Accelerating the deployment of PV in France and Germany

The year 2023 was once again a record year. Installed capacities recorded their largest growth compared to the previous year, increasing by 18.5% to reach 20 GW in France and by 15.88% to reach 81 GW in Germany. PV thus contributed respectively to 4.9% of the French electricity mix and 11.9% of the German electricity mix. With ambitious deployment targets by 2030, of 54-60 GW in France (National Energy-Climate Plan) and 215 GW on the German side (Erneuerbare-Energien-Gesetz, Renewable Energy Law 2023, in German), PV is the renewable energy production technology that is set to become the most important in the electricity mix of both countries by 2030. To achieve these targets, the French Energy and Climate Strategy (SFEC) and the German Renewable Energy Act (EEG) provide for an increase in the volumes of calls for tenders by distributing deployment efforts between buildings and ground surfaces.

On both sides of the Rhine, the latest regulatory developments aim to accelerate this deployment, which is already well underway. In France, the photovoltaic industrial solidarity pact (Espresso OFATE) of last April provides that according to the reindustrialization scenarios, a need for 100 GW of solar capacity could be reached by 2035. It therefore aims to double the current deployment rate to reach 6 GW per year. It follows the law on the acceleration of renewable energies which plans to simplify administrative procedures, in particular through the designation of acceleration zones, and measures to expand eligible areas by prioritizing the deployment of already artificialized areas. In Germany, the solar legislative package (Solarpaket, in German) of last April pursues a similar agenda of expanding the available surfaces in compliance with certain environmental criteria with the ambition of debureaucratizing the planning and construction procedures for ground-based and built-up installations in order to achieve an installation rate of 22 GW per year from 2026.

Although efforts have been made by the legislator, difficulties continue to hang over deployment. Despite a prolific year in terms of installed capacities, the increase in costs caused by the Covid-19 health crisis and the invasion war in Ukraine has weighed on business models and reduced the profitability of projects. Financing costs have increased following an increase in interest rates, an increase in the cost of components with the exception of modules, and if the cost of raw materials is falling again, it has not yet returned to its pre-crisis level. This increase in costs and inflation can sometimes even call into question the profitability of projects because of the delay between the designation as a winner and the entry into service of the installation. Added to this is regulatory uncertainty and volatility in the electricity market that blur the visibility of investments.

These complications caused by cost increases are amplified by short- and long-term non-financial issues such as the availability of land and competition for surfaces, the lack of skilled workers, long delays until final connection and network congestion phenomena, political uncertainties or apprehensions about the supply chain linked to its concentration in China.

The conference aims to provide an overview of the current context by detailing the objectives and obstacles to this deployment as well as the strategy to overcome them.

The following questions will be at the center of this Franco-German exchange:

• What is the current state of play and the roadmap for the deployment of PV in France and Germany? 
• How do the economic conditions of projects evolve and what are the consequences on profitability?
• What are the challenges that project leaders face during the different stages leading to the launch of a project?
• How do France and Germany intend to overcome these obstacles and establish a climate of trust to achieve their ambitious objectives?

The event will be held in German and French, with simultaneous translation.