Europe continues to make steady progress in the transition to renewable energy sources, behind only China in volume, but an absolute leader in regulation and commitment to a more sustainable future. As the world faces the challenges of climate change, European countries are leading the way in implementing innovative solutions to accelerate the energy transition and reduce emissions to meet the targets set by the IPCC. A key aspect of this transition is the search for coexistence between solutions originating outside the borders of the European Union and technologies developed and manufactured within the EU itself.
Both the Solar Power Europe Association and the ESMC (European Manufacturing Council) have recommended that the European Commission take a number of actions to facilitate the incorporation of local content in key renewable energy technologies, more specifically in the solar PV value chain. These associations advocate the adoption of the Net Zero Industry Act (a proposal for the manufacturing capacity of strategic net-zero emission technologies to meet at least 40% of the EU’s annual deployment needs by 2030) and incorporating strict sustainability and resilience criteria in public auctions.
The solar energy installed annually in Europe has reached volumes that have allowed the consolidation of a European domestic market with multiple applications and new niches. Forecasts also point to a consolidation of solar costs in a reasonable and competitive range, reaching minimum values.
In the current scenario of geopolitical tension, the EU is already taking steps to tighten controls on foreign investment in strategic sectors. And the energy sector, considered strategic, should be able to build an industry with the current competitiveness of the technology as a reference, even with the support of the institutions. This should be a strategy that not only promotes economic growth, but also improves the overall sustainability of the energy sector.
This implies integrating components, materials and knowledge from European suppliers and manufacturers. This boost to local content will be the basis for consolidating European technological leadership, strengthening regional economies, creating jobs and reducing the carbon footprint associated with transporting materials over long distances, which is one of Verdian Power’s strategic axes.
Therefore, turning solar photovoltaic energy into a proximity energy source requires both a more localized value chain and the ability to show local communities the advantages of this technology.
The EU’s primary objective must be to complete the energy transition and thus achieve the decarbonization targets set by the IPCC. And for this, the solution will not be to establish barriers to the import of products from outside EU borders, but to seek and articulate mechanisms through incentives to companies that prioritize the use of local resources and knowledge, thus aligning economic interests with sustainable regional growth.
Europe’s commitment to incorporating local content into the renewable energy value chain, as opposed to externally sourced product, should be a commitment to accelerate the transition and achieve the targets defined by the IPCC. By contributing to local development and manufacturing, the European Union would not only boost economic growth, but also set an example of regional sustainable development.
As the world looks to a clean energy-driven future, Europe’s emphasis on accelerating the transition away from fossil fuels and towards renewable energies as the backbone of its economies will enable a reindustrialization from which all the economies of the countries that make up the European Union can benefit.
Francesc Filiberto es miembro del consejo de Verdian Power.
Article published in El Periódico de la Energía.
