{"id":332,"date":"2021-08-16T11:14:31","date_gmt":"2021-08-16T11:14:31","guid":{"rendered":"https:\/\/blog.solartraders.com\/?p=332"},"modified":"2024-11-04T11:54:00","modified_gmt":"2024-11-04T11:54:00","slug":"impact-of-the-climate-crisis-on-the-development-of-module-prices-in-the-eu","status":"publish","type":"post","link":"https:\/\/blog.solartraders.com\/en\/2021\/08\/16\/impact-of-the-climate-crisis-on-the-development-of-module-prices-in-the-eu\/","title":{"rendered":"Impact of the climate crisis on the development of module prices in the EU"},"content":{"rendered":"<p class=\"wp-block-paragraph\">In&nbsp;today&#8217;s&nbsp;article&nbsp;we&nbsp;would&nbsp;like&nbsp;to&nbsp;take&nbsp;a&nbsp;closer&nbsp;look&nbsp;at&nbsp;the&nbsp;climate&nbsp;targets&nbsp;in&nbsp;relation&nbsp;to&nbsp;the&nbsp;PV&nbsp;market. Here,&nbsp;especially&nbsp;the&nbsp;price&nbsp;development&nbsp;plays&nbsp;a&nbsp;major&nbsp;role&nbsp;and&nbsp;the&nbsp;funds&nbsp;provided by&nbsp;the governments. We&nbsp;want&nbsp;to&nbsp;answer&nbsp;the&nbsp;following&nbsp;questions&nbsp;in&nbsp;this&nbsp;article:&nbsp;&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list is-style-cnvs-list-styled\">\n<li>Which\u00a0targets\u00a0are\u00a0to\u00a0be\u00a0implemented?\u00a0\u00a0<\/li>\n\n\n\n<li>What\u00a0are\u00a0the\u00a0forecasts\u00a0for\u00a0these\u00a0goals?\u00a0\u00a0<\/li>\n<\/ol>\n\n\n\n<h2 id=\"more-money-for-climate-protection-investments-should-drive-climate-protection-forward\" class=\"wp-block-heading\"><strong>More&nbsp;money&nbsp;for&nbsp;climate&nbsp;protection&nbsp;&#8211;&nbsp;investments&nbsp;should&nbsp;drive&nbsp;climate&nbsp;protection&nbsp;forward&nbsp;<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Both&nbsp;the&nbsp;U.S.&nbsp;authority&nbsp;and&nbsp;the&nbsp;German&nbsp;government&nbsp;parties&nbsp;promise&nbsp;to&nbsp;invest&nbsp;more&nbsp;money&nbsp;in&nbsp;climate&nbsp;protection. In&nbsp;this&nbsp;context,&nbsp;the&nbsp;German&nbsp;government&nbsp;added&nbsp;a&nbsp;few&nbsp;more&nbsp;points&nbsp;to&nbsp;the&nbsp;existing climate protection plan in June 2021.&nbsp;One&nbsp;key&nbsp;objective&nbsp;is&nbsp;to&nbsp;achieve&nbsp;climate neutrality&nbsp;by 2045 instead&nbsp;of&nbsp;2050&nbsp;as&nbsp;originally&nbsp;planned. The bar&nbsp;has&nbsp;also&nbsp;been&nbsp;raised&nbsp;for&nbsp;the&nbsp;2030 climate&nbsp;target, as&nbsp;greenhouse&nbsp;gases&nbsp;must&nbsp;be&nbsp;reduced&nbsp;by&nbsp;65%&nbsp;instead&nbsp;of&nbsp;the&nbsp;55%&nbsp;originally&nbsp;proposed.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However,&nbsp;climate&nbsp;experts&nbsp;warn&nbsp;that&nbsp;these&nbsp;targets&nbsp;will not&nbsp;be&nbsp;enough&nbsp;to&nbsp;limit&nbsp;global&nbsp;warming&nbsp;to 1.5 degrees. Today,&nbsp;we&nbsp;are&nbsp;at a total&nbsp;installed&nbsp;capacity&nbsp;of&nbsp;55 GW in 2021.&nbsp;However, according&nbsp;to&nbsp;the 07\/2021 article&nbsp;from&nbsp;PV Magazine, at least 200 GW&nbsp;must&nbsp;be&nbsp;installed&nbsp;by&nbsp;2030&nbsp;to&nbsp;meet&nbsp;the&nbsp;goals of&nbsp;the&nbsp;Paris Climate Agreement. This&nbsp;means&nbsp;an annual PV&nbsp;increase&nbsp;of&nbsp;at least 15 GW in Germany alone&nbsp;&#8211;&nbsp;far&nbsp;from&nbsp;the&nbsp;2 GW&nbsp;to&nbsp;3 GW&nbsp;that&nbsp;have&nbsp;been&nbsp;added&nbsp;annually&nbsp;in&nbsp;recent&nbsp;years.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 id=\"how-can-these-goals-be-achieved-despite-rising-prices-and-legal-hurdles\" class=\"wp-block-heading\"><strong>How&nbsp;can&nbsp;these&nbsp;goals&nbsp;be&nbsp;achieved,&nbsp;despite&nbsp;rising&nbsp;prices&nbsp;and legal&nbsp;hurdles?&nbsp;<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.solartraders.com\">Solartraders<\/a>,\u00a0Europe&#8217;s\u00a0largest\u00a0PV\u00a0marketplace\u00a0registered a\u00a0significant\u00a0price\u00a0increase\u00a0for\u00a0solar modules\u00a0of\u00a0around\u00a0\u20ac0.025 per\u00a0watt\u00a0peak\u00a0in June.\u00a0For\u00a0bifacial\u00a0modules,\u00a0the\u00a0increase was as high\u00a0as\u00a00.035 per\u00a0watt\u00a0peak. Here\u00a0we\u00a0can\u00a0observe\u00a0a\u00a0price\u00a0increase\u00a0on different\u00a0levels. As\u00a0we already know,\u00a0several\u00a0raw\u00a0material and\u00a0transport\u00a0prices\u00a0as\u00a0well\u00a0as\u00a0the\u00a0prices\u00a0for\u00a0solar\u00a0modules, substructures\u00a0and\u00a0installation\u00a0material\u00a0are\u00a0constantly\u00a0increasing.\u00a0Since\u00a0the\u00a0beginning\u00a0of\u00a02021,\u00a0the\u00a0cost\u00a0of\u00a0polysilicon\u00a0has\u00a0already\u00a0tripled.\u00a0\u00a0Within\u00a0the\u00a0following\u00a0lists,\u00a0we\u00a0present\u00a0you\u00a0further\u00a0areas\u00a0within\u00a0these\u00a0the\u00a0prices\u00a0at\u00a0the\u00a0moment\u00a0immensely\u00a0rise:\u00a0\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-cnvs-list-styled\">\n<li>Copper and\u00a0steel\u00a0(e.g. solar\u00a0cables)\u00a0\u00a0<\/li>\n\n\n\n<li>Mounting\u00a0systems\u00a0\u00a0<\/li>\n\n\n\n<li>Delivery\u00a0costs\u00a0(international freight\u00a0prices\u00a0have\u00a0increased\u00a0sevenfold\u00a0in\u00a0the\u00a0last\u00a0year)\u00a0\u00a0<\/li>\n\n\n\n<li>Silicon\u00a0\u00a0<\/li>\n\n\n\n<li>Mono PERC\u00a0cells\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Currently, solar&nbsp;modules&nbsp;are&nbsp;cheaper&nbsp;on&nbsp;the&nbsp;international&nbsp;spot&nbsp;market&nbsp;than&nbsp;directly from manufacturers.&nbsp;Some&nbsp;of&nbsp;the&nbsp;product&nbsp;prices&nbsp;were&nbsp;negotiated&nbsp;well&nbsp;before&nbsp;the&nbsp;price&nbsp;increases&nbsp;of&nbsp;recent&nbsp;months, so&nbsp;small&nbsp;to&nbsp;medium-sized&nbsp;plants&nbsp;can&nbsp;still&nbsp;be&nbsp;built,&nbsp;as&nbsp;expected. However,&nbsp;some&nbsp;large projects&nbsp;will&nbsp;likely&nbsp;have&nbsp;to&nbsp;be&nbsp;suspended&nbsp;until&nbsp;the&nbsp;situation&nbsp;eases.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According&nbsp;to&nbsp;the&nbsp;07\/2021&nbsp;article,&nbsp;the&nbsp;PV&nbsp;market&nbsp;is&nbsp;in&nbsp;particular&nbsp;need&nbsp;of&nbsp;good&nbsp;ideas&nbsp;to&nbsp;boost&nbsp;the&nbsp;construction&nbsp;of&nbsp;medium&nbsp;to&nbsp;large-scale&nbsp;solar plants in&nbsp;the&nbsp;near&nbsp;future. For&nbsp;this&nbsp;purpose,&nbsp;the measure to ensure&nbsp;a rapid&nbsp;removal&nbsp;of&nbsp;market&nbsp;barriers&nbsp;by&nbsp;the&nbsp;legislator&nbsp;could&nbsp;be&nbsp;taken.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 id=\"conclusion\" class=\"wp-block-heading\"><strong>Conclusion&nbsp;<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If&nbsp;the&nbsp;climate&nbsp;goals&nbsp;are&nbsp;to&nbsp;be&nbsp;achieved&nbsp;with&nbsp;the&nbsp;help&nbsp;of&nbsp;renewable&nbsp;energies&nbsp;and&nbsp;the&nbsp;PV&nbsp;industry&nbsp;in particular, a&nbsp;change&nbsp;in&nbsp;thinking&nbsp;must&nbsp;take&nbsp;place.&nbsp;It&nbsp;is&nbsp;important&nbsp;to remain&nbsp;realistic&nbsp;in&nbsp;order&nbsp;to develop strategies&nbsp;that&nbsp;meet&nbsp;climate&nbsp;goals&nbsp;in&nbsp;the&nbsp;long&nbsp;term.&nbsp;However, potential external&nbsp;impacts, such as the&nbsp;existing&nbsp;Corona&nbsp;pandemic,&nbsp;must&nbsp;be&nbsp;factored&nbsp;in&nbsp;over&nbsp;the&nbsp;long&nbsp;term. We&nbsp;can&nbsp;expect&nbsp;to continue to&nbsp;face&nbsp;scenarios&nbsp;that&nbsp;will&nbsp;impact&nbsp;electricity&nbsp;generation&nbsp;costs&nbsp;in&nbsp;the&nbsp;future. Commodity prices, transport&nbsp;costs, geo-political&nbsp;changes&nbsp;and FX&nbsp;rates&nbsp;can&nbsp;behave&nbsp;very&nbsp;volatile in&nbsp;crisis&nbsp;and also&nbsp;growth phases&nbsp;and&nbsp;thus&nbsp;influence&nbsp;prices&nbsp;significantly.&nbsp;However, it&nbsp;has&nbsp;been&nbsp;shown&nbsp;that&nbsp;we humans&nbsp;are creative&nbsp;in&nbsp;dealing&nbsp;with&nbsp;crises&nbsp;and&nbsp;challenges&nbsp;and&nbsp;are&nbsp;able to&nbsp;rise&nbsp;to&nbsp;the&nbsp;occasion. We&nbsp;are&nbsp;excited to&nbsp;see&nbsp;how&nbsp;the&nbsp;PV&nbsp;industry&nbsp;will&nbsp;evolve&nbsp;in&nbsp;the&nbsp;coming&nbsp;decades&nbsp;in light&nbsp;of&nbsp;the climate&nbsp;crisis. The&nbsp;underlying&nbsp;factors&nbsp;have&nbsp;never&nbsp;been&nbsp;more&nbsp;positive.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 id=\"references\" class=\"wp-block-heading\"><strong>References<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>PV-Magazin<\/strong>; EU&nbsp;spot&nbsp;market&nbsp;module&nbsp;prices: Climate&nbsp;targets, PV&nbsp;price&nbsp;trends&nbsp;for&nbsp;2030 \u2013 a viable&nbsp;mix?;&nbsp;09.07.2021;&nbsp;<a href=\"https:\/\/www.pv-magazine.com\/2021\/07\/09\/eu-spot-market-module-prices-climate-targets-pv-price-trends-for-2030-a-viable-mix\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.pv-magazine.com\/2021\/07\/09\/eu-spot-market-module-prices-climate-targets-pv-price-trends-for-2030-a-viable-mix\/<\/a>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Martin Schachinger \u2013 PV-Magazin<\/strong>;&nbsp;Nuclear&nbsp;\u2013&nbsp;no&nbsp;thanks!; 09.07.2021; S. 10 f.&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"In&nbsp;today&#8217;s&nbsp;article&nbsp;we&nbsp;would&nbsp;like&nbsp;to&nbsp;take&nbsp;a&nbsp;closer&nbsp;look&nbsp;at&nbsp;the&nbsp;climate&nbsp;targets&nbsp;in&nbsp;relation&nbsp;to&nbsp;the&nbsp;PV&nbsp;market. Here,&nbsp;especially&nbsp;the&nbsp;price&nbsp;development&nbsp;plays&nbsp;a&nbsp;major&nbsp;role&nbsp;and&nbsp;the&nbsp;funds&nbsp;provided by&nbsp;the governments. We&nbsp;want&nbsp;to&nbsp;answer&nbsp;the&nbsp;following&nbsp;questions&nbsp;in&nbsp;this&nbsp;article:&nbsp;&nbsp; More&nbsp;money&nbsp;for&nbsp;climate&nbsp;protection&nbsp;&#8211;&nbsp;investments&nbsp;should&nbsp;drive&nbsp;climate&nbsp;protection&nbsp;forward&nbsp;&nbsp; Both&nbsp;the&nbsp;U.S.&nbsp;authority&nbsp;and&nbsp;the&nbsp;German&nbsp;government&nbsp;parties&nbsp;promise&nbsp;to&nbsp;invest&nbsp;more&nbsp;money&nbsp;in&nbsp;climate&nbsp;protection. In&nbsp;this&nbsp;context,&nbsp;the&nbsp;German&nbsp;government&nbsp;added&nbsp;a&nbsp;few&nbsp;more&nbsp;points&nbsp;to&nbsp;the&nbsp;existing climate protection plan in June 2021.&nbsp;One&nbsp;key&nbsp;objective&nbsp;is&nbsp;to&nbsp;achieve&nbsp;climate neutrality&nbsp;by 2045 instead&nbsp;of&nbsp;2050&nbsp;as&nbsp;originally&nbsp;planned. The&hellip;","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[47],"tags":[310,313,316,319],"class_list":["post-332","post","type-post","status-publish","format-standard","category-solar-market-news-en","tag-climate-en","tag-climate-crises-en","tag-solar-development-en","tag-solarmarket-en","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/posts\/332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/comments?post=332"}],"version-history":[{"count":0,"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/posts\/332\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/media?parent=332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/categories?post=332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.solartraders.com\/en\/wp-json\/wp\/v2\/tags?post=332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}