Industry Intelligence #4 Decoding the EU solar panel manufacturing
Rayane Echikr
CI Analyst @EIT Manufacturing | Competitive Intelligence, Green Manufacturing, Industry 4.0, Technology Watch
Greetings everyone,
Welcome to the fourth edition of Industry Intelligence, your go-to newsletter for staying up-to-date with the latest trends in energy and technology. The main goal is to shed light on ways to achieve industrial sustainability and decarbonisation within European #Manufacturing.
In this edition, we'll be diving into the fascinating realm of solar panels and their potential sustainability. By exploring miscellaneous use cases, projects, and policies at a European level, I aim to provide valuable insights and actionable knowledge.
If this topic resonates with you, I invite you to join me in exploring the depths of this subject together! Let's embark on this journey towards a greener and more sustainable future.
Technology use-cases:
Unlocking Insights: Wacker′s New Plant & Polysilicon Market Dynamics ????
?? Wacker Chemie AG, the largest EU silicone manufacturer, is set to establish a new production facility for silicones in Karlovy Vary, Czech Republic, in response to megatrends like electromobility and #solar panels that demand WACKER's silicone solutions. Production is anticipated to commence by the end of 2025, accompanied by the creation of up to 200 jobs in the initial phase of the project, with a low triple-digit million-euro investment. https://shorturl.at/rvNQZ
Dracula Technologies Establishes an Organic PV Module Production Facility in France ??
?? Dracula Technologies, a French PV #manufacturer, is constructing the largest organic photovoltaic (OPV) device factory in Europe, set to revolutionise the sustainable energy landscape. With a sprawling 2500 m2 facility, Dracula's factory will annually produce up to 150 million cm2 of OPV cells. This production method employs inkjet printing, delivering both cost-efficiency and unprecedented customisation capabilities. https://shorturl.at/swADN
Policy
Record-breaking Dive in Solar Cell Prices ?
?? In a groundbreaking development, #solar cell prices have reached an unprecedented low this week, as reported by OPIS data, a Dow Jones company. The cost of Mono Perc M10 and G12 cells has been evaluated at $0.0603 per watt and $0.0645 per watt FOB China, respectively. https://shorturl.at/abK59
?? Urgent Call to Action: Save the European Solar PV Manufacturing Industry ??
The European Solar Manufacturing Coalition (ESMC) sounds the alarm on the #crisis gripping the European solar PV manufacturing sector. Key players, including Meyer Burger, Norsun, REC Solar Norway, and Norwegian Crystals, report unsustainable market conditions, setting the stage for a potential industry-wide shutdown.
Immediate Actions:
Renewable Energy Jobs Nearly Double in the Past Decade ??
?? In 2022, global employment within the #renewable energy sector reached a remarkable 13.7 million, marking a substantial increase of one million jobs compared to 2021 and a significant jump from the 7.3 million recorded in 2012. These findings emerge from a collaborative report by the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO).
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?? Nevertheless, much like in previous years, most of these employment opportunities are concentrated in a handful of nations. Notably, China takes the lead, accounting for 41 % of the total global workforce in this sector. Other major contributors include Brazil, European Union (EU) member countries, India, and the United States of America (USA), together constituting the principal driving forces behind global capacity installations and contributing significantly to equipment manufacturing, engineering, and related services.
?? The report's Annual Review identifies solar photovoltaics (PV) as the predominant employment generator in 2022, with a staggering 4.9 million jobs, representing over a third of the renewable energy sector's entire workforce.
Solar capacity in the world and the EU
Solar capacity worldwide ??
A short introduction to the EU solar panel landscape, a view versus the rest of the world
From 2010 to 2021, the People's Republic of China, often referred to as "China," solidified its dominant role as a producer of wafers, cells, and modules. During this period, its share of global polysilicon production capacity nearly tripled. Presently, China's contribution to every stage of manufacturing surpasses 80%, a substantial increase from its 36% share in global photovoltaic (PV) deployment.
Notably, China stands out as the most cost-competitive hub for manufacturing all components of the solar PV supply chain. Costs in China are 10% lower than those in India, 20% lower than in the United States, and 35% lower than in Europe.
Breaking news: SP New Energy Breaks Ground on 3.5 GW Solar Project in the Philippines ??"
?? SP New Energy Corp.a subsidiary of Solar Philippines, the largest solar energy provider in the Philippines, is making waves in the renewable energy landscape with its groundbreaking 3.5-gigawatt solar project on Luzon, the Philippines' largest island. Valued at 200 billion pesos ($3 billion), this initiative, started this month, aligns with SPNEC's vision to achieve 8 GW in commercial operations by 2026, potentially constituting 2/3 of the Philippines' renewable energy capacity.
Employment in the PV manufacturing landscape
A significant growth in the global workforce has been observed in the manufacturing of polysilicon, wafers/ingots, cells, and modules over the past decade, with the total number of jobs nearly doubling to reach approximately 600,000 in 2021. Additionally, the production of other equipment associated with solar PV systems, such as inverters, racking, and mounting, has also contributed to employment opportunities. Notably, in Europe, inverter production constitutes almost 50% of PV manufacturing jobs, as per Solar Power Europe in 2021. Similarly, in the United States, racking and mounting activities account for nearly 20% of PV manufacturing jobs.
The aftermath of the Covid-19 outbreak had a notable impact on shipping times from China to both U.S. and European ports. These shipping times increased significantly, stretching from approximately 40 days to over 100 days. Importantly, shipping delays persist in deliveries to Japan and Korea, potentially causing delays in the deployment of solar technology in 2022. As a result, there is a growing trend of concentration in polysilicon, wafer, cell, and module production capacities, which renders the solar supply chain more susceptible to various risks and disruptions.
Furthermore, the European Union faces challenges in terms of specialization within the solar industry across the entire supply chain, as reported by SolarPower Europe in 2020.
? The situation in Europe:
?? The businesses operating within the European Economic Area (EEA) have a combined production capacity of 9.4 gigawatts (GW) for solar modules, 1.4 GW for solar cells, 69.9 GW for inverters, 1.7 GW for ingots and wafers, and 23.2 GW for polysilicon.
?? European solar startups have experienced a phenomenal 398% increase in total investment, securing a staggering $6 billion in funding by May 2023, according to research conducted by Avnet Abacus. By the end of 2022, European solar startups had already attracted an impressive $7.2 B in funding, nearly quadrupling the previous year's record of $1.9 B.
?? High industrial?#electricity?prices pose a significant challenge in many European countries, resulting in locally manufactured products being more expensive than those produced elsewhere. This issue is particularly relevant to the production of solar modules, polysilicon, ingots, and wafers, which are highly energy-intensive processes. Here is the PV Production in Europe:?https://shorturl.at/eqNVW