China dominates the market for the manufacture of photovoltaic systems by a large margin.
(Photo: IMAGO/Christian Ender)
Berlin Federal Minister of Economics Robert Habeck (Greens) wants to massively promote the development of industrial production capacities for the energy transition. Following a meeting with industry representatives on Tuesday, he pledged to help manufacturers with capitalization.
He specifically mentioned the provision of hybrid capital. Habeck also attaches a key role to guarantees: If, for example, the approval for a wind farm is delayed, the project developer should still be able to order the required wind turbines, explained Habeck. The federal government could cover the associated risk with a guarantee, he said.
Habeck acknowledged that this solution still needs to be examined to determine whether it constitutes illegal financial assistance within the meaning of EU law. However, at their summit in early February, the EU heads of state and government agreed in principle to ease the state aid rules for the promotion of green technologies – also as a reaction to the Inflation Reduction Act (IRA) in the USA. The chances for Habeck’s idea are therefore not bad.
The IRA is a $370 billion American subsidy program to promote green technologies.
At the same time, the minister announced an industrial electricity price that could reduce the cost of manufacturing photovoltaic modules, for example. In Habeck’s ministry, intensive work is currently being done on concepts for the introduction of an industrial electricity price.
Habeck’s plans met with a positive response in the energy sector
One of the models is geared towards reserving certain areas for the expansion of offshore wind power for industrial electricity projects. The high level of electricity prices is a major obstacle, especially at the start of the value chain for the manufacture of solar modules.
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In addition, Habeck said his company was promoting the establishment of an Ipcei project for transformation technologies in Brussels. Ipcei stands for “Important Projects of Common European Interest”. Particularly generous funding conditions apply to Ipcei projects, which already exist in the areas of hydrogen, battery cells and microelectronics. The prerequisite is that the projects are particularly innovative and cross-border.
Habeck’s proposals are essentially based on a paper that the federal German Energy Agency (Dena) had prepared for the BMWK. The Handelsblatt reported exclusively about it.
Habeck’s initiative has met with a positive response in the industry. Jörg Ebel, President of the German Solar Industry Association (BSW), said that there is a lot of catching up to do in Germany and Europe when it comes to photovoltaic production capacities. For reasons of resilience, it is urgently necessary to rebuild value chains and regain lost territory.
Germany and Europe should not rely solely on imports of photovoltaic systems. “We need a strong solar industry along the entire value chain in Europe,” he said. Companies from China have dominated the photovoltaic market for years – and the trend is rising.
In addition to Habeck and Ebel, numerous industry representatives attended the meeting, for example from companies in the solar industry such as SMA Solar, Meyer Burger or Solarwatt, but also from wind turbine manufacturers such as Nordex, Siemens Gamesa or Enercon. Transmission system operators such as 50Hertz and TenneT were also at the table. The atmosphere was very positive, reports the manager of a leading solar company.
“The government has finally understood that we also have to rebuild the solar and wind industry in this country”, now it’s about who builds the factories. One participant said that Dena’s proposals were all “very reasonable”. “A counter-model to the Inflation Reduction Act is needed,” demanded the head of a wind company. Because if factories are being built, “then in the USA”.
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