{"id":13374,"date":"2023-07-26T14:23:42","date_gmt":"2023-07-26T14:23:42","guid":{"rendered":"http:\/\/TheNextWeb=1398623"},"modified":"2023-07-26T14:23:42","modified_gmt":"2023-07-26T14:23:42","slug":"europe-stockpiles-e7b-of-chinese-solar-panels-in-bid-for-energy-security","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=13374","title":{"rendered":"Europe stockpiles \u20ac7B of Chinese solar panels in bid for energy security"},"content":{"rendered":"\n

When Russia cut off Europe\u2019s gas supply following the invasion of Ukraine, it exposed the vulnerable underbelly of a continent largely <\/span>reliant<\/span><\/a> on imported energy. <\/span><\/p>\n

To be fair, the bloc responded pretty quickly by sourcing gas from other countries and <\/span>stockpiling<\/span><\/a> it for a rainy day. And, it turns out, Europe was also hoarding mountains of another commodity: solar panels.  <\/span><\/p>\n

Some \u20ac7bn worth of solar panels \u2014 or 40 gigawatts direct current (GWdc) of capacity \u2014 are currently gathering dust in European warehouses. That\u2019s enough to power 20 million homes a year. <\/span><\/p>\n

The stockpile is expected to more than double in size by the end of 2023, according to <\/span>Rystad Energy<\/span><\/a>, who conducted the research. <\/span><\/p>\n

\n
\n
<\/div>\n

\n

The <3 of EU tech<\/p>\n

The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now!<\/p>\n<\/div>\n<\/div>\n<\/div>\n

It wasn\u2019t the war in Ukraine that drove this Black Friday-esque buying spree, however, but Europe\u2019s green agenda. <\/span><\/p>\n

\u201cEuropean countries are desperate to get their hands on affordable solar infrastructure to advance their renewable energy targets, decarbonise, and avoid paying elevated prices for new capacity,\u201d said Marius Mordal Bakke, senior supply chain analyst at Rystad Energy.<\/span><\/p>\n

Driven by policies like the Green Industrial Plan and RePowerEU, Europe\u2019s spending on solar imports has almost quadrupled in the last five years, surging from \u20ac5.5bn in 2018 to more than \u20ac20bn last year. <\/span><\/p>\n

An overwhelming 91% of this money was spent on panels from China. The Asian powerhouse produces four out of five of the world\u2019s photovoltiacs, partly thanks to its tight grip over the building blocks of the technology <\/span>\u2014 polysilicon, ingots, wafers, cells, and modules. <\/span><\/p>\n

China\u2019s dominance over the PV supply chain means they can offer quality panels at dirt cheap prices. Today, Chinese solar panels are up to two-thirds less expensive than those made in Europe.  <\/span><\/p>\n

A catch-22<\/b><\/h2>\n

The EU wants to source 45% of its energy from solar and wind by 2030. It also wants to produce 40% of the panels it uses <\/span>locally<\/span><\/a> within the same timeframe. But, currently, locally-made modules cannot compete with cheaper imports, not by a long shot. <\/span><\/p>\n

This leaves policymakers with a dilemma: wait for domestic PV production to ramp up and risk stalling the energy transition, or import them and risk becoming dependent on China for supply. Currently, it seems Europe is opting for the latter.     <\/span><\/p>\n

\u201cAlthough efforts are underway to build a reliable solar supply chain in Europe, the need for panels now means leaders cannot wait until 2025 or later to buy European,\u201d said Bakke. <\/span><\/p>\n

Chinese solar panels are heading to several key countries, including the Netherlands, Spain, Germany, Poland, France, Greece, Italy, and the UK. <\/span><\/p>\n

The Netherlands, despite being the smallest country on the list, was the standout leader in Chinese PV imports in 2022, bringing in almost 45 GWdc.    <\/span><\/p>\n

Most of these countries imported far more panels than they installed. This trend is set to continue as PV installations lag behind the rate of imports due to bottlenecks such as labour shortages and material shortages. <\/span><\/p>\n

\"solar-panels-europe-china
<\/i><\/a>European solar installations versus imports from China. Credit: Rystad Energy<\/figcaption>