China-europe solar container ratio policy

What role will China play in the solar PV supply chain?

However, irrespective of European regional goals, China will maintain a predominant role in the solar PV supply chain due to the advantages of manufacturing capacity and costs, and the need to expand global capacity by over 1.5 times.

How can European policymakers build up domestic production of solar panels?

Solar panels scenario 1: Do everything … Ramp up domestic production In this scenario, European policymakers adopt an ambitious – and expensive – industrial policy to build up a potent domestic industrial base for making solar photovoltaics and markedly reduce dependence on imports from China.

What does Europe mean in a solar PV supply chain?

In the main text, Europe (EUR) indicates the region that includes Germany, Switzerland, and ROE. Each region is modeled as a node with PV demand, production capacity, and production costs. The supply chain itself considers the production of solar PV’s five main components: polysilicon, ingots, wafers, cells, and modules.

How does the EU deal with China's reliance on solar?

Rather than blocking Chinese products and reshoring manufacturing, the EU instead invests existing resources in wind energy and hydropower. It thereby offsets the risks emanating from the dependency on China in solar by developing greater capacity in sectors where European companies are still more competitive.

Can Europe regain a missed opportunity with a solar PV supply chain?

Building up the solar PV supply chain can also be seen as a chance for Europe to regain a missed opportunity: the initial wave of solar PV adoption was led by European demand and, for a time, Germany's manufacturing was a competitive supplier 4.

How does China's low-cost production affect solar supply?

In terms of global supply, China’s low-cost production has generated a surplus in cells and modules, creating opportunities for emerging countries to access affordable solar panels, but at the same making it harder for them to set up their own solar supply chains. Solar panels scenario 1: Do everything … Ramp up domestic production