What went on at Intersolar Europe 2024?

The European Union has set a goal of at least 30 GW of European solar manufacturing, at each stage of the value chain, by 2030. Right now, however, European solar manufacturers are facing a crisis. Market forces are driving down the price of solar components, making it difficult for Europe’s solar industry to sell their products. Some parts of the European solar value chain are particularly impacted, like solar modules and wafers. We continue our urgent calls to support these critical links in the solar-led energy transition.

Every year, as the continent’s largest trade fair, Intersolar Europe brings together the solar community, with 2024 welcoming a record 110,000 attendees. Alongside the exhibition runs a packed conference and side session agenda.

Traditionally, SolarPower Europe’s Global Market Outlook for Solar Power is published at Intersolar – read the 2024-2028 edition here. This year also marked the launch of our ‘Inverters 2.0’ market analysis and policy recommendations, our annual manufacturing booth tour, and the return of the European Solar PV Industry Alliance Forum. While at Intersolar, and meeting with representatives of the European Commission, we also took the opportunity to publish our recommendations for auction design under the Net-Zero Industry Act. Read on to recap the highlights.

Policy Friday Focus: Inverters Explained 2.0: Strengthening Europe’s inverter industry

We call inverters ‘the brain’ of a solar system. Converting DC to AC, inverters make it possible to use solar electricity. Crucially, inverters are a key tool supporting the grid with smart digital solutions that help balance generation with demand. Our latest paper maps the inverter industrial landscape in Europe, and plots a way forward.

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), employing around 35,000 people. There are at least 14 inverter companies operating in the EU. However, while some EU inverter companies keep growing and announcing reinvestment plans, their relative market share in Europe is shrinking.

The electrification wave is a critical opportunity for Europe’s inverters to seize the innovation edge and establish a competitive global market share. Critically, alongside other recommendations, we propose establishing an Important Project of Common European Interest (IPCEI) as a foundation for Europe to entrench its world-leading spot in inverters that go the extra mile – supporting the grid, securing cyber-preparedness, and strengthening digital interoperability.

The key opportunities and objectives of the IPCEI would target improvements in:

• The technical capacity of power electronics.

• Access to critical components of inverters, and a decrease in material requirements.

• Grid forming abilities, to support greater, smoother, solar integration into the grid.

• Enhanced cybersecurity capacity and strengthened digitalisation, which would include a roadmap for cyber-preparedness in solar inverters and ensuring interoperability between European inverters and the energy system.

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 Kerstin Jorna, European Commission Director-General for Industry, and Olivier Guersent, Director General for Competition, these meetings evaluate candidate technologies, and decide on which are suitable for the IPCEI procedure.

The paper ‘Inverters 2.0: Strengthening Europe’s inverter industry’, was presented to Kerstin Jorna, the European Commission's Director-General for Internal Market, Industry, Entrepreneurship and SMEs, in Munich by: Carlos Llombart, Power Electronics; Katharina Luise Eickelberg, SMA Solar Technology AG; Martin H., Fronius International; Matthias Haig, KACO new energy; and Walburga Hemetsberger, CEO of SolarPower Europe.

Net-Zero Industry Act Auctions

The Net-Zero Industry Act final text will soon be published the Official Journal of the EU, which means its Implementing Act will soon follow – likely by Spring 2025. This Act will set the technical details of the law, like how awards and pre-qualification rules will apply to bids into renewable energy auctions. Typically, Implementing Acts are usually adopted directly by the European Commission, via committees with representatives from EU countries.

To support the legislative process, we've published our recommendations (here) on what the Net-Zero Industry Act's rules on renewables auctions should look like.

Importantly, applying non-price criteria to auctions will only work if they are targeted and technology-specific. It is not possible to apply the same criteria and metric to all net-zero technologies.

Non-price criteria on sustainability and resilience must be applied as 'award' criteria, ensuring better performers are rewarded for their efforts. We strongly advise against applying sustainability and resilience as 'pre-qualification' criteria, if Europe is to avoid scarcity of products and undersubscribed tenders.

We want to be able to launch specific 'solar resilience auctions' - meaning much needed offtake visibility for European solar products - while avoiding complexifying the rest of the auction market. Therefore, we propose that non-price criteria should only apply to a sensible proportion of the auction market. For solar, we recommend a share of around 5 GW in 2026, building to 30 GW in 2030 across the EU.

In defining resilience – we recommend using a definition of global diversification - i.e. other than the dominant source of supply - with additional bonus points for European content. And more widely, carbon footprint criteria should be the dominant factor under the sustainability criterion.

Meeting Manufacturers

At Intersolar, we also joined with the European Solar PV Industry Alliance for the second annual EU Solar PV Industry Forum.

Then, it was a pleasure to visit the booths of European solar manufacturers with EU Director-General for Industry Kerstin Jorna and our CEO Walburga Hemetsberger. Manufacturers from across Europe shared their latest breakthroughs, and their proposals for the implementation of the Net-Zero Industry Act.

Holosolis HELIUP 3SUN NexWafe Schletter Group

Along the way, we also had the pleasure of seeing where innovation can take us, with BayWa r.e. EMEA and SolAqua showcasing wonderful advancements in floating solar and agrisolar.

Solarcoaster

The latest ups and downs in the EU solar manufacturing landscape.

SUPPORT - While Austria introduces a subsidy for "Made in Europe" solar, Switzerland rejects domestic support measures. 

INNOVATION - Spanish tracker companies innovate: Soltec launches floating PV trackers, Axial unveils new dual-row trackers and startup Soletrax creates tailor-made trackers. 

CLOSURE - Solarnative files for insolvency after failed attempt to find buyer.  

Solar Manufacturing Matters is a fortnightly newsletter on the European solar manufacturing landscape. Every other Friday, check out our latest EU policy analysis and a roundup of solar manufacturing market news. The next edition of Solar Manufacturing Matters will come in September 2024.

From SolarPower Europe, the award-winning European trade association with over 300 members active at every point in the solar PV value chain.