EUSEW 2013 - Perspectives for PV installations on commercial and industrial buildings in Europe

EUROPEAN PHOTOVOLTAIC INDUSTRY ASSOCIATION Perspectives for PV installations on commercial and industrial buildings in Europe Giorgia Concas Policy Advisor

26 June 2013

PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

Who is EPIA?

GBE FACTORY PROJECT, 26 JUNE 2013

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

PV in Europe

More than 70 GW installed in 10 years!

GBE FACTORY PROJECT, 26 JUNE 2013

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

PV market segmentation in Europe

Residential: ≤ 3 kW Commercial: ≤ 100 kW Industrial: ≤ 500 kW Ground mounted: ≤2.5 MW

The share of roof-top installations has increased and now it represents nearly 70% of the market Commercial and industrial installations represent nearly half of the market

GBE FACTORY PROJECT, 26 JUNE 2013

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

EPIA’s scenarios for future PV market growth in Europe

Roof-top segments will be predominant in Europe GBE FACTORY PROJECT, 26 JUNE 2013

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

Opportunities for PV on commercial and industrial buildings

Source: Competing in the Energy Sector, EPIA, 2011

Decreasing PV prices

GBE FACTORY PROJECT, 26 JUNE 2013

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

Opportunities for PV on commercial and industrial buildings

Source: Competing in the Energy Sector, EPIA, 2011

Increasing retail electricity prices

GBE FACTORY PROJECT, 26 JUNE 2013

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

Opportunities for PV on commercial and industrial buildings Avg. share of self-consumption in the commercial sector for 2 different Load Profiles 60% 50% 40% 30% 20% 10%

8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night 8.00-18.00 Night

0%

AT

BE-F BE-W

CZ

DE- DE- ELELESESFR- FRITITNorth South North South North South North South North South

NL

PT

UKSouth

Source: PV PARITY project Self-consumption rates are high in commercial and industrial buildings

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

Challenges for PV on commercial and industrial buildings 2012 PV development drivers 1% 10%

2%

18%

Self-consumption Net-metering

4%

FIT ROC/RPS Grants Competitive PV 65%

Source: EPIA internal calculations

Financial incentives (covering PV operation) (net-metering and FIT) will probably be progressively phased out Instruments to decrease PV CAPEX will be necessary: Renewable Portfolio Standards? ESCOs? Instruments to decrease the cost of capital will be needed Need to facilitate access to « tailormade » loans gg

GBE FACTORY PROJECT, 26 JUNE 2013

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

Examples of EU financing tools The European Investment Bank can in principle support PV projects: •

• •

investment cost < 25 M EUR: the EIB provides intermediate loans through banks and other intermediaries… but lending decision and specific conditions remain with the intermediary institutions Investment cost < 25 M EUR and borne by an SME: the « Green Initiative » funding and technical assistance Investment cost > 25 M EUR (e.g. a group of separate PV projects): the EIB provides grants (> 2 billion EUR between 2002 and 2013)

Possibility of ring-fenced budget for low carbon projects, including PV, as of 2014 within structural funds.

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PERSPECTIVES FOR PV INSTALLATIONS ON COMMERCIAL AND INDUSTRIAL BUILDINGS IN EUROPE

Opportunities for PV on commercial and industrial buildings GERMANY

LCOE - Residential at 1,8 EUR/Wp – 4,4% WACC – Comparison with electricity retail prices (grid costs and taxes are compensated) Source: PV PARITY project

UK

0,25

0,2

SPAIN

2011 RES

ITALY

0,3

LCOE RES

FRANCE

0,35

0,15

0,1

0,05

0 900

1000

1100

1200

1300

1400

1500

1600

Increasing PV competitiveness against retail electricity prices

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THANK YOU FOR YOUR ATTENTION g.concas@epia.org European Photovoltaic Industry Association Renewable Energy House Rue dâ&#x20AC;&#x2122;Arlon 63-67, 1040 Brussels - Belgium T +32 (0)2 465 38 84 - F +32 (0)2 400 10 10 info@epia.org - www.epia.org

26 June 2013