Explore certain aspects of the future of the European solar market, focusing on the year 2025. Discover how Europe is pushing for change in the direction of a more sustainable and green energy use.
Europe, especially, has been forefront in the long-term utilization of Renewable Energy Sources (RES). It has set out on the path towards the rather lofty goal of total carbon zero emissions. This makes it possible for countries in a large geographical area to harness and produce large quantities of power from various renewable energy sources.
Solar energy is undoubtedly one of the most abundant natural resources on the planet. In fact, one hour of sunlight on the surface of the Earth could provide enough energy to sustain the world’s thirst for a whole year. This is why it is a fundamental constituent in attaining this goal. However, as you can amass limitless power, some concerns come with it.
In this article, I will describe how solar power and other renewable energy sources are viewed in terms of the future and current outlook for European nations. In this article, we will discuss the possibilities and drawbacks of one of nature’s gifts- the sand.
Herwe will discuss the various policies and frameworks on renewable energy in the European Union. Furthermore, we shall be able to acquire more information on sustainable technology developments for the next advancement, identify essential challenges limiting the use of solar energy in the current situation, and, therefore, participate in a discussion on available opportunities for investment.
In general, this article’s goal is to present a comprehensive guide to the impact of Europe on the future of the solar project and the energy sector of the region.
The Present State of the Solar Energy Market in Europe
The current status of solar power in the European Market
In the recent past, the European solar energy market has experienced steady growth. The following are the causes for this growth. This may include advancements in technology, the cost associated with the installation of solar products, and awareness of the impact we have on the environment.
The European Union Annual Solar PV Installed Capacity – 2000-2023 (Source: Market analysis of solar power in the EU for the period of 2023-2027)
The European countries that have taken the lead in this upward progression are Germany, Spain, and Italy. From their data, we can observe a significant increase in installed solar capacity. The growth has been further built by the new ambitious renewable energy targets. In this aspect, Solar energy has been noted to be playing a very important role in the achievement of this objective.
EU Annual Solar PPV Installed Capacity 2000-2023 (Resource: EU Market Outlook For Solar Power 2023-2027)
European Solar Market Growth and Projection Trends
The European solar market is showing a strong and steady growth. PV Europe’s analysis forecasted a 53.6 GW average increase in EU solar power system capacity in 2023.
With this projection providing the most likely development path, a minimum additional 85 GW per annum of new solar power would need to be installed by 2026. As a result, the EU solar market is set to more than double its current capacity in the forecast period over the next four years. Therefore, this will grow up to a staggering 484 GW by 2026. Europe, for instance, has better solar panels, but also puts solar systems on smart grids to do things right.
Here are generations of solar cells generated using research, so that we can understand, based on research, how the technology of Solar Energy is evolving and progressing with time;
1. First Generation: Crystalline Si Solar Cells
Crystalline silicon (c-Si) cells have been widely used as traditional solar cells. These cells are, however, very expensive because they are made of costly pure silicon crystals. These limitations have led researchers to look for other options in Europe. They are looking at amorphous silicon cells, which may be superior, and are economical and perform at efficiencies of 6 percent to 44.0 percent. However, these cells pose problems when it comes to thinking of mass production. In this regard, the European solar industry plays an active role in searching for improvements regarding the cost-effectiveness of first-generation solar cells.
2. Second PV Generation: Thin-Film Solar Cells
In the second generation of solar cells, Europe is very much interested in thin film solar cells. These cells are made of materials such as amorphous silicon, polycrystalline CdTe, or polycrystalline Cu(In, Ga)Se2 (CIGS). Furthermore, the region resorts to electrochemical deposition, chemical bath deposition, spray pyrolysis, and spin coating to reduce the cost. However, these second-generation solar cells are great because they can be manufactured on a large scale and are ideal for use. It is compatible with the European goal to find sustainable and economically viable solutions for energy.
3. Third-Generation Solar Cells
Third-generation solar cell technologies have received considerable attention and investment in Europe. But these new technologies basically are made up of multiple layers called tandem cells that utilize both silicon and thin film materials. Currently, scientists are exploring materials such as copper zinc tin sulfide (CZTS) and perovskite. In particular, it is possible to note especially good research results of Perovskite, which exceed 20% efficiency.
On top of that, it makes them very promising for the future. Practically the entire European solar R&D community continues its work to solve the stability and efficiency problems connected with this third generation of solar technologies. And so they are paying particular attention to their use in, say, building integrated solar panels, or portable electronic devices, among other things.
4. Dye Sensitized Solar Cells (DSSCs) and Organic Solar Cells (OSCs).
Dye Sensitized Solar Cells (DSSCs) and Organic Solar Cells (OSCs) form part of the third generation of solar technologies in which Europe has now shown keen interest. DSSCs are valued by the region for the fact that they can be flexible in design and are cost-effective. Furthermore, OSCs have the capability to adjust to an unconventional shape. All of these features are very in line with what Europe wants in solar energy. Although researchers are persistently trying to overcome challenges like providing stability under harsh conditions and higher efficiency at low rates.
Solar Markers Trend in Europe
Well, here is a table with a prognosis of European countries in the solar market until 2028, based on the EU Market Outlook for Solar Power 2023-2027.
- France’s Projected Growth: Therefore, let me discuss the current development of France’s solar energy market. The market size is expected to be 3.0 gigawatts in 2023 and is expected to reach 39.11 gigawatts by 2022 with a CAGR of 14.24% for the period of forecast period.
- Solar Power Landscape in Germany: Raising the level of the installed capacity to new highs, the German solar power sector achieved a very important turn in 2022.
- Spain’s Consistent Revenue Growth: Spain’s solar photovoltaic industry has been reporting higher revenues for at least five consecutive years. The sector had generated an income of around four billion euros in 2016; it was boosted to over ten billion euros in 2021.
- The Solar Market in Italy Grows Slowly but Surely. In the given forecast period of 2024-202,,8 this market is expected to have a CAGR of 1.63% and a projected market size in Italy.
European Union Regulatory Development Measures
The growth of the solar energy market in the European Union heavily relies on regulatory developments in the European Union. This guarantees the sustainability and integration of the solar energy market in other large energy systems.
Therefore, in this post, I list some important EU regulatory aspects and developments.
1. Revised Renewable Energy Directive (EU/2023/2413)
As part of the REPowerEU plan, the EU adopted the revised Renewable Energy Directive (EU/2023/2413), including provisions on permitting of renewable energy projects. The goal of these measures is to smooth out the processes of authorizing solar energy projects. Additionally, it helps to speed up the deployment of solar energy in the EU.
2. EU Solar Energy Strategy:
To this end, the EU Solar Energy Strategy was launched in May 2022 to propose action needed to remove new barriers and challenges in the solar energy sector. Solar photovoltaic capacity is targeted ambitiously, at over 320 GW by 2025 and over 600 GW by 2030. The strategy points out the role of solar energy in the move to clean energy in the EU and less dependence on imported fossil fuels.
3. European Solar Rooftops Initiative
This is a plan by the EU to utilize rooftops for producing clean energy. In the next few years, this is something they want to make a rule so that on different types of buildings, they’ll have solar panels. First, they want to kick off with new public and commercial buildings. This plan, They are looking at it now, whether to pass or not, as they consider the Energy Performance of Buildings Directive.
4. EU Large-Scale Skills Partnership
The EU Large-Scale Skills Partnership (EU LSSP) was launched in March 2023 to bridge the renewable energy skills gap. To expand clean energy jobs in the clean energy transition, this initiative will seek. It will promote the development of a skilled workforce as the solar workforce overgrows.
5. EU Solar PV Industry Alliance
Jointly established in October 2022 with EU Commission backing, the EU Solar PV Industry Alliance is a players, research institutes, associations, and stakeholders joint initiative. According to the alliance, investment opportunities for European solar PVs are aligned with the goals of the EU’s Solar Energy Strategy. By increasing the diversity of the supply chain and promoting efficient & sustainable PV products. In addition, it also aims for 30 GW of committed European manufacturing capacity by 2025. It foresees great economic growth and job creation.
6. Photovoltaic Technology Funding
Solar cell projects, like the PERTPV project, which looks at developing new solar cells using perovskite, a new class of materials, are being actively funded by the EU. This funding helps to advance photovoltaic technology and to further the use of photovoltaics in the EU’s energy mix.
7. Integration of Solar Collectors into Energy-Efficient Renovations
Solar thermal technologies like solar collectors may be integrated with existing energy-efficient renovations in housing. Besides this, its regulatory efforts could encourage such an integration. The expansion of solar thermal technologies is contributed to by this integration, especially in the Eastern and South-Eastern. European countries where solar thermal heat is cost-effective compared to fossil fuel heat.
Government Policies and Incentives
Europe regards solar energy increasingly as important. Solar is growing a lot, and they’re rules and new changes are making it a large part of Europe’s plan for a better and greener future.
Hence, the focus on policies of carbon reduction and promotion of renewable energy has made the solar energy sector conducive for investment, and it continues to flourish.
Opportunities and risks in European markets
Thus, people investing privately have numerous opportunities to invest in solar energy sources in Europe. One of the areas that is not given much attention is water. The following are some considerations that show that water plays a significant role in the future of solar energy in Europe. Possible scientific areas where solar energy is linked to water are still a relatively under-researched domain of science. It can be used to bolster the sustainability and efficiency of solar projects in the area.
- Germany, which had started recording a decrease in renewable electricity capacity earlier than most countries. Besides this, it is geographically located farther from the sunniest countries of Europe, is a leader in solar power capability. It had an installed capacity of 45 GW by the end of the year 2021, and out of this, Spain was the second largest with only 10 GW, and Italy was the third largest with only 9 GW of capability.
- Moreover, the countries L7 still provide vast potential for investments in solar technologies. They are bestowed with the greatest solar radiation in Europe, but they have not exploited it as much as they should.
- Spain is in a good economic standing and overall has a relatively low tension towards the European Union. Thus, it makes this one of the secure places for investing in solar projects. The dependency on nuclear power may slow down its move to Solar. The population pressure may push it to adopt it if it meets its water needs.
Outcomes
Therefore, it is useful to monitor the changes in the generation of renewable energy sources. However, there are areas where the potential of solar energy generation can be quickly scaled up. Nevertheless, meeting necessary infrastructure demand, such as the energy storage system, is a difficult task.
It is also expected that the options in the fundamental accommodation of solar power as an energy source will increase. It revealed that Eastern European countries will promote the integration of capacity. So, they can enhance energy efficiency and make better use of renewable sources of energy. Still, it will also focus on the opportunity to expand cooperation with Western Europe.
Expected Development of Solar Project in Europe
The advancement in the solar energy projects implementing process is now on the right track in European countries. In the last ten years, many great achievements have been made. Europe has been striving to achieve the set objectives in conserving the environment deeming with the goals of water and air quality.
Although this rate might not be sustainable, however, solar energy is now a strategic area for the private sector. This means that there is still government patronage for technologically related projects. However, governments in general will want to avoid costly feed-in tariffs and market intervention. They tend to offer adequate enticement while at the same time seeking to minimize the cost consequences on the private players.
However, this view does not preclude the fact that investments will only take place with the assistance of the government forces. Evident from the geopolitics, the Western European market entails expectations of recognition. It supports that are similar to incentives and progression that have been witnessed in America.
It is expected that very large sums of money will be dedicated to the base structures of the East. In the latest development while the expectations for assistance in starting the competition with the capabilities of Southern Germany are high. Nonetheless, their infrastructure is still shaky, and the governments around the Mediterranean Sea, especially Berlin, have no concrete ground. High private interest in the expansion of renewable energy and the regional aims represent an opportunity to develop solar energy.
Hence, there is an increase in the fight towards attaining net zero. Europe is not left behind when it comes to promoting the use of solar energy.
Resources
https://www.pveurope.eu/markets/eu-market-outlook-solar-power-2022-2026-european-solar-market-grows-almost-50-percent#:~:text=European%20solar%20shows%20no%20signs,reach%20484%20GW%20by%202026
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/energy-and-green-deal_en
https://cordis.europa.eu/project/id/763977
https://www.sciencedirect.com/science/article/abs/pii/S0960148114008763?via%3Dihub
https://www.mdpi.com/2071-1050/15/21/15445#B31-sustainability-15-15445 https://eurec.be/launch-of-large-scale-renewable-energy-skills-partnership/#:~:text=The%20large%2Dscale%20renewable%20energy,Europe%20and%20the%20European%20Commission.
