European Policies and Photovoltaic Market Prospects under the Wave of Energy Transformation

The recent rise in traditional energy prices due to the Ukrainian-Russian War has made energy transition and security issues more critical. This also indicates that Europe will play a key role in this global transformation.

In order to accelerate the achievement of REPowerEU: by 2030, renewable energy accounted for 45% of Europe's total installed capacity (about 1236 GW), and a total of 600 GW of new photovoltaic installed capacity, the EU proposed two policy drafts in March this year: "Net The Net Zero Industry Act and the Critical Raw Materials Act will be carried out under the framework of the Green Deal Industrial Plan issued earlier by the European Union.

According to the content of the "Net Zero Industry Act", before 2030, the European Union will simplify administrative procedures and cultivate technical talents to make a number of "Strategic Net-Zero Technologies" including photovoltaics (Strategic Net-Zero Technologies) ), more than 40% of its annual installed demand must come from local manufacturing. The "Key Raw Materials Act" stipulates that the supply ratio of key raw materials that are indispensable in the processing process, especially those related to renewable energy, such as lithium and rare earth metals, shall not exceed 65% from a single third country.

Relying on the support of many bills, the "Green New Deal Industry Plan" is regarded as a strong response to the "Reducing Inflation Act" passed by the United States last year. The "Reducing Inflation Act" is expected to invest 369 billion US dollars in the renewable energy industry within ten years, which includes additional subsidies and tax relief for photovoltaics, wind power, energy storage and other fields. Progress in the direction of expanding investment and subsidies.

Relying on the support of many bills, the "Green New Deal Industry Plan" is regarded as a strong response to the "Reducing Inflation Act" passed by the United States last year. The "Reducing Inflation Act" is expected to invest 369 billion US dollars in the renewable energy industry within ten years, which includes additional subsidies and tax relief for photovoltaics, wind power, energy storage and other fields. Progress in the direction of expanding investment and subsidies.

Overall, the policy development of European countries will promote the terminal demand of the photovoltaic market. According to InfoLink, the demand for photovoltaic modules in the European market (including the UK) in 2023 will be roughly between 92-114 GW. Although short-term is affected by problems such as excess inventory and lack of workers leading to grid connection schedule delays, in the long run, with favorable policies and optimization of supply chain technology and costs, it is expected that by 2027, the demand for components in the European market will reach 141- The compound annual growth rate (CAGR) is about 7%-8.9%. It can be seen that the growth potential of the European photovoltaic market is still considerable.