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Europe’s inverter manufacturing sector, a cornerstone of the continent’s solar supply chain, is at a crossroads as it grapples with global manufacturing overcapacity and a slowdown in rooftop photovoltaic (PV) markets in key European regions. Once a leader, producing over 80 GW of inverter capacity in 2023—primarily string inverters suited for residential and small-scale commercial applications—the sector’s stability is now under threat.
Industry experts underscore the pivotal role of inverters in Europe’s energy transition. As essential components of solar energy systems, inverters connect solar output to grids, batteries, and other clean energy technologies. Their importance is only expected to grow with the ongoing electrification and digitalisation of energy systems across Europe. Policymakers warn that losing this critical industry could jeopardize both the region’s energy sovereignty and its clean energy goals.
To safeguard the sector, calls for immediate and long-term interventions have intensified. Stakeholders urge the European Union (EU) to establish an Important Project of Common European Interest (IPCEI) focused on smart and secure electrification. This initiative would leverage public funding to maintain the EU’s leadership in critical communication components like solar inverters.
In addition to structural measures, industry representatives are advocating for immediate actions, including:
Developing an EU action plan to bolster inverter manufacturing.
Enforcing stringent standards on cybersecurity and energy security.
Introducing financial support mechanisms to enhance global competitiveness while ensuring a level playing field.
Europe’s inverter industry holds the potential to lead innovations in next-generation grid-forming technologies and secure a significant share of the global market. Industry leaders emphasize that with swift action, the continent can entrench its position as a global frontrunner. However, inaction could result in dire consequences, including the loss of tens of thousands of jobs and setbacks to Europe’s secure electrified energy transition.
Policymakers are now under pressure to act decisively to protect this vital industry and ensure Europe’s continued leadership in renewable energy technologies. |
