Inverters 2.0: Strengthening Europe’s inverter industry
An IPCEI for Inverters. Improving technical capacities. Access to critical components. Grid-forming abilities. Enhanced cyber-preparedness. Ensuring interoperability.
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Europe has a strong foundation in its inverter manufacturing industry. In 2023, there was equivalent of 82.1 GW of solar inverter manufacturing capacity in the EU (compared to around 60 GW of solar installed in the same period). The industry employed around 35,000 jobs in the EU in 2023, making it the most significant contributor of solar manufacturing employment in Europe.
However, European inverter manufacturers are facing pressure and growing competition. While some EU inverter companies keep growing and announcing reinvestment plans, their relative market share in Europe is shrinking. It is estimated that EU inverter manufacturers are only able to capture 20% of the market currently.
Right now, European inverters have a critical opportunity to further tap into the technological advancements needed for the electrification and digitalisation of the energy system. Creating an Important Project of Common European Interest would empower the EU inverter ecosystem to maintain an innovation edge, globally.
The key opportunities and objectives of the IPCEI would target improvements in:
Technical Capacities
Goal: Scale production and increase blocking voltage. Renew of power electronic components.
Description: Finance industrial lines to facilitate the scaling of power electronic production and enhance their blocking voltage capabilities and efficiency.
Critical Components
Goal: Decrease material requirements, enhance component connectivity and control, and develop local production capabilities.
Description: Develop the next generation of control systems for critical components, identify and facilitate sourcing of essential components, and design for reuse and materials recovery to reduce resource consumption (recycling).
Grid Forming
Goal: Improve capabilities and automate software control for grid integration.
Description: Collaborate with grid operators and system integrators to co-create technology solutions aimed at enhancing grid-forming capabilities and automating software control for better integration with grid infrastructure.
Cybersecurity and Digitalisation
Goal: Enhance cybersecurity measures and strengthen interoperability and system integration.
Description: Develop a roadmap for improving cyber-preparedness in solar inverters, focusing on enhancing cybersecurity measures and ensuring seamless interoperability and integration within the broader energy system.
Disruptive Architecture
Goal: Develop a novel disrupting architecture for PV system with a focus on medium voltage applications.
Description: Research and Development at the System Level. Engage in comprehensive R&D to innovate the overall system architecture for PV systems, specifically targeting medium voltage applications and global innovation fields.
Three key projects under the IPCEI would focus respectively on; better hardware, smarter software, and a ‘disruptive’ technological breakthrough. With Germany, Austria, Spain, and Italy currently hosting the most inverter manufacturing capacity, the proposal identifies the countries as the potential member state leaders of the project.
The next meetings of the Joint European Forum for IPCEI (JEF-IPCEI) will take place in Q4 2024. Chaired by Ms Jorna, and Olivier Guersent, Director General for Competition in the European Commission, these meetings evaluate candidate technologies, and decide on which are suitable for the IPCEI procedure.
Read more about how IPCEIs work here.
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