Germany's Federal Ministry of Economics and Climate Protection (BMWK) has initiated a call for expressions of interest (EoI) aimed at bolstering the country's solar photovoltaic (PV) manufacturing supply chain. The objective is to establish a solar PV manufacturing capacity of 10GW per year, covering the entire value chain from silicon to modules, with a specific target of at least 2GW for module production alone.
By soliciting EoIs, Germany intends to attract companies to establish a presence in the country, thus boosting domestic solar manufacturing capacity. The BMWK has set certain requirements for potential participants, including a module efficiency exceeding 24%, exclusion of soldering processes in module production, recyclable module designs, including disclosure of the composition of the modules, and module degradation of less than 0.2% per year.
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Robert Habeck, the Federal Minister of Economics and Climate Protection, emphasized the need for Germany and Europe to develop their own production capacities for transformative technologies. He highlighted that this is not only an economic matter but also crucial for economic security. Habeck pointed out that the European Union's new subsidy framework provides opportunities for achieving this goal, and Germany aims to leverage these opportunities. The initial focus is on photovoltaics, and the country intends to financially support flagship projects to establish sustainable photovoltaic production within Germany. This approach not only strengthens Germany's technological and energy-political sovereignty but also contributes to the overall vision of a sustainable future.
Germany has long been at the forefront of solar technology in Europe, with notable companies such as polysilicon supplier Wacker Chemie, module manufacturer Meyer Burger (which plans to build 3GW of cell capacity in Germany), and Chinese cell manufacturer Aiko Solar setting up research and development facilities in the country. Germany's latest efforts to fund domestic manufacturing align with the European Union's Green Deal Industrial Plan, which aims to surpass Europe's target of achieving 30GW of annual solar PV capacity across the entire value chain by 2025, as projected by the European Solar PV Industry Alliance (ESIA). This initiative seeks to place Europe on an equal footing with the United States' Inflation Reduction Act and India's Production Linked Incentive.
To support its domestic solar manufacturing sector, Germany aims to utilize the Temporary Crisis and Transition Framework (TCTF), which was expanded by the European Union in March. The TCTF aims to provide assistance to industries striving for net-zero emissions. By leveraging this framework, Germany aims to enhance its domestic solar manufacturing industry.
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Dries Acke, the policy director at the trade association SolarPower Europe, stressed the importance of Germany's proposal, calling it the first litmus test of the European Union's revised subsidy rules. Acke urged the European Commission's Directorate-General for Competition (DG COMP) to promptly approve Germany's proposal, highlighting that it brings the Green Deal Industrial Plan to life and provides guidance to other EU countries on how to align their clean tech industrial objectives with EU subsidy regulations.
Germany's call for expressions of interest marks a significant step in strengthening the country's solar PV manufacturing capabilities and supporting the larger European goal of sustainable energy production.
Publication of the EoI can be read here, with the deadline for applications set to 15 August 2023.
