Europe's photovoltaic dilemma: Outshine China or stay in the shadow

Andreas W. Bett firmly believes the European Union cannot afford to fall behind China in developing photovoltaic panels. He argues that photovoltaics can thrive without subsidies, but this approach demands bold actions from policymakers. He specifically calls on German authorities to take action.

The EU has committed to achieving climate neutrality across the continent by 2050. Yet, the push to decrease the use of fossil fuels and reduce greenhouse gas emissions heavily relies on Chinese components, enriching China at Europe's expense.

This trend is also noticeable in the automotive sector, where Chinese firms are at the forefront of electric vehicle production. However, Europe's growing reluctance toward these Chinese "electrics" is highlighted by unsold vehicles accumulating at European ports. This has sparked discussions about postponing the ban on combustion-engine vehicles to avoid disadvantaging EU industry players.

Similarly, the photovoltaic industry is experiencing a dynamic in which European production is dwindling as demand for panels rises, with 90% of them sourced from China.

Andreas W. Bett, who leads the Fraunhofer Institute—a premier centre for developing new photovoltaic technologies—insists that Europe must not concede in the technological contest with China. He advocates for substantial investments in photovoltaic innovation.

Bett outlines potential strategies, emphasizing the critical role of subsidies and financial incentives for energy producers using panels manufactured in Europe despite potentially higher costs. However, he notes a lack of enthusiasm for such measures in Germany and at the EU level.

This reluctance leaves European manufacturers struggling to compete against lower-cost Chinese components, leading to a steep decline in the German photovoltaic industry's workforce from 130,000 in 2010 to just 30,000 today. Additionally, while Germany once dominated the market with 63% of panel sales, China now controls 90%.

Bett further highlights the essential strategy of investing in technology, pointing out that China often replicates developments from other countries. He suggests that advancing technology and components is the key to outpacing Chinese panel producers.