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Energy

Solar energy

Solar energy plays a key role in the clean energy transition. It will contribute to reaching the objectives of the REPowerEU plan and reduce the EU’s dependence on fossil fuels.

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Solar energy technologies convert sunlight into energy, either as electricity (photovoltaics and concentrated solar power) or in the form of heat, in the case of solar heat.

Solar is the source of energy that is growing at the highest pace in the EU. In 2020, the EU solar market grew by 18 GW and 5.2% of the EU’s total electricity production came from solar energy. Solar energy is cheap, clean, modular and flexible. The cost of solar power has decreased by 82% over the last decade, making it the most competitive source of electricity in many parts of the EU.

The EU has since long been a front-runner in the spread of solar energy. The European Green Deal and the REPowerEU plan have turned solar energy into a building block of the EU’s transition towards clean energy. The accelerated deployment of solar energy contributes to reducing the EU’s dependence on imported fossil fuels. In addition, solar energy is the most accessible renewable energy for households and contributes to protecting consumers from volatile energy prices.

EU solar energy strategy

As part of the REPowerEU plan, the Commission adopted in May 2022 an EU solar energy strategy, which identifies remaining barriers and challenges in the solar energy sector and outlines initiatives to overcome them and accelerate the deployment of solar technologies. Alongside the plan, the Commission also presented a Recommendation on fast permitting for renewable energy projects and a legislative proposal on permitting that will contribute to accelerate solar energy deployment in the EU.

The EU solar energy strategy proposes 3 initiatives:

European Solar Rooftops Initiative 

The initiative aims to accelerate the vast and underutilised potential of rooftops to produce clean energy. It includes a proposal to gradually introduce an obligation to install solar energy in different types of buildings over the next years, starting with new public and commercial buildings, but also residential buildings.

EU large-scale skills partnership 

This partnership will address the skills gap in the EU and promote the development of a skilled workforce in the solar energy sector. Current bottlenecks in the workforce will become an opportunity for new green jobs in the clean energy transition. 

EU Solar PV Industry Alliance

This alliance aims to become a forum for stakeholders in the sector and help diversify the supply chains, retain more value in Europe and deliver efficient and sustainable PV products to help avoiding supply risks for the necessary massive deployment of solar energy in the EU. The Commission formally endorsed the “kick-off” of the Alliance on 11 October 2022.

Through these initiatives, the strategy aims to bring online over 320 GW of solar photovoltaic by 2025 and almost 600 GW by 2030.

Photovoltaics

Photovoltaics is a method to generate electric power by using solar cells to convert energy from the sun by photovoltaic effect. These solar cells are assembled into solar panels and then installed on the ground and rooftops, or floating on dams or lakes. The EU is funding many solar cells projects, such as the PERTPV project, in which perovskite-based materials were used to build a new type of solar cell.

The photovoltaic technology is becoming more widely used globally. Year on year, photovoltaics make up a bigger part of the EU’s energy mix. In 2021, the EU output of photovoltaic electricity accounted for 5,5% of the EU’s gross electricity output.

Continued growth in the solar energy sector is expected in the coming decades, mostly driven by increased self-consumption and more rooftop photovoltaics installation. This puts the EU at a competitive advantage, helping to drive economic growth and create jobs. By 2020, the solar PV industry created around 357,000 jobs, and it is expected to create 584,000 jobs by 2025, and around 1.1 million jobs by 2030, according to the industry.

Concentrated solar power

Concentrating Solar Power (CSP) plants use mirrors to concentrate sunlight and produce heat and steam to generate electricity. They can be coupled to heat storage technologies to produce electricity both day and night. About 2.3 GW of concentrated solar power has been installed in the EU since 2013, but most new projects take place outside of the EU.

Solar thermal technologies

Solar thermal technologies are used mainly to produce domestic hot water in residential buildings and industry through heat collectors. Concentrated solar heat technologies can also be used to provide heat for industrial applications and district heating. The main advantage of solar thermal is that it is cheap, predictable and does not rely on any fuel.

Solar thermal technologies can be deployed in most European regions and are a particularly good option in Europe’s Eastern and South-Eastern countries, where solar thermal heat is often the cheapest option to replace fossil-fuel heating.

The integration of solar collectors in energy-efficient renovations of housing and buildings can contribute to the expansion of these technologies.

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