Is Europe ready to supply itself with photovoltaic components?

The news that we have received in recent months from China may be worrying for the renewable energy sector and especially for photovoltaics in Europe. In the last decade, we have become a continent highly dependent on supplies from the eastern country. That is why we wonder if the European photovoltaic manufacturers They are prepared to cover the supply to all the demand that is being generated.

Reasons for concern about photovoltaic supply

The reasons why there may be some concern in Europe regarding the supply of the different photovoltaic components There are several. On the one hand, we have the great push that China is giving to photovoltaics, among other renewable energies. We constantly hear news of the large solar farms that are being installed there, constantly achieving new records in capacity or number of panels.

This is due to the intention of the eastern country to prioritize supply to internal clients, which in many projects are photovoltaic companies state-owned, rather than exporting all types of photovoltaic components abroad.

There has also been news that China is halting supplies of solar panels due to patent infringements. The Chinese government has embarked on a crusade to ensure an image of quality and high technology for the products it exports. It is therefore imposing rigorous controls and is planning significant penalties for exporters. photovoltaic manufacturers who want to launch products that do not meet the appropriate quality standards or respect the patents of other companies.

And finally, there are the trade tensions that are emerging due to the tariffs that Europe wants to impose on the import of electric vehicles manufactured in China. This decision may have a counterpart from the eastern government and impose counter-tariffs or export restrictions on photovoltaic products.

These factors, and some others, could mean a hard blow to the development of self-consumption and photovoltaics in general in the old continent, due to the shortage of photovoltaic modules and inverters, mainly. As a consequence, large projects could be paralyzed, as well as a rise in the prices of these products, due to the shortage.

Is the European Union prepared to fill this gap?

We are already clear that dependence on third countries is not good, unless continuous supply is guaranteed at reasonable or pre-agreed prices. That is why we should not rely on American suppliers either, due to the constant trade wars and tariffs that the US and Canada tend to apply.

All this leads us to look inside the borders of the European Union and check the capacity of European photovoltaic manufacturersHowever, it seems that our own companies do not see their own market as a priority. This is confirmed by news of factory closures or production reductions caused by the constant price cuts by Chinese manufacturers.

To this we have to add the constants Investments by European photovoltaic manufacturers in countries on other continents. As an example, European solar panel manufacturers Meyer Burger and Enel announced their expansion of production activities in the USA. Enel announced the construction of a production capacity of 3-6 GW and Meyer Burger intends to establish 2 GW of cell/module production in the USA.

However, thanks to the European Commission’s push to recover the production of electrical and electronic technology that in recent decades had been transferred to China, European manufacturers are being supported to increase production on the old continent. Enel was the first to do so. win a grant for a solar manufacturing plant in the first round of large-scale projects from the EU Innovation Fund in November 2021, which is being used to increase production to 400 MW in 2023 and 3 GW in 2024.

The largest solar cell manufacturer in the EU is Meyer Burger, which currently has 1.4 GW of cell and module production in Germany. The Swiss manufacturer more than tripled its existing capacity by 2023 and could increase production to 3.5 GW by 2025, depending on the policy framework and adequate financing.

Map of solar photovoltaic manufacturing in Europe

The map of the solar manufacturing outlook in the EU and Norway has been updated, based on industry developments taking place throughout 2023. The objective of this map is to illustrate current production capacities in key segments of the solar value chain within the EU-27 Member States, Norway and Switzerland.

Companies actively involved in silicon, ingot/wafer, cell, module, and inverter manufacturing, including both late-stage startups and those offering commercial products in 2023, are illustrated in the solar manufacturing map below.

Manufacturers of photovoltaic modules in the EU

The main components of a photovoltaic installation are the panels and the inverters, and they are also the ones that require the greatest investment in R&D&I, due to their greater technological base.

• European manufacturers of photovoltaic solar panels

In addition to the two photovoltaic cell/module manufacturers In the case of EU-based manufacturers producing PV cells for domestic consumption, a large number of EU module manufacturers have decided not to manufacture their cells, but to import them from Asia. Due to the relatively low investment cost associated with the solar module manufacturing pure compared to other stages of the solar module manufacturing chain, this segment has witnessed the highest level of activity.

However, this segment is mainly driven by numerous small and local companies, each operating with capacities in the sub-GW range. Thus, as of 2023, a minimum of 57 module manufacturers have established factories in the European Union. total module production capacity The current capacity is around 14.6 GW, up 59% from 9.1 GW in 2022. The largest PV panel manufacturer is RECOM Technology, which has expanded its production capacity to 3.2 GW.

Looking ahead, there are some notable announcements, included in the Decarbonisation Plan, that are planned to materialise by 2025. One of them is the construction of a 5 GW vertically integrated gigafactory in France for ingots, n-type wafers and TOPCon cells, and a 3.5 GW module assembly line. The company plans to employ more than 3,000 direct workers by 2027.

Meanwhile, in the Netherlands, MCPV is actively working to build a 3 GW heterojunction cell and module manufacturing plant by 2026, starting with a 300 MW line.

• European manufacturers of photovoltaic inverters

Inverter production remains by far the largest segment of the industry. European solar manufacturing. We currently have a production capacity of over 82 GW, approximately 14% more than in 2022, when the capacity was 72 GW.

Today, inverter manufacturers remain the backbone of solar employment in the EU. With at least 13 companies and organisations employing more than 70% of all manufacturing jobs, several of these European companies are also international leaders, such as SMA from Germany and Fronius from Austria.

Despite fierce global competition and high stock levels in Europe, The main European photovoltaic manufacturers investors remain firm. Most companies present in the sector have maintained their 2022 production levels or even increased their manufacturing scale.

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