Solar power surpassed the 1 TW mark earlier this year, a milestone worth celebrating - what is its future development potential?
Indeed, earlier this year solar entered the Terawatt age, we are now producing globally the energy equivalent of seven EU member states in terms of electricity demand. Additionally, we installed 168 GW of solar power in 2021 worldwide, which was more than half of the newly installed renewable energy capacity last year.
As for the future it can play in decarbonization efforts, the EU Commission has launched RePowerEU and the EU Solar Strategy, with ambitions to reach 750 GW of installed solar capacity by 2030, 44% more than what they initially had in store.
The plan is laid out, and it has an element of immediacy to it. Yes, we need to decarbonize, but in light of the Ukraine conflict we clearly also need to become more resilient and independent from Russian fossil fuels. The Commission asked us what we could do to help, and although solar cannot single handedly save the day, our response was that the 39 GW planned for 2022 are becoming reality this autumn. But let us be clear - the true benefits of solar will show mid-term, once we are able to scale up in a powerful way.
Is the path cleared for these large scale-ups? What are the most significant bottlenecks holding the industry back?
We are dealing with the same challenges plaguing all renewable energy development, such as slow permitting processes for utility scale solar. The EU Commission did pick it up in the latest draft guidelines, but more needs to be done to get projects off the ground faster. Likewise, there is the issue of integrating renewables into the grid, the solution to which is extending the grids, but also making them smarter and adding storage capacity.
Very importantly, we need skilled workers in order to make the energy transition happen. Solar is the most job intensive sector amongst its green energy peers, we provide two third of all jobs. We are looking at over 4 million jobs by 2050, and already 1 million by 2030. And these are highly attractive jobs, well-paid, local, and opening a wide window for reskilling from declining fossil-fuel sectors..
Solar manufacturing supply chains are still dominated by the Far East. How is Europe keeping its competitive edge?
This topic has been tackled far more directly since the Ukraine invasion. The solar segment (as well as many others) is indeed not very globally diversified as far as supply chains are concerned. The EU Commission understands that resilience and reshoring to Europe need to be very high on their agenda. The sector does need to remain a global one, definitionally even, but for the time being Europe must step up its game, it is just the healthy thing to do. We just had a meeting with the Commission on shaping a Solar Industry Alliance. We expect this to help, because in the end what we need is scalable innovation to remain competitive at a global level.
How are renewables impacting the recent energy price spikes?
In a positive way! Solar costs have gone down considerably, 90% in the past few years, and they keep doing so. Even in light of the impact of inflation BloombergNEF identified solar and wind as the cheapest forms of electricity, by far outcompeting gas, nuclear and fossil fuels. Consequently, many large scale companies are entering PPAs (power purchase agreements) to pay stable prices for their electricity. Even individuals are running to install solar panels, which in combination with a heat pump are by far the best way to beat price spikes.
What is the main message about solar energy that you want to leave our audience with?
Solar is incredibly versatile and it is leading the energy transition. Sure, we have the large scale utility plants, but we also have rooftops, agri-pv, floating pv and just the other day one of our members showed us how solar panels were being used on refrigerated trucks, reducing their energy consumption dramatically.
But in order to make it happen we need good people. So, the main message I want to leave everyone with is: roll up your sleeves! High skilled jobs are waiting for you, and you can be an active part of the energy transition.
