Can you tell me about Oxford PV and what it does?
We are a solar manufacturing company leading the development and commercialization of the next generation of solar cells. We want to make solar cleaner and more affordable at scale and to do this we've developed a technology that is capable of producing more power out of solar panels than current mainstream technologies.
To give you a bit of background, the company is a spin out from the University of Oxford. It was established in 2010 and we have now two sites. We have a research and development site in Oxford, UK and then we have our integrated production line close to Berlin in Brandenburg, in Germany.
What we do is we transfer the technology to our pilot line in Germany, where we are currently upscaling production volume.
Our innovative tandem solar cell technology is capable of generating more power compared to current mainstream technologies, and this is key to accelerating the energy transition, and generating more affordable energy.
I understand there has been a steep decline in European solar deployment in the last few years. Can you tell me the main reasons for that?
I want to clarify, first, that we need to differentiate between deployment and supply, because actually deployment has increased. There has been an increase in solar deployment in the last couple of years and according to Solar Power Europe, last year, there was 56 gigawatts of new solar energy installed. This represents a 40 percent increase compared to the previous year, so the deployment is increasing rapidly, which is a good thing.
But what Europe is struggling to do is to diversify the supply chain or the source of the solar panels that are being deployed.
Globally we need to accelerate the deployment of solar power to achieve net zero targets, but energy security cannot be achieved unless you diversify your supply chains and have local manufacturing of solar panels.
So that partly knocks out my next question in part, the other part of my question being, can we use solar, as well as other renewable energy technologies, to wean ourselves off dependence on Russia for energy, especially with the Ukraine war going on at the moment?
This links very well with the issue of supply, because when Russia invaded Ukraine, we realised the high dependency that Europe had on other countries with regards to energy, so it was a huge effort for Europe to transform supply chains at short notice.
Europe committed to setting systems to accelerate the clean energy transition, but also addressing the energy security programmes we were developing.
The Repower Europe plan is central to that transformation. This is a big umbrella of initiatives that are being implemented, so Europe is working to really set the right framework to achieve net zero and increase energy security.
The Net Zero Industry Act is particularly important and has just been agreed at European level. The proposal is not yet published but includes a commitment to ensure that Europe manufactures a minimum of 40 percent of its clean technology needs. This is a big increase and so requires the introduction of support at a number of different levels to provide finance and strategic investment, along with increasing the number of skilled workers.
Europe wants to create a market for ‘made in Europe’ products. What it is doing to achieve that is the creation of a set of criteria based on sustainability, resilience and innovation that will be used in public procurement but also in auctions to deploy renewable energy.
So, by committing to increase the percentage of local manufacturing for clean technology with a set of criteria that European manufacturers already meet, it will support the creation and development of a solar industry in Europe.
What will Europe now have to do to create a thriving solar industry?
We need an industry that is stable and can grow and remain stable in the long term.
At this point the choice is that either we try to compete with technologies that are already in the market, when other countries already have decades of experience in mass production, and the cost is much lower, or we try to be smart about the choice of the technology and aim to lead with competitive technologies where Europe is already ahead, including innovative technologies like ours.
There are three key steps that Europe needs to take to create a thriving solar industry. One thing is to select the right technology. The second thing is to provide the right framework of regulations and financial support for these technologies to be able to go into the market at scale. Finally, Europe must provide the right infrastructure to increase the local supply along the full value chain; including the local supply of the equipment needed to manufacture the cells and solar panels.
Europe has a lack of supply chain for solar, so you need to think about what technology you select, how you bring it into the market so you can become a leader on that, and then what is the infrastructure and the environment you need around it to build on that.
If Europe can deliver these steps, then we can create a regional market for solar based on long-term vision.
How important is innovation in this and what can be done to support European solar research and accelerating commercialisation?
Innovation is vital, but the focus from a European perspective must again be on strategy. The mainstream technology that we import to Europe is not only something we cannot compete with in terms of cost, but it has also reached its efficiency limit.
Silicon-based panels, which are the dominant solar technology, are at their practical limit in efficiency. With the decrease in cost in the last few years in solar cells and modules, the only way that you can make the energy generated more affordable is by increasing the efficiency.
However, innovation doesn’t only come from developing a more efficient panel. It can come from many areas of the value chain. You can be more integrated or you can use more recyclable supply chains, but what is clear is that innovation will play a key part, because the technology that will help us achieving climate targets has to be more efficient, more sustainable and generate more affordable energy.
This is also the only way of ensuring a stronger return on investment and creates a bigger business opportunity.
Is there a chance here to make sure the regulatory environment and government support, with regard to things like reducing reliance on forced labour and on rare metals and resources, is favourable?
I don't think there is a chance. I think we have to.
There are areas in China that are reported as practicing forced labour and we cannot have that as part of a sustainable future, so we need to make sure that any panel manufacture is free of forced labour. We need to make sure that we are sustainable in all the spaces we can.
We look at sustainability at two levels; one is the product itself and the other is how we operate. The product needs to be environmentally and socially sustainable – the panel manufacture has to be free of forced labour, not using any conflict materials, and we need to be able to increase the ratio of recycled and recyclable materials in the solar panels.
The second level is the operational side, how we manufacture the product. So, what is the full extent of your supply chain? To deploy clean energy, you have to do it in a clean way, that’s why we call it clean energy. It’s kind of redundant in itself but it covers the fullest extent of sustainability.
Ensuring that the energy transition is done sustainably, is a global effort. And we are witnessing this shift in regulations and priorities everywhere. We all have to do our part, but this is not the job of one or two companies, it’s a global challenge that needs to be addressed as such.
Should European solar manufacturing be concentrated in large facilities or be more localised?
That’s a good question. I think more relevant than if it is localised or not is if we think about what is happening now, which is we are importing solar panels from China. That basically involves shipping glass thousands of miles from one place to another.
What is generating the energy is not the glass but the items inside - the cells - which are much lighter than the glass. So, we are currently shipping heavy products across the planet unnecessarily to generate clean energy.
What we need to focus on is building the factories and deploying PV at large scale close to the areas where the panels will be installed, to decrease the cost and make it cleaner, so it’s more about where the energy is going to be used.
Let’s think about it strategically, whether it’s very localised and smaller or really big facilities – we need to decrease the shipment of huge pieces of glass around the world.
That was my last question, so is there anything else that you want to mention or specific things you want to discuss?
Our main message is that we have the basis to build a strong and resilient European solar industry. At the moment there is a struggle with some manufacturers, but in Europe we have the technologies, we have the framework, the means, and we can build infrastructure around it.
Let’s use the right technologies, be strategic about it and select something where we are already leading and take it to mass scale, so that we can bring in the next generation of solar PV.
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