In order to make Europe less dependent on other parts of the world for the energy transition, Invest-NL, in collaboration with TKI Urban Energy and Roland Berger, has mapped out the costs and strategic challenges of a European solar industry. The Solar Panel Manufacturing Cost Comparison report shows what is needed to realize a strong European basis for the production of solar panels and to achieve strategic independence. In the accompanying vision document, Invest-NL emphasizes that smart investments, effective government policy and European cooperation are needed to build a sustainable and competitive solar industry. The research is a follow-up to the previous research into the opportunities of the solar industry in the Netherlands and Europe.
The report analyses the cost difference between the production of solar panels in Europe, China and the United States. The results show that European production is currently more expensive, partly due to higher labour and energy costs. In order to achieve the European targets, this difference must be bridged. Through the Net Zero Industry Act, Europe emphasises a strong need to reduce dependence on Asian imports and to build a European ecosystem for sustainable energy technologies.
Smart investments
Europe has set a target of at least 40 percent of the technologies required for the energy transition being produced in Europe. However, this requires substantial investments and calls for a joint approach by government, business and financiers. Invest-NL sees an important role for blended finance – an approach that combines public and private resources – to mobilise the necessary capital and bridge the period of ‘uncompetitive’ production. The report estimates that a bridging investment of €27 billion could trigger a multiple of private resources to achieve the European target. This can bridge the period in which European production is still relatively expensive, thus creating space for innovation and scaling up.
European cooperation for strategic growth
With initiatives such as BatteryNL and SolarNL, the Netherlands has a strong starting position within Europe. To really make an impact, the focus must be on developing a robust European value chain. By working with countries such as France, Spain and Germany, the value chain is strengthened and we can respond more quickly to the global demand for innovative and sustainable technologies. Affordable batteries and solar panels are essential for achieving the European CO₂ reduction targets.
A shared vision on the energy transition
Invest-NL wants to accelerate the energy transition by making it financeable. Building a European solar energy manufacturing industry is closely aligned with our mission to contribute to the energy transition and strengthen our future earning capacity. At the same time, we see that developing a European solar industry brings many challenges. The report and vision document by Invest-NL and Roland Berger show that smart investments, innovative government policies and international cooperation are needed to ensure a strategically independent, sustainable future for Europe.
