Sign in Subscribe
Renewable energy

Europe's Solar Energy Dilemma: A Fight for Supply Chain Sovereignty

Strategic Insights

— 2 min read

Europe's renewable energy efforts have relied heavily on solar photovoltaic (PV) technology, but the continent's over-reliance on China for PV production has raised concerns about supply chain security. With the uncertainty of globalized supply chains and the potential for disruptions, Europe is rethinking its approach to PV production and seeking ways to diversify its supply chain. This shift is driven by the desire for sovereignty, particularly in the face of global crises, and aims to maintain affordable costs for consumers while pursuing a sustainable energy transition.

Key Takeaways:

  • Europe has been a pioneer in PV production, but most manufacturing capacities have been offshored to China over the last 15 years, leading to significant cost reductions.
  • China's dominance in PV products puts the sector supply chain at high risk of disruption, which could threaten energy security and impede the proper operation of installed PV.
  • The unavailability of key components could impede the proper operation of installed PV, threatening energy security and making it critical to repower existing infrastructure and decommission thermal power plants.
  • Reindustrializing in Europe, as seen in the United States with the Inflation Reduction Act, comes at a significant cost, a consideration when rebuilding a minimum share of factories.
  • Strategies for diversifying the PV supply chain in Europe include rebuilding a minimum share of factories and developing strategic partnerships to pursue the energy transition while maintaining affordable costs.
  • A detailed bottom-up PV production model has been developed to quantify the various cost items and provide a framework for evaluating different scenarios.
  • The analysis concludes that diversifying the PV supply chain is essential for securing Europe's energy and climate roadmap and sovereignty.

Statistics:

  • Over the last 15 years, most of the manufacturing capacities of solar PV modules and upstream components have been offshored to China.
  • China's dominance in PV products puts about 80% of Europe's PV supply chain at high risk of disruption.
  • The unavailability of key components could impede the proper operation of installed PV, threatening energy security and making it critical to repower existing infrastructure and decommission thermal power plants by 2040.
  • Reindustrializing in Europe, as seen in the United States with the Inflation Reduction Act, comes at a significant cost of $10 billion per year.

Sources:

  • Pierre-Philippe Grand, EDF Lab Paris-Saclay, Palaiseau, France.
  • Marie-Ann Evans, et al. (2025). Diversifying the solar photovoltaic supply chain to secure Europe's energy and climate roadmap and sovereignty. iScience, 28(6), 112751.
  • Cell Press, 50 Hampshire St, Floor 5, Cambridge, MA 02139, USA.
  • NewsRx. Data on Life Sciences Reported by Pierre-Philippe Grand and Colleagues (Diversifying the solar photovoltaic supply chain to secure Europe's energy and climate roadmap and sovereignty). China Weekly News. July 8, 2025; p 147.

Read more