Due to the cost of rising solar and battery manufacturers, the entire European record electricity prices are undergoing the efforts of the European continent to build a reliable low -carbon supply chain and achieve decarbon target.
Rystad Energy's research shows that unless the electricity price returns to normal levels, 35 GW solar optical light production capacity and more than 2000 GWH battery capacity may be sealed. With the rise of operating costs, the energy dense nature of these manufacturing processes has led some operators to temporarily close or abandon the production plant.
Unless the price rotates quickly, Europe may decline by improving the capacity of renewable energy power generation capacity and electric vehicle usage to reduce the plan to rely on imported fossil fuel.
In recent weeks, due to the unexpected power outage of nuclear power plants and hydropower stations, soaring in cooling during the summer heat wave, and the decrease in Russian natural gas supply, European electricity prices have risen to unprecedented levels. Germany is the leader of European solar energy and battery capacity. The average daily spot price has exceeded 600 euros per MWh. France's daily average spot price has exceeded 700 euros per MWh.
During its peak hours, European electricity prices have soared to 1500 euros per MWh time. For consumers, including industrial fields, this level cannot continue. Electricity prices reached a record high in August, and since then, it has fallen sharply. Nevertheless, electricity prices are still hovering at 300-400 euros, which is many times higher than the standards before the energy crisis.
Although European solar capacity is relatively weak globally, it accounts for only 2%of the total production capacity, no matter which project's suspension or abandonment, it will have a significant long -term negative impact.
The EU's goal is to reach 20GW by 2025. Although the 35GW project is currently planned, many projects have not obtained funds. If electricity prices continue to rise, the risk of failure of these projects will increase.
In Norway, the cost of electricity has risen six times, which leads to energy -intensive solar cell component manufacturers considering discontinuation of production during the remaining time in 2022. As European natural gas shortage is expected to last for several years, high electricity prices will continue to exist. Therefore, attracting investment and financing for solar manufacturers may be quite challenging.
Battery manufacturing is very important among electric vehicles and battery energy storage chains, and it is even more energy -consuming than solar manufacturing. Europe is the main participant in the world.
The EU currently has about 550GWH production capacity, accounting for 27%of global capacity transportation capacity. The announced projects that have been announced will greatly increase this total, increase production capacity to 2.7MWh, and make the EU a global leader. However, these are currently facing risks, and automobile manufacturing and battery energy storage departments may be difficult to purchase European batteries.
Due to rising energy costs and demand for additional financing, BritishVolt's iconic GW -class battery plant in BLYTH has been postponed to mid -2025. This factory will increase 30GWH production capacity to mainland Europe.
