Essay by Eric Worrall
First published on JoNova; Despite green claims renewables are the cheapest form of power, renewable manufacturers are struggling to survive Europe’s soaring energy prices.
European solar PV manufacturing at risk from soaring power prices – Rystad
By Jules ScullyOctober 6, 2022
Around 35GW of PV manufacturing projects in Europe are at risk of being mothballed as elevated power prices damage the continent’s efforts to build a solar supply chain, research from Rystad Energy suggests.
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Audun Martinsen, Rystad Energy’s head of energy service research, said high power prices not only pose a significant threat to European decarbonisation efforts but could also result in increased reliance on overseas manufacturing.
“Building a reliable domestic low-carbon supply chain is essential if the continent is going to stick to its goals, including the REPowerEU plan, but as things stand, that is in serious jeopardy,” he added.
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Shortly after the above was published, a French solar module plant was closed;
Maxeon closes French solar module manufacturing plant
By Jules ScullyOctober 7, 2022
Maxeon Solar Technologies has shut down a PV module manufacturing plant in France, citing a challenging price environment.
The facility was impacted by rising costs and taxes on raw material imports, according to a Maxeon spokesperson.
“The production price of the Porcelette plant no longer allows us to be competitive on the European market,” the spokesperson said in a statement sent to PV Tech.
Located in northeastern France, the facility was inaugurated in 2012. According to press release from that year, the plant had a 44MWp production line capable of producing 150,000 solar panels annually.
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The obvious question, if renewables are so cheap, why don’t these plants relocate to a large plot of land, disconnect from the grid, and power their manufacturing facilities from their own low cost renewable energy products?
Seems an obvious solution – but for some reason renewable manufacturers seem to be choosing to shutter their plants, rather than switching to consuming their own product.