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
Page 2
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
Page 3
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
Page 4
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
Page 5
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
Page 6
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
Page 7
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
GBE FACTORY PROJECT, 26 JUNE 2013
Page 8
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
Page 9
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.
GBE FACTORY PROJECT, 26 JUNE 2013
Page 10
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
GBE FACTORY PROJECT, 26 JUNE 2013
Page 11
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