solar power to overtake wind power (11.7%) and hydroelectricity (11%), but its contribution is still less than coal's 16%. Solar energy has saved €29 billion worth of fossil gas, or 20 billionm3 of fossil fuel.

Solar production records have been broken in 18 of the 27 EU countries (2/3 of the countries). Poland increased its solar output by a factor of 26, followed by Finland and Hungary, which increased their solar output by a factor of 5. Ten Member States produced more than 10% of their consumption during the summer.

This is prompting commentators to advocate the continuation of solar production installations, but Ember points out that projections for the coming years are less than half of what would be needed to continue on the trajectory recommended to reach the 1.5°C target.

Record solar production in all European countries

Eighteen EU countries set a new record share of solar power during this year's summer peak: Austria (2.4%), Belgium (12.8%), Cyprus (13.3%), Czech Republic (5.1%), Denmark (12.9%), Estonia (13.9%), France (7.7%), Germany (19.3%), Greecece (15.3%), Hungary (14.7%), Italy (15.0%), Netherlands (22.7%), Poland (8.1%), Portugal (9.3%), Romania (3.8%), Slovakia (3.4%), Slovenia (3.1%), Spain (16.7%).

Fossil gas prices continued to break records over the summer. On 29 August, the European "TTF day ahead" reference price reached a record level of €313/MWh, compared with an average of €148/MWh from May to August. This is four times more (+ €110/MWh) than during the same period in 2021, when the price was €38/MWh.

The gas price for the next winter contract (2022/2023) is currently nine times higher than at the same time last year, at €242/MWh compared with €28/MWh.

All in all, Ember is encouraging further solar power generation installations.

https://ember-climate.org/insights/research/record-solar-summer-in-europe-saves-billions-in-gas-imports/

Ember of 8 September 2022

Editor's note Of course, we should be delighted that solar energy has contributed 12% of European consumption. That's all well and good. Realism dictates that we should be much more measured and even reticent.

Ember regrets that there are so many obstacles in the way of administrative procedures authorising construction, which causes delays. That's true.

Ember would be well advised to note that these are not the only obstacles to installations: the first is the general observation that it is difficult to find land to install power plants. This is not an administrative measure against the installation of solar power plants. The second is that the Chinese have realised that there is very strong demand for panels. They are taking advantage of this to raise their prices. Added to this are the shipping costs, which are much higher than they were before covid.

Finallythe biggest threat to future installations comes from rising interest rates. The ECB has just raised them by 0.75%, and there's more to come, because an ECB rate of 1% to 2% at a time when inflation is at 7% in France and 10% in many European countries means that rates will have to rise to this high level. If they have to lend at 2% and receive repayments with a depreciated value of 7% to 10% a year, the banks won't lend. How will developers be able to install power plants with such a cost premium?

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