Renewable Energy Institute releases today "Progress in Diversifying the Global Solar PV Supply Chain".
From 2022 solar photovoltaic (PV) has become the global leading technology in terms of annual growth in electricity generation. By 2030-2035, solar PV will be the world’s largest source of electricity generation.
Solar PV’s success is primarily based on its excellent cost competitiveness. Solar PV also effectively contributes to reducing greenhouse gas emissions and strengthening energy security by replacing imported fossil fuels.
This is why solar PV is the trump card of the energy transition. As such, the robustness of solar PV supply chain is of critical importance, and China’s current domination over it is problematic.
This report analyzes progress in diversifying the global solar PV supply chain. It finds that efforts to expand crystalline silicon manufacturing in the United States, Europe, Southeast Asia, and India, as well as improvements in recycling and the emergence of perovskite – pioneered by Japan, make the solar PV supply chain more robust.
<Table of Contents>
Introduction
Key Findings
Section 1: Overview of the Global Solar PV Supply Chain
1) Crystalline silicon modules, currently the undisputed leading technology
2) The four most valuable minerals: silicon, silver, aluminum, and copper
3) Concentration of manufacturing capacity in China and by Chinese manufacturers
Section 2: Key Factors and Issues behind China’s Domination
1) Economies of scale and vertical integration give competitive edge
2) Geographic concentration within China comes with advantages and drawbacks
3) Criticisms against the Chinese solar PV industry
4) Solar PV oversupply means fierce competition, rock-bottom prices, and losses
Section 3: Counteractions in the United States, Europe, and Asia
1) United States: complementarity of subsidies and protectionism
2) European Union: risk awareness, but demand prioritized over domestic supply
3) Japan: crystalline silicon potential underestimated, promising perovskite emphasized
4) Southeast Asia and India: underrated actors of diversification
Section 4: Recycling and Perovskite as Alternative Solutions
1) Improving recycling to become less technically challenging and more affordable
2) Global landscape of perovskite cells nascent manufacturing
Conclusion