Future Vision for Photovoltaics

Reactions from Philippe Busquin, MEP,

Member of the Industry, Research and Energy
Commission

Brussels, 28th September 2004

Future Vision for Photovoltaics -
Brussels 28 September 2004 1
 PV: Vision 2030
Photovoltaics could produce about 5 % of EU
electricity needs by 2030, equivalent to the present
total electricity consumption of Germany and France
Large-scale dissemination of PV could provide
electricity to more than 100 million households in
Developing Countries and help eradicate poverty
Grid-connected and stand-alone PV systems will
create employment ( several hundred thousands of
jobs) and stimulate exports

Future Vision for Photovoltaics -

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 Policy framework for the Vision
¾ Research policy

¾ Energy policy

¾ Environment policy

¾ Regulatory framework

¾ Recommendations for the future

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 PV Research in European
policy
Photovoltaics needs a specific programme for
long-term Research and technology development

¾ PV European Research Area:,

3 Integrated Projects, 5 specific projects, and 2
coordinating actions funded in 2003-2004
¾ PV-ERA-NET for closer coordination of PV RTD between
European and national programmes Î Creation of a Mirror
Group needed
¾PV Technology Platform : Existing Instruments or
Joint Technology Initiative ?
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 European Energy policy

¾ White Paper 1997: target 3 GW of installed

PV by 2010

¾ Green Paper “Towards a European Strategy

for the security of Energy Supply: goal to double
Renewable Energy production by 2010

¾ Directive on Electricity production from RES:

EU25 from 14 to 21 % Renewable electricity by
2010
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 European Environment policy
™ 1997 “Kyoto” protocol: reduction of GHG emissions
between 1990 and 2010 (in industrialized countries by
5%, in the EU by 8%)
™ UN Framework Convention for Climate Change required
that industrialized countries reduce greenhouse gas
emissions by a factor 4
™ Millennium Development Goals (Johannesburg World
Summit 2002): better access to energy for poverty
eradication and sustainable development
™ Creation of the Johannesburg Renewable Energy
Coalition (JREC) composed of 80 countries

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 European policies:
Regulatory framework
Great disparity of regulations and incentives
is a major barrier for deployment
¾ For example:

¾ Good “feed-in tariffs“ (incentives for PV electricity into the grid

under various conditions ) in Austria, Germany, Luxemburg and
Spain
¾ Low “feed-in tariffs” in Greece, Hungary, Lithuania, the
Netherlands or Belgium
¾ Tax incentive or investment subsidies in few countries:
Poland, UK, Finland
¾ Mixed measures in France, Czech Republik and Greece
¾ No legislation for PV in Sweden, Denmark, Ireland, Estonia,
Malta, Slovakia
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 Recommendations for the Next phase
¾ To launch a European Photovoltaic Technology
Platform

¾ To elaborate a common Research Agenda for

Photovoltaics with all the stakeholders including
EU + national policy makers and end-users

¾ To develop harmonised PV support

¾ Do not forget: UN Millennium goals where PV

electricity can contribute to the poverty eradication
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 Annex1: financial incentives for
PV in EU25
Austria : Feed-in tariff (max 15 MWp, systems installed in 2003-04 )
from 0.47 €/kWh (< 20 kWp) to 0.6 €/kWh (> 20 kWp)
Belgium: Feed-in tariff = 0.15 €/kWh
Cyprus : Feed-in tariff = 0.12–0.26 €/kWh and investment subsidies up
to 55% for private investors and up to 40% for companies
Czech Rep.: Feed-in tariff = 0.2 €/kWh. Reduced VAT and subsidies
(up to 2 kWp for private and 20 kWp for legal entity investors)
Denmark : No PV programme; settlement price for green electricity
Estonia : No PV programme; Renewable Portfolio Standard
Finland : Investment subsidy up to 40%

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Annex1: financial incentives for PV
in EU25
France : Feed-in tariff = 0.15 €/kWh for 20 years (systems < 1 MW) 0.30
€/kWh in Overseas Department and Corsica; 5.5% VAT on investments on
existing buildings, 15% tax credit for individual tax payers (40% in 2005).

Germany : Feed-in tariff years (5% annual decrease from 2005 to2025). For
plants, 6.5% decrease from 2006 (except on buildings or sound barriers).
2nd REE injection law approved by the Bundesrat: minimum= 0.457 €/kWh;
buildings and sound barriers : 0.574 €/kWh (< 30 kWp), 0.546 €/kWh (>
30 kWp) and 0.54 €/kWh (> 100 kWp), additional bonus of 0.05 €/kWh for
façade integration

Greece : Feed-in tariff = 0.078 €/kWh on islands and 0.07 €/kWh on the
mainland. Grants for 40-50% of total cost. Holds only for commercial
applications >5 kW, no grants for domestic applications

Hungary : yearly fixed not PV-specific feed-in tariff currently = 0.062-

0.1 €/kWh; Subsidies for renewable energy projects
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Annex1: financial incentives for PV
in EU25
Ireland : Alternative Energy Requirement tender scheme (no targets for PV)

Italy : investment subsidy, feed-in law passed in February 2004.

Regulations and tariffs not defined yet, expected for 2005.

Latvia: Feed-in tariff = double the average sales price (currently

0.146 €/kWh) for eight years, then reduction to normal sales price. A
national investment programme for RES has been running since 2002.
Lithuania : Feed-in tariff = 0.056€/kWh

Luxembourg : Feed-in tariff for systems < 50 kWp (quota 1% of total

energy consumption) : for municipalities = 0.25 €/kWh; for private
investors= 0.45 €/kWh (after the revision of the law in January 2004); in
addition possible investment subsidies up to 40% (reduced for systems
> 10 kWp)
Malta : No specific PV programme yet, but VAT 5% instead of 15%
Netherlands : Feed-in tariff= 0.068 €/kWh
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Annex1: financial incentives for PV
in EU25
Poland : Tax incentives: no customs duty on PV and reduced VAT (7%)
for complete PV systems, but 22% for modules and components. Some
soft loans and subsidies. New law passed in April 2004: tariffs for all
renewable energies have to be approved by the regulator (until now only
for projects larger than 5 MW)
Slovakia : No specific PV programme. Tax deduction on income
Slovenia : Feed-in tariff=0.37 €/kWh < 36 kWp ; 0.065 €/kWh > 36 kWp
Spain : New feed-in law in March 2004, into effect immediately.
0.396 €/kWh < 100 kWp (previously limited to 5 kWp systems),; > 100
kWp 0.216 €/kWh. Duration of payment 25 years, with payment on 80
percent of rated power output beyond that. The decree has also lifted the
50 MW cap, being now 150 MW
Sweden : No specific PV programme. Electricity certificates for wind
solar, biomass, geothermal and small hydro. Energy tax exemption
United Kingdom : Investment subsidies in the framework of a PV
demonstration programme. Reduced VAT.

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