Intersolar Europe returned to Munich this year after taking a hit from the Covid-19 pandemic. This year saw significantly more attendees and robust order inquiries, as InfoLink team observed. Production capacities of Tier-1 vertically integrated companies are fully booked from this to the first half of next year. Some small-sized manufacturers failed to acquire modules from Tier-1 manufacturers and thus turned to their Tier-2 counterparts. Vigorous activities affect prices on the spot market. Doubled with fluctuating exchange rates, spot prices surged in Europe, coming in above USD 0.28-0.30/W.
While the trade show was abuzz with recent developments of international trading, US-China trade war, and the rise of India-made products, discussions on expanding manufacturing overseas and [made in Europe" came into spotlight, for not only the U.S. and India saw foreign companies adding manufacturing operations, Europe also seeks independence from PV manufacturing.
Many manufacturers consider completing their local supply chains. Local module makers in Europe are also sourcing raw materials suppliers outside of China, such as polysilicon, wafer, and BOM. However, China dominates materials supplies, while manufacturing in Europe incurs high labor and electricity costs. Moreover, building a cell supply chain in Europe would require high equipment capex. Cost reduction remains one of the biggest challenges for Europe.
Europe expects to form a wafer, cell, and module production hub with 20 GW of capacity by 2025. However, only a few manufacturers have begun to work on expansion projects. Actual order volume of manufacturing equipment seems to make no progress. Whether local manufacturing will see headway in the future hinges on supportive policies from the EU.
On the product side, this year`s event saw displays of mainstream PERC modules and quite a few n-type product launches. Europe can be a pioneering market for n-type modules, owing to its enormous demand.
