Arguments that photovoltaic products "Made in Europe" do not pay off economically are no facts set in stone. On the contrary: a joint study by VDMA Photovoltaic Equipment (Germany) and Fraunhofer ISE shows that the production of photovoltaic in Europe is ecologically and above all economically feasible without subsidies. The study focused on the case of a fully integrated PV production in Europe.
Attractive market volume in Europe
Photovoltaics can benefit from the drastically increasing demand for energy from renewable sources, whether for electricity, transport, or heat, as well as the storage facilities required for this, such as hydrogen. In Europe alone, this requires an annual installation of photovoltaic capacity of around 100 GW. The market volume for the modules required for this, which cost between 0.20€ and 0.24€ per watt of module output for large-scale applications, is in the quarter billion-euro range, which is currently served almost exclusively by Asia. This market size, the still available know-how in Europe in the field of research and mechanical engineering, and the dependency of the supply chain problems that have just become apparent in the current corona crisis, make Europe attractive as a production location.
Supporting the resettlement of PV production in Europe
With this background, numerous initiatives can currently be observed in Europe. The activities are aimed at resettlement of PV production in Europe and its further development. Among others, the "Solar act now" campaign from the IPVF Institute in France and the "Solar Manufacturing Accelerator" initiative are
worth mentioning. An initiative that emerged from the VDMA study and describes a "5GW+ Green Fab" is also participating in this “Solar Manufacturing Accelerator” Initiative. The VDMA and its members support the resettlement of photovoltaic production if it is competitive without subsidies.
Necessary strategic axes
From the VDMA's point of view, three strategic axes are necessary to achieve this goal:
- the success of an ambitious European R&D program that focuses on the markets
- the development of collaborative technology platforms and
- the development of framework conditions that ensure fair competition, financial stability, and sustainability of the emerging ecosystem, integrated into the European circular economy.
PV cheapest electricity source worldwide
The costs per kWh of electricity generated with photovoltaics are already well below 4 € cent/kWh in tenders in Germany, and in sunny countries even in the1.5 $ cent/kWh range. This makes photovoltaics the cheapest way of generating electricity worldwide. (hcn)
