First, faster and broader deployment of renewable energy will be key to the European Union (EU) achieving its 2030 target of at least 42.5% renewable energy by 2030, with the aspiration to reach 45%, and the goal of climate neutrality by 2050.

Solar energy is said to be currently the fastest growing renewable energy sector in the EU, leading to record numbers of annual installations in the last three years – around 28 GW in 2021, 41 GW in 2022 and 56 GW in 2023, according to the European Commission (EC). However, the bulk of the demand for solar modules in Europe is catered by imports. Currently, 97% of the solar panels imported into the EU come from suppliers in a single country, China, a concentration that creates short-term risks for the resilience of the value chain and long-term risks for price.

European solar module manufacturers have also been facing a sharp drop in the prices of imported panels. In 2023, the solar PV sector in the EU and globally saw prices plummeting from around 0.20 €/W to less than 0.12 €/W. This has led to some European companies either reducing their operations, announcing that they will prioritise production in other international markets, in particular the US, or even announcing closure.

As a result, the EC, together with 23 European Union (EU) member states and industry representatives, including Solarwatt, Enel Group and Engie, have stepped up efforts to support solar panel manufacturing in Europe through a new European Solar Charter. The Charter sets out a series of voluntary actions that aim to promote the ‘creation of a market for high-quality products meeting high sustainability and resilience criteria, in full respect of the EU’s climate and energy objectives.’

Proposed actions include early implementation of relevant provisions in the recent Net-Zero Industry Act (NZIA) and promotion of innovative forms of solar energy deployment, such as agri-PV, floating solar, infrastructure-integrated PV, vehicle-integrated PV or building-integrated PV. The NZIA aims to ensure that the EU’s overall strategic net zero technologies manufacturing capacity, including solar PV, approaches or reaches at least 40% of the region’s annual deployment needs by 2030. The Act includes concrete measures such as accelerated permitting or market access facilitation through the use of non-price criteria in public procurement, renewable energy auctions and other support schemes.

The Charter also aims to support the efforts of the European Solar Photovoltaic Industry Alliance, which was launched in December 2022 with the target of 30 GW of production capacity along the value chain by 2030.

Speaking after the signature ceremony, Commissioner Kadri Simson said: ‘The solar photovoltaic manufacturing sector is key for achieving our energy, climate and competitiveness goals. We must ensure the solar industry remains strong for Europe’s future renewables-centred energy mix.’

SolarPower Europe CEO Walburga Hemetsberger added: ‘Building on the 2022 EU Solar Strategy, the EU Solar Charter reinforces the reality that solar PV is now a mainstream energy technology… The Continent’s governments have made a high-level promise to our manufacturers, recognising their critical role in the strategic supply chains of today and tomorrow. Nevertheless, we continue to urge rapid action and concrete measures at national and EU level to support manufacturers. This means rolling out resilience criteria in public procurement and auctions as soon as possible, unlocking subsidy support, and establishing dedicated EU financing for solar.’

She also noted: ‘With manufacturers in crisis, and the double-digit growth of solar deployment under threat from grid and permitting delays, the EU Solar Charter is one chapter in Europe’s solar story. Delivering accelerated solar deployment growth is key to ensuring a market for European solar manufacturers – it is important that ministers also took the opportunity today to discuss Europe’s energy infrastructure and supporting the flexibility of our grid.’

Plan to triple supply chain manufacturing for UK offshore wind

Second, RenewableUK, the Offshore Wind Industry Council, The Crown Estate and Crown Estate Scotland have published a detailed Industrial Growth Plan (IGP) that aims to triple offshore wind manufacturing capacity over the next 10 years.

The UK offshore wind industry employs 32,000 people. Each new large offshore wind farm adds £2–3bn to the economy, according to RenewableUK. Employment is set to rise to over 100,000 by 2030 and investment in new offshore wind projects will create an economic opportunity worth up to £92bn for the UK by 2040, it reports.

The measures set out in the IGP aim to support an additional 10,000 jobs a year and boost the UK’s economy by a further £25bn between now and 2035, if offshore wind deployment is accelerated in line with the net zero target of 5–6 GW/y. The UK has the second largest global pipeline of offshore wind projects at all stages of development, at nearly 100 GW – more than six times the country’s current capacity, according to the IGP.

The IGP’s analysis suggests that supply chain constraints in many of the key components needed in offshore wind farms are already starting to be felt in the global market. It identifies strategic new factories and manufacturing capabilities which the UK should build up to protect against supply chain risks and boost economic growth, and highlights five key technology areas in which investment should be prioritised to secure value for UK industry. These include the design and manufacture of offshore wind blades and turbine towers, foundations, cables and other key components and services for domestic and overseas projects.

The IGP also highlights the industry’s potential to drive technology innovation, accelerate deployment and cut environmental impacts further by incorporating automation and AI technologies in new projects. It sets out plans to expand testing facilities for cutting-edge technology, such as new materials for blades and designs for floating offshore wind platforms, as part of a focus on R&D at a potential new Advanced Technology Institute and a new National Innovation Hub.

Commenting on the plan’s publication, RenewableUK’s Chief Executive Dan McGrail said: ‘Our Industrial Growth Plan is the deepest dive ever into the offshore wind supply chain, identifying the highest-value components and services which the UK should focus on to get the biggest economic bang for our buck from future wind farm development. For example, it shows that the UK will need 300 giant turbine towers every year for offshore wind projects between now and 2030 to deliver government targets. The Plan charts a clear course for us to ensure that we seize that massive economic opportunity and maximise our opportunities to manufacture those towers here, along with more blades, cables, foundations and a whole range of other products… By using this as a blueprint to work closely with all our partners in the sector, we can triple the size of that supply chain, ramp up our offshore wind capacity significantly and secure a huge increase in jobs, all within the next 10 years.’