EU Green Deal Industrial Plan

Solar PV has become by far the cheapest form of electricity generation in most countries across the world, leading to strong solar uptake in recent and coming years. In Europe, the market is currently on track to reach the EU Commission’s REPowerEU strategy target of 750 GWdc installed solar by 2030, up from 210 GWdc today. 

This impressive growth trajectory offers a unique opportunity to strengthen solar manufacturing along the whole value chain in the European Union and significantly improve the resilience of the EU to global crises without needing to restrict world trade and global supply relationships. The latter continues to be necessary and a guarantee for efficient markets and competition as a basis for innovation and cost reductions. 

When launching the Solar PV Industry Alliance, the European Commission put forward the ambition to reach at least 30 GW of committed European manufacturing capacity by 2025 across all the value chain segments. The investment needs to reach that target for “polysilicon-to-modules," are estimated to be around EUR 30 billion. We, however, urge the European Commission to expand the scope to all segments of the solar value chain, meaning polysilicon, ingots/wafers, cell and modules but also inverters, manufacturing and mounting equipment, solar glass, aluminium and steel.

The window of opportunity to succeed is closing very quickly, not in the least due to strong international competition in the US, China, India and elsewhere. This is now widely recognised by EU leaders, and most prominently by European Commission President von der Leyen in her recent speech to the European Parliament, calling for a Green Deal Industry Plan and a Net Zero Industry Act. 

This paper sets out key actions for the European Commission to be put in motion now to keep the ambition in reach.