According to the solar industry, the EU must address squandered green energy and negative costs

Various solar and renewable energy confederations addressed the EU Energy Commissioner through a letter regarding dissipation of green energy.

Although the EU is elated with a phenomenal growth of solar energy, European solar industry fears the high costs of solar energy generation. The associations asserted that 2023 is expected to deliver the highest solar generation again; however, issues like the electricity grid, flexibility, and volatile prices must be addressed, which negatively impacts the project. (During 2022, the EU installed 50 percent more generating units than in 2021, which has an overall production capacity of 40 gigawatts.)

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Nineteen associations, 16 of which represent the solar industry in European countries, have stated that urgent action is needed to address the energy and climate crises, and increasing solar deployment rates is crucial. They have also mentioned the need to accelerate solar growth and curb energy waste. The signatories also include representatives from the EU, Switzerland, and Norway. Moreover, during the low demand and favoring coal power production, solar power generating units are being disconnected is another concern raised by the industry, as it is polluting the environment.

EU countries such as Poland and the Czech Republic have shown some reduction in solar power production. These cutbacks are caused by a decrease in demand while coal power plants continue to operate. The association stated that heavy reliance on coal as an energy source and the lack of flexibility in the power system has resulted in the burning of highly emitting coal while clean and low-cost solar energy is being wasted.

Additionally, the industry has also raised concerns about unstable energy prices and frequently occurring negative prices, which puts investments in new solar projects in danger. The associations warn that prices are becoming increasingly volatile by showing sudden spikes and negative values, which could lead to greater uncertainty and potential loss of revenue for renewable energy sources.

According to Procurement Resource, a group of solar industry requested the EU to address issues like a reduction in solar power production. They have raised concerns regarding the volatile prices that are hindering investments in the renewable energy sector.