The new alliance will promote investments in large-scale factories, aiming for an annual output of 30 gigawatts (GW) for each key solar component by 2025 \u2013 more than six times the current capacity of around 4.5 GW per year.<\/p>\n\n\n\n
\u201cWith this alliance, we want to create full solar PV value chains\u201d in Europe in order to \u201creduce our dependencies\u201d and create value in the European Union, said Thierry Breton, the EU\u2019s internal market commissioner who spoke at the official launch of the alliance.<\/p>\n\n\n\n
Europe has a lot of catching up to do. Of the 450 GW of PV modules that were produced worldwide in 2021, less than 9 GW were manufactured in the EU.<\/p>\n\n\n\n
This year, almost 40 GW of solar PV is expected to be installed across the 27-nation bloc \u2013 a new record. But this will be achieved thanks to a doubling of solar PV exports from China, Breton pointed out.<\/p>\n\n\n\n
\u201cWe lost our market shares and we are struggling to tap into the jobs potential in this sector,\u201d he warned.<\/p>\n\n\n\n
For Breton, this is the \u201cgreen paradox\u201d: although solar energy is \u201cabsolutely essential\u201d for Europe\u2019s decarbonisation and energy independence, the bloc is almost entirely dependent on China regarding manufacturing.<\/p>\n\n\n\n
Beijing currently controls 80% of global solar PV manufacturing capacity. And for global polysilicon and ingots, the share will soon reach almost 95%, Breton remarked.<\/p>\n\n\n\n
\u201cPut differently, one in seven panels produced worldwide is manufactured by a single facility\u201d in China \u2013 often not sustainably, the French EU commissioner said.<\/p>\n\n\n\n
\u201cThis is the gap and the opportunity,\u201d he added, saying this is where the new solar industry alliance will help.<\/p>\n\n\n\n
The industry alliance is part of an\u00a0EU solar energy strategy<\/a>, published in May, which was published alongside broader EU plans to end Europe\u2019s reliance on Russian fossil fuels following the invasion of Ukraine.<\/p>\n\n\n\n The objective is to deploy almost 600 gigawatts (GW) of solar PV capacity by 2030, with an interim target of 320 GW by 20203 \u2013 more than double the bloc\u2019s current output.<\/p>\n\n\n\n More recently, the Commission\u00a0tabled a proposal<\/a>\u00a0to\u00a0speed up permitting for renewables<\/a> that\u00a0are expected to accelerate solar energy deployment in the EU. Solar rooftop projects, for instance, and small solar installations below 50 kW of capacity will be exempt from a dedicated environmental impact assessment.<\/p>\n\n\n\n According to Breton, Europe needs to accelerate on permitting and finance.<\/p>\n\n\n\n \u201cWe cannot afford to wait two years for financing some projects,\u201d he said, adding he expected more engagement from the European Investment Bank (EIB) in this respect.<\/p>\n\n\n\n Developments are also expected on the regulatory side, with Breton announcing new environmental and social \u201ccriteria\u201d for solar panel manufacturing in mid-2023, Breton said. \u201cThis is going to help with the sustainable level playing field, including by looking at carbon footprint requirements\u201d for solar PV panels, he said.<\/p>\n\n\n\n The Frenchman insisted that Europe needed to move fast, saying 100,000 jobs in the industry were at stake.<\/p>\n\n\n\n \u201cThere is not one second to lose\u201d.<\/p>\n\n\n\n The European solar industry applauded the initiative but also expressed concerns about lack of funding and rising manufacturing costs caused by high electricity prices.<\/p>\n\n\n\nIndustry both enthusiastic and apprehensive<\/h3>\n\n\n\n