Exploring the Rapid Growth of Solar Photovoltaics in the European Union

Abstract

Solar photovoltics (PV) capacity, encompassing both expansive utility-scale installations and compact distributed systems, constitutes a significant proportion of the anticipated augmentation in worldwide renewable energy capacity for the current year. In light of escalated electricity costs stemming from the prevailing global energy predicament, governmental authorities across numerous nations, notably in Europe, have proactively pursued substitutes to externally sourced fossil fuels with the aim of enhancing energy resilience. The implementation of policy initiatives across various European nations has necessitated a revision of our projections regarding renewable capacity additions within the European Union (EU) for the years 2023 and 2024, resulting in an upward adjustment by 40% compared to pre-existing estimates. The notable surge in distributed solar PV installations emerges as the primary catalyst behind this more optimistic outlook, contributing to nearly three-quarters of the total forecast revisions for the EU. This phenomenon is propelled by heightened electricity prices, rendering solar PV installations financially more appealing, alongside the augmentation of policy support within pivotal EU markets, particularly evident in Germany, Italy, and the Netherlands.