Fro, reNEWSbiz, October 4:
Research from Rystad Energy reveals that 35GW of solar manufacturing and more than 2000 gigawatt hours of battery cell manufacturing capacity in the EU could be mothballed unless power prices return to normal.
The energy intensive nature of these manufacturing processes is leading some operators to temporarily close or abandon production facilities as the cost of doing business escalates.
Rystad stated that unless prices turn around soon, Europe’s plans to cut dependence on imported fossil fuels by boosting installed renewable generation capacity and electric vehicle (EV) usage could be derailed.
Although Europe’s solar manufacturing capacity is relatively modest on a global scale – making up only 2% of total capacity – any shutdowns or abandonment of projects would have significant long-term negative consequences.
The EU has targeted 20GW of production capacity by 2025, and although 35GW of projects is currently planned, many have not secured funding, increasing the risk that these projects will fall through if high power prices continue.
Battery cell manufacturing – crucial in the EV and battery storage supply chain – is even more energy intensive than solar manufacturing, and Europe is a major global player....
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