Solar Electrification: Solutions for a Decarbonised Energy System

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Solar Electrification: solutions for a decarbonised energy system SolarPower Europe would like to thank their members and companies who contributed to this report with their knowledge and experience, including:

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BY SIMONE ANTONELLI, HEAD OF REGULATORY AFFAIRS CENTRAL/EASTERN EUROPE AND NORTH AFRICA AT ENEL GREEN POWER

As a new political cycle looms on the horizon, the European Union finds itself at a crucial turning point. The European Commission’s long-term decarbonisation strategy, “A Clean Planet for All”, highlighted that as a pre- condition to meeting the climate-neutrality target by 2050, renewable-based electrification must significantly increase, sparking significant investments needs. As the cleanest, and most cost-efficient energy source worldwide, solar power is best placed to lead this transition, and replace fossil fuels in Europe’s energy mix and across all sectors of the economy. With this report, SolarPower Europe’s ambition is to show how solar electricity will become the bedrock upon which the EU can achieve its ambitious climate goals. The European Clean Energy Package is an essential step forward; it must be fully implemented and effectively enforced, with the inclusion of detailed plans for deep and wide solar electrification within finalised National Energy and Climate Plans. But this is not the end of the road. This report reveals how solar electricity can ensure that the electrification of the EU is fully aligned with the European Green Deal, powering the sustainable and competitive transition of key sectors of the economy, such as electric mobility, industry and agriculture. In this regard, I am particularly proud of the partnership EnelX has established in Santiago de Chile, which indicates the way forward on how to deliver fully sustainable public transport. As can be seen in the case study on the Ketton Cement Works, solar power can help those sectors that are difficult to decarbonise, while simultaneously providing benefits to the grid. Finally, the smart use of solar electricity has a key role to play in the decarbonisation of the European building stock. In just a couple of years, solar has evolved dramatically to become the most affordable clean energy technology. Solar-based electrification accelerates the energy transition, champions innovation and sustainable growth, all while creating local and qualified green jobs for European citizens. As such, solar offers a unique contribution to the electrification of the EU’s power sector and will remain a crucial European ally in delivering a carbon neutral economy before 2050. We hope you enjoy reading our Solar Electrification report.

SIMONE ANTONELLI Head of Regulatory Affairs Central/Eastern Europe and North Africa at Enel Green Power

ELECTRIFICATION

SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM/ 3 EXECUTIVE SUMMARY

The IPCC Special Report on the In November 2018, the European Commission issued its long-term strategy impacts of global warming1 for energy and climate policies, with the aim of defining Europe’s industrial, published in 2018 has energy and societal paths towards a net-zero economy by 2050. The demonstrated a clear urgency to Commission’s strategy acknowledges renewable energies as a key pillar to act and the need to achieve net- achieve this transformation. zero emissions at global level by More than ever, solar is ready to play a leading role in Europe’s energy 2050 to limit temperature rise transition. Combined with ambitious direct and indirect electrification below 1.5°C. policies, solar emerges as a key technology to mitigate the impacts of global warming, maximising the societal benefits for Europe and bridging the decarbonisation of key sectors of the economy. Solar-based electrification has a massive appeal indeed, because of its unique capability to power all aspects of life, from homes to public buildings, farming and carports, etc. Solar is also the energy of “true” consumer empowerment, already adopted by millions of European citizens and communities. In delivering its 2050 long-term decarbonisation strategy, the EU must convert energy and climate commitments into a social, economic and industrial success for Europe. This report, developed in collaboration with leading solar and energy companies, aims at exploring the massive contribution of solar to Europe’s net-zero economy, across key sectors of the economy (i.e. power, industry, transport, buildings, agriculture) and through the ambitious deployment of efficient electrification policies. With a “business oriented” mindset, the report will also look at key case studies for the successful implementation of a solar-powered electrification policy, outlining strong pathways for Europe’s future climate and energy policies across all sectors of the economy.

1 https://report.ipcc.ch/sr15/pdf/sr15_spm _final.pdf

4 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM TABLE OF CONTENTS

FOREWORD 3 EXECUTIVE SUMMARY 4 1 THE BENEFITS OF A SOLAR-POWERED ELECTRIFICATION STRATEGY 6 1.1. SOLAR: HUGE UNTAPPED POTENTIAL IN EUROPE 6 1.2. SOLAR PROVIDES AFFORDABLE ELECTRICITY FOR EU CONSUMERS 7 1.3. SOLAR-BASED ELECTRIFICATION AT THE CORE OF A SMART AND SECURE ENERGY SYSTEM 7 1.4. SOLAR ELECTRICITY DELIVERS A “CONSUMER-POWERED” ENERGY UNION 7 1.5. SOLAR SUPPORTS A JUST TRANSITION IN FORMER COAL REGIONS 8 1.6. SOLAR-BASED ELECTRIFICATION DELIVERS LOCAL AND QUALIFIED JOBS FOR EUROPE 8 1.7. SOLAR PV ENABLES THE EU ECONOMY TO THRIVE IN A RESOURCE-CONSTRAINED WORLD AND CONTRIBUTES TO A CIRCULAR ECONOMY 9 1.8. SOLAR + HYDROGEN – THE PERFECT COMBO FOR A FULLY DECARBONISED ECONOMY 9 2 SOLAR ELECTRICITY DELIVERS HIGHLY INNOVATIVE BUSINESS MODELS TO ACCELERATE THE DECARBONISATION OF KEY SECTORS OF THE ECONOMY 10 2.1. SOLAR: THE ENTRY KEY TO SMARTER AND GREENER EUROPEAN BUILDING STOCK 10 CASE STUDIES 11 2.2. FROM ELECTROMOBILITY TO SOLAR MOBILITY 13 DIRECT ELECTRIFICATION: SOLAR-POWERED CHARGING INFRASTRUCTURE AND VEHICLES 13 FURTHER DOWN THE ROAD: SOLAR-BASED SYNTHETIC FUELS 13 CASE STUDIES 14 2.3. SOLAR SUPPORTS A GREENER AND COMPETITIVE EUROPEAN INDUSTRY 16 INDIRECT ELECTRIFICATION: SOLAR-POWERED MOLECULES FOR THE EU INDUSTRY 16 CASE STUDIES 17 2.4. INNOVATIVE SOLUTIONS FOR THE OPTIMISATION OF LAND USE 19 AGRI-PHOTOVOLTAICS: A NEW ECOSYSTEM OPTIMISING AGRICULTURAL PRODUCTION 19 FLOATING SOLAR: CONQUERING NEW HORIZONS 19 CASE STUDIES 20 REFERENCES 22

Chair of the SolarPower Europe Solar Electrification Task Force: Simone Diodato Antonelli, Enel. Coordinator of the SolarPower Europe Solar Electrification Task Force: Mariano J. Guillén, SolarPower Europe. Contributions and co-authors: Simone Diodato Antonelli, Enel; Aurélie Beauvais, SolarPower Europe; Naomi Chevillard, SolarPower Europe; Federico D’Alberti, Enel; Stefan Degener, First Solar; Gabriel Delmer, Akuo Energy; Karen Drozdiak, First Solar; Faustine Gaymard, Akuo Energy; Mariano J. Guillén, SolarPower Europe; Fabian Hafner, Tesla; Miguel Herrero, SolarPower Europe; Martin Luetgens, Abo-Wind; Chiara Marricchi, Enel; Benjamin Pahl, Weidmueller; Raffaele Rossi, SolarPower Europe; Juan Carlos Rucián, Iberdrola; Luis Sanchez, Enel; Matthias Schoft, Sunman; Emilien Simonot, Innoenergy; Alexandra Sombsthay, Akuo Energy; Christelle Verstraeten, Chargepoint; Andreas Wade, First Solar. The report can be downloaded at: http://www.solarpowereurope.org/category/reports/. Please get in touch with SolarPower Europe if you have any comments or feedback on the report and its content in order to enrich our ongoing work in this field. Design: Onehemisphere, Sweden. [email protected] Disclaimer: This report has been prepared by SolarPower Europe. It is being furnished to the recipients for general information purposes only. Nothing in it should be interpreted as an offer or recommendation of any products, services or financial products. This report does not constitute investment, legal, tax or any other advice. Recipients should consult with their own financial, legal, tax or other advisors as needed. This report is based on sources believed to be accurate. However, SolarPower Europe and do not warrant the accuracy or completeness of any information contained in this report. SolarPower Europe assumes no obligation to update any information contained herein. SolarPower Europe and will not be held liable for any direct or indirect damage incurred by the use of the information provided. Design: Onehemisphere, Sweden. ISBN: 9789463965965. Published: November 2019.

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The European Commission’s Long 1.1 Solar: Huge untapped potential in Europe Term Decarbonisation strategy “A Electrification combined with renewables is the most efficient, sustainable Clean Planet for All” highlighted and competitive way to decarbonise all sectors of the economy. that to achieve carbon neutrality by 2050, the share of renewable The renowned Lappeenranta University of Technology, Finland (LUT) and electricity in Europe’s energy mix the Energy Watch Group (EWG), showed in a recent study that by 2050 should increase to at least 70%, electricity will constitute more than 85% of the primary energy demand in replacing fossil fuels across all a global energy system based on 100% renewable energy. In such a sectors. As the cleanest, most scenario, solar energy could power more than 69% of Europe’s electricity affordable and fastest growing demand, providing nearly 2 TW of power generation in Europe, of which energy technology worldwide, solar nearly 0.7 TW will be utility-scale and nearly 1.3 TW rooftop solar PV . has a key role to play in delivering Moreover, the development of electrical storage systems and demand Europe’s climate ambitions. response services will help strengthen Europe’s energy resilience, allowing for a deeper penetration of renewables, and thus increasing the efficiency of Europe’s energy transformation. The strong uptake of demand side response, smart grids and digital technologies will support system flexibility and the optimal matching of supply and demand patterns, reducing Europe’s fossil fuel dependence and increasing consumers’ empowerment. Finally, several countries in East-Central and Southern Europe with low electrification rates constitute an untapped “solar reservoir” with high- potential due to higher capital cost triggered by unstable political frameworks.

2 Energy Transition in Europe Across Power, Heat, Transport and Desalination Sectors.

6 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM 1.3. Solar-based electrification at the core of Comparing recent findings from Bloomberg New a smart and secure energy system Energy Finance, LUT and the EWG, confirm a The European electricity system has demonstrated a symbiotic ratio between renewable-based high level of agility to support the European energy electrification and the uptake of solar energy. transition by integrating increasing shares of variable and distributed renewables into the system. FIGURE 1 LCOE OF SOLAR ELECTRICITY GENERATION Smarter electricity grid systems and digitalised power IN COMPARISON WITH OTHER POWER SOURCES networks will outline the next step: the uptake of solar in Europe on a massive scale. These technologies are 2,500 100 already revolutionising the energy sector, enabling network operators to benefit from the support of utility- 5 2,000 1,956 80 scale solar plants. The future energy system will also favour the growth of distributed, digitalised, and locally owned solar solutions, that will help reduce grid 1,500 1,411 60 congestion at local level and support consumer

% empowerment through innovative business models. GW 1,000 40 The World Economic Forum estimates that $1.3 trillion could be generated by digitalising electricity generation worldwide between 2016 and 20256 and lists four digital 500 20 areas that will drive the digital transformation of the 114 electricity sector: asset life cycle management, grid 0 0 optimisation and aggregation, integrated customer 2017 2050 services and other future developments. Year Electrical storage and demand response services will

Bloomberg NEW forecast also play a key role in supporting a smarter and cost- Historical data efficient energy transition. The decreasing costs and LUT-EWG model increasing efficiency of batteries and pump-storage RE share (%) already enable the cost-efficient dispatch of solar Source: SolarPower Europe. © electricity at residential and industrial level, increasing the “renewable-hosting” capacity of Europe’s electricity grid and providing valuable flexibility services. 1.2. Solar provides affordable electricity for EU consumers 1.4. Solar electricity delivers a “consumer- Solar has become the electricity source with the lowest powered” Energy Union generation cost in many regions of the world, and outside Not only residential consumers but also Commercial of Europe companies and governments are taking good and Industrial (C&I) businesses, including SMEs, can note of it. For example, in September 2018, California reduce their energy bill and protect themselves against passed a bill targeting 60% renewables by 2030 and 100% electricity price volatility by sourcing their electricity carbon neutrality by 2045, with solar as the key pillar to from solar energy sources, for example through solar reach this goal.3 In 2017, a 60% share of all renewable self-consumption or PPAs. power capacity in the US state came from solar. In the EU, countries such as France, Italy and Spain are aware of this The recast Renewable Energy Directive (REDII) opens a new and have developed ambitious plans to make their solar era for renewable self-consumers by enabling all Europeans capacities grow exponentially until 2030.4 to go solar, providing fair economic treatment towards solar electricity and by allowing new business models to emerge.

3 California governor signs 100% clean electricity bill, PV Magazine. 5 SolarPower Europe’s Grid intelligent Solar report. 4 https://ec.europa.eu/energy/en/topics/energy-strategy-and-energy- 6 World Economic Forum White Paper Digital Transformation of Industries: union/governance-energy-union/national-energy-climate-plans Electricity Industry.

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Solar energy generated in utility-scale solar PV power plants is becoming the cheapest source of electricity worldwide, more competitive than new nuclear and fossil fuel power plants (see graph below).

FIGURE 2 LCOE OF SOLAR ELECTRICITY GENERATION IN COMPARISON WITH OTHER POWER SOURCES

350

300

250

200

150 US$/MWh

100 Solar Wind

50 CCGT Coal

0 Nuclear 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Year

Source: Lazard 2018. ©

Solar prosumers now can sell their excess energy back to diversifying their local economies. A recent study from the grid, while receiving fair remuneration for it, including the EU Joint Research Centre10 found solar to be via aggregators, Power Purchase Agreements (PPAs) and particularly suitable for employing former coal workers peer-to-peer arrangements, embrace collective self- and to help drive regional development. consumption, aggregation and third party ownership and This unlikely yet successful “partnership” relies on the join renewable energy communities. difficulty of reconverting former coal mine land for alternative Solar self-consumption has become a standalone activities such as farming. Moreover, coal mines often leave business model beyond the residential sector. As a result, behind large lakes with high levels of sulphate. These polluted more and more companies are taking an active part in lakes are unfit for fishing and other leisure activities but can solar energy procurement to meet their energy needs, easily be converted into floating solar farms.11 7 power their businesses and reduce their carbon footprint – today 78 European companies have pledged to cover 1.6. Solar-based electrification delivers local 100% of their electricity supply with renewable energy.8 and qualified jobs for Europe

The impact of solar on jobs deserves a separate mention. 1.5. Solar supports a just transition in former According to IRENA’s 2018 Global Energy Transformation coal regions report, solar energy alone could create 11.85 million jobs Across Europe, some former coal mines or phased out fossil fuel power plants are being transformed into solar 7 IRENA Corporate Sourcing of Renewables: Market and Industry Trends 2018. farms9, and this trend is expected to grow as Europe 8 RE100. progressively transitions to a fossil-free energy system. 9 https://www.pveurope.eu/News/Markets-Money/Transfer-former-coal- mines-into-solar-farms This is hugely positive as solar can create new jobs, 10 EU coal regions: Opportunities and challenges ahead. 11 https://qz.com/1153672/from-anhui-to-appalachia-dead-coal-mines-are- innovation and investments in these local communities, being-reincarnated-as-solar-farms/

8 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM by 2050.12 In the case of Europe, the Lappeenranta provide refuge to endangered animal and plant species University has calculated that solar would employ 1.7 from the continuous ground disturbance and predation million people by the middle of the century.13 Solar is that often occurs outside the project fences. PV power therefore indisputably the most job intensive energy plants can provide long-term stable use of land for 25+ source, and Europe can greatly benefit from this. years, allowing native vegetation and species to return after the short-term construction disturbance period. Solar jobs are local, require skilled workers and extend beyond the solar sector - R&I and development, At the end of a solar project’s useful life, a site can be standardisation, installation, and maintenance services. restored to its original state and the materials can be Solar also creates manufacturing opportunities in Europe successfully recovered and recycled into new solar (equipment, inverters, raw and processing materials), panels and other products. In addition to reducing the with immense prospects for job creation on the need for energy-intensive primary raw materials, end-of- downstream part of the value chain (development, life PV recycling will help create new jobs and industries. installation, operation and maintenance). In Europe, solar The recoverable value of end-of-life PV panels is alone could create 500,000 jobs by 2030!14 expected to exceed $15 billion globally by 2050.16 Lastly, and although the PV market remains young, the need for decommissioning, reusing and recycling PV 1.8. Solar + green hydrogen – the perfect systems – robustly covered by Europe’s Waste Electrical combo for a fully decarbonised economy and Electronic Equipment Directive (WEEE Directive) - will The decarbonisation potential of solar can be even greater have a multiplying effect on the creation of qualified jobs when combined with generating green hydrogen. and on the development of innovative industrial Complementary to direct electrification, hydrogen gives activities, while also supporting Europe’s sustainability the solar industry a chance to contribute beyond the and circular economy ambitions. energy sector via the generation of green hydrogen as energy storage, greening of gas through methanisation of 1.7. Solar PV enables the EU economy to thrive hydrogen and feedstock for high-temperature local in a resource-constrained world and industrial processes that are difficult to electrifty. contributes to a circular economy. The load curve of solar generation is also a perfect match By decoupling electricity generation and economic growth for efficient green hydrogen production. Significant volumes from environmental impacts, solar energy is providing of battery storage will be plugged into the energy system in sustainable solutions to some of the world’s most pressing the next decades, driven by the massive increase of challenges. These include climate change, water scarcity, electrical vehicles and stationary home storage products. the growing consumption of natural resources for electricity Battery storage will be key to providing flexibility to the production and health impacts from air pollution. future energy system, charging during the day with the solar Considering the greenhouse gas (GHG) emissions surplus and balancing the energy system in morning and generated throughout its life cycle, solar produces 96% less evening periods. Despite this intra-day optimisation, most emissions compared to coal and 93% less compared to gas. energy mix scenarios anticipate high volumes of solar Compared to fossil fuel technologies, solar also shows clear energy being curtailed during midday.17 This surplus of solar environmental benefits in terms of particulates, ecotoxicity, electricity is a unique opportunity to produce 100% green human health impacts and eutrophication.15 While the hydrogen in Europe, while contributing to the stabilisation manufacturing of panels currently requires a moderate use of the energy system and avoiding costly balancing of non-rare metals, especially copper and aluminium, adjustments by electricity network operators. reductions in resource consumption are expected in the near future, alongside an increase in the efficiency of 12 IRENA´s 2018 Global Energy Transformation report. materials and power generation. 13 Energy Transition in Europe Across Power, Heat, Transport and Desalination Sectors. While the supply chain of fuels for fossil energy 14 SolarPower europe – Ernst & Young. 15 https://www.actu-environnement.com/media/pdf/news-25755-pnue- technologies always involves major disturbance to rapport-green-energy.pdf existing land and wildlife habitats, responsibly 16 https://www.irena.org/documentdownloads/publications/irena_ developed PV power plants can create new habitats and ieapvps_end-of-life_solar_pv_panels_2016.pdf 17 Bloomberg NEF New Energy Outlook 2018.

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Solar electricity will become an 2.1. Solar: the entry key to smarter and greener European inescapable interface for building stock decarbonising all sectors of the EU Europe’s building sector consumes 40% of final energy demand and is economy. From buildings to responsible of 36% of CO2 emissions. With about 75% of buildings in transport, industry or agriculture, Europe recognised as being energy inefficient and with very low renovation European consumers and rates (0.4-1.2% annually),18 the buildings sector remains one of the most industries will profit from solar- important yet challenging sectors to decarbonise. generated electricity. On-site solar generation (solar panels or building integrated PV (BIPV)) combined This chapter highlights the solar- with the retrofitting of existing building stock and electrification of final uses is powered business models that will the logical path towards greener, more efficient and self-sufficient EU cities.19 bring sustainable electrification to the next level, towards a fully Significant energy efficiency gains in buildings could be achieved through decarbonised EU economy. a change in solar-based electricity systems. In particular, heat pumps combined with solar power, which can produce up to 4 units of heat for each unit of electricity consumed, will play a central role in driving solar-based electrification in residential buildings, whether directly installed in homes, or used in district heating networks. Decentralised and easy to integrate in practically every urban infrastructure (façades, roofs, carports, street lightning, etc.), solar is the perfect partner to bridge the gap between passive and energy positive buildings. On-site solar combined with storage, demand response, digitalisation and home automation appliances, as well as BIPV will guarantee a direct and stable renewable supply to Europe’s future building stock. Such installations will set the scene for the uptake of new services for energy supply and aggregation. Even with positive measures put forward within the Clean Energy Package, the EU needs a little push to scale up on-site generation in buildings, which is crucially needed to bring costs down and attract public and private investments. Member states should consider setting targets for the deployment of rooftop solar (residential, commercial and industrial) in their 2030 plans and 2050 low emission and building renovation strategies.20

18 https://ec.europa.eu/energy/en/topics/energy-efficiency/buildings

19 Solar Skins: An opportunity for greener cities. http://www.solarpowereurope.org/solar-skins-an- opportunity-for-greener-cities-2/

20 SolarPower Europe launched a campaign to put solar in all new and renovated buildings in the EU. http://www.solarpowereurope.org/campaigns/solar-for-eu-buildings/

10 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM CASE STUDY THE LARGEST BIPV INSTALLATION IN SOUTHERN FRANCE: THE DEVELOPMENT OF SOLAR POWER WITHIN CITIES Located at the Saint-Charles international fruit and vegetable market, the eponymous project is currently the world’s largest major photovoltaic farm integrated into a building. The 97,000 Sunstyle® photovoltaic tiles used were not retrofitted to an existing roof but were used as the primary roof material. This innovative proprietary technology replaced 68,000m2 of roofing consisting of asbestos-cement sheets, known for their high levels of toxicity. As well as strengthening the structure of the buildings, these photovoltaic tiles also helped the site meet modern building standards. In addition, as these buildings are used to store fruit and vegetables, the electricity needed to refrigerate the storage areas is covered entirely by the output from the solar panels. A real green revolution for the Saint-Charles market, made possible by the cooperation of more than 50 joint owners who got behind this project. Renewable electricity produced by Saint-Charles’ roof powers more than 3,000 households and prevents the emission of 624 tonnes of CO2 a year. This project paves the way for the development of BIPV in our cities. Indeed, this success has allowed the Sunstyle® tile to be developed further, which is now available in several colours. This solar roof solution is therefore perfectly integrable and adaptable to local architectural features, while ensuring the basic functions of a roof, especially water-tightness.

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CASE STUDY IBERDROLA’S SMART SOLAR SOLUTION

Keeping people connected to an ever-increasing smarter world is a challenge for utilities. Iberdrola is at the forefront of the deployment of smart grids and customer solutions, which improve quality of service, enable new products and services and enhance customer choice. By embracing this challenge, the company is ensuring that the 100 million people it serves across the world can make the most of the digital revolution. Under this scene, Iberdrola is already providing pioneering smart products and services for its 16 million retail customers in Spain, the UK, Italy, Portugal and France: Iberdrola Smart Solutions • Smart Mobility to facilitate the development of EV offering integral solutions for customers: charging points, EV green specific tariff and public charging. • Smart Home to easily monitor and control the temperature, lighting, consumption… in order to maximise efficiency, optimise consumption and save energy from anywhere. • Smart Energy Services to provide customers with products and services for the maintenance, cover and installation of their electrical and gas appliances, giving them peace of mind. • And Smart Solar as follows: Iberdrola Smart Solar promotes greater self-generated green energy consumption. The product includes the tailored installation of solar panels – with or without a home battery –, fault repair with 24h customer service, online production monitoring and easy payment plans. This advanced solar solution lets any customer generate and use their own renewable power and is designed for efficiency and convenience. It is available for residential, rural and industrial customers.

As a result, a domestic installation with a battery can reduce demand consumption from the grid by up to 70%. In the case of small industry – without a battery – a grid demand reduction of up to 40% can be achieved.

More information is available at https://www.iberdrola.es/servicios/equipos/smart-solar

12 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM 2.2. From electromobility to solar mobility and are very sensitive to electricity prices –typically trains or city trams.25 A solar PPA can easily cover a large part of Achieving a carbon-neutral EU economy by 2050 will the electricity consumption and can be completed with require the decarbonisation of transport, responsible other renewable technology PPAs for the periods of the for more than a quarter of Europe's emissions.20 In 2011, day when the sun is not shining. the EU set a clear goal to reduce CO2 emissions in the transport sector by 60% by 205021 and proposed options Direct electrification: solar powered charging to raise this target up to 80% in its 2050 Long-Term infrastructure and vehicles Strategy.22 In early 2019, the EU completed the existing The development of electric mobility will require the framework and adopted23 a set of different targets for construction or renovation of major transport CO2 emission standards for light and heavy duty vehicles infrastructure, which represent high potential for solar by 2030. deployment. The most common model is solar carports Electromobility will be a key driver for the fast and cost- – rooftop solar installations on parking spaces – but other efficient decarbonisation of the transport sector, as well as demonstration projects are currently testing the possibility to reduce local pollution, noise and import dependency. to develop solar roads, solar railways or train tunnels. 26 Several studies show that with a well-designed policy Equipping the vehicle with PV panels is showing promising framework, the additional electricity demand resulting from results to increase the autonomy of the battery, thus the deployment of electric vehicles will be mainly met by reducing the need for a large and more expensive battery variable renewable power capacity, especially solar.24 system and extending the vehicle’s lifetime. Different products are already entering the markets: several models • In recent years, solar has become the most cost- of solar cars, both plug-in hybrid and battery electric, are competitive source of electricity. being developed by companies such as Toyota, Sono • The solar generation curve matches perfectly with the Motors and Lightyear One. Solar is also used to power load curve of electric vehicles charging in commercial auxiliary applications in the truck sector (lift gate, telematic or office buildings and in public charging stations, or equipment), as well as on some trains. Finally, solar boats that of electric trams or trains operating during the are used as public transportation and in the tourism sector day. Technologies such as V2G (vehicle-to-grid) can as a means to avoid noise and water pollution.24 further complement the role of renewables in the Further down the road: solar-based synthetic fuels system, by providing additional flexibility capabilities. Due to their extended range need or intensive energy use, • The modularity of solar systems makes them easy certain modes of transport, such as long-haul trucks, to integrate into urban landscapes and transport maritime transport and aviation, are currently not perfectly infrastructure, close to consumption points. This fit for direct electrification despite often taking bigger will reduce the need for grid use and reduce the responsibility for greenhouse gas emissions in the EU related grid reinforcement. transport sector. For these modes of transport, renewable This will also drive innovation in new solutions and and solar-based synthetic fuels, such as green hydrogen, business models bringing the solar and mobility sectors clean synthetic methane, or power-to-liquid fuels, can play together, allowing solar and EVs to mutually benefit. a crucial role. Conversion facilities could also absorb excess Combined with solar and smart charging technologies, renewable electricity and serve as short-term storage. electromobility has the potential to optimise the rate of self-consumption, reduce grid congestion and offer fast 20 When including international aviation and shipping. Source: European Environment Agency. 1a ECA special report 23 /2018 “Air pollution: Our and distributed flexibilities to the energy system. These health still insufficiently protected” showed that every year, air pollution models often rely on high-value energy management causes about 400,000 premature deaths in the EU. systems able to control the charging process, but also on 21 COM (2011) 144 White Paper: Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system. innovative inverters able to optimise direct solar charging. 22 https://ec.europa.eu/clima/policies/strategies/2050_en 23 Waiting for formal approval by European Parliament and Council. Finally, the massive uptake of PPAs is unlocking a new 24 2018 IRENA Global Energy Transformation, 2017 IRENA electric vehicles. opportunity for solar-powered electromobility. PPAs are 25 https://www.railjournal.com/passenger/light-rail/amsterdam-urban- particularly interesting for electric transport modes which rail-switches-to-renewable-energy/ consume a large amount of electricity during daytime 26 http://projects.mcrit.com/esponfutures/index.php/principal/51-solar-tunnel 27 https://solarimpulse.com/efficient-solutions/city-boats-lisbon

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CASE STUDY SOLAR-POWERED ELECTRIC BUSES FOR SANTIAGO’S PUBLIC TRANSPORT NETWORK

Enel X has distinguished itself in Chile for its innovative solutions, tailored and developed to support the spread of the culture of clean electricity and an increase in sustainable mobility. In December 2018, the city of Santiago presented the first 100 electric buses to be integrated into the public transport network. They will be charged in the 130 charging points available in two 100% electric bus termini, the first of their kind in Latin America. This project is the result of the collaboration between Enel X, the e-vehicle producer, BYD Chile and the Chilean public transport company, Metbus, and allows the electric fleet to charge in a solar parking area designed to house photovoltaic panels that, by generating clean energy directly from the sun, contribute to meeting the energy requirements for charging the batteries and the functioning of the infrastructure while offering zero- emissions public transport and improved air quality. The ecological buses produced by BYD, which are 12 metres long and can carry 81 passengers each, consume at least 70% less energy than their polluting predecessors and count with unique, innovative smart control technology that manages vehicle capacity and monitors the battery levels of the vehicles in real time, optimising their consumption. They are operative immediately thanks to the inauguration of the electric corridor on Avenida Grecia, which is part of their route and links five municipalities in the Metropolitan Region of Santiago. Another advantage for city residents is the low level of noise pollution, both on the buses and on the streets of the densely inhabited metropolitan area.

Source: Enel X.

14 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM CASE STUDY CHARGEPOINT: PARTNERING WITH A LOCAL UTILITY TO SOURCE RENEWABLE ENERGY IN CHARGING STATIONS

ChargePoint is the largest electric-vehicle charging network in the world. In 2019, ChargePoint set up a partnership with one of the largest utility in Germany that would allow electric vehicle charging station operators to purchase renewable certificate in order to green the charging process. Providing renewable power generated on site is not always possible if there is no direct connection between the generation source and the electricity consumption point. The electricity used to power electric cars cannot always be 100% renewable at the time of charging but the utility can compensate by purchasing green certificates of the desired quality (e.g. Gold Standard that ensures additionality of renewables, solar only GOs, etc.). The certificates can only be issued for renewable electricity that has not received subsidies via the feed-in-tariffs law (EEG). They compensate the grey part of their electricity consumption through a trading system. ChargePoint provides the exact kWh per site, per multi-site customer and per fleet real time and on a yearly basis to the utility. The utility then deals with the purchase of certificates. The first purchases will take place for customers applying for the federal transport ministry 4th funding call, so for publicly available AC and DC chargers in early 2020. A first estimate is a purchase deal for 50 charging points in 2020.

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2.3. Solar supports a greener and competitive as the RE-Source Platform,25 are an example of how European industry attractive the reduction is in terms of energy costs. As the costs of solar electricity will continue to fall in the Renewables are increasingly being used by energy coming years, energy intensive companies will be able intensive or heat intensive industries, defying the to benefit from low power prices through long term technical barriers to grasp the even bigger potential in energy contracts, while meeting their sustainability electrifying industrial processes. Solar powering the goals at the same time. direct and indirect electrification of Europe’s industry is not only attractive for CO2 emissions reductions but is Europe can also use the industrial potential of a solar indispensable for the achievement of the Paris industry. For example, the Clean Energy Industrial Agreement Goals. Forum,26 created by the European Commission, sees solar as a vehicle to create an industrial manufacturing As far as it is possible, direct electrification solutions hub (for solar products, including wafers, cells and should be applied, however, electrification of high- modules) in Europe.27 degree heat and steam is challenging. Here, indirect electrification can help overcome the main problems Indirect electrification: solar-powered molecules for associated with the use of renewables in industrial the EU Industry and other sectors processes. In other processes where direct With a carbon neutral economy by 2050 in mind, Europe electrification is an alternative, energy efficiency and must explore what could be the contribution of decarbonisation can be embraced by shifting from fossil renewable based power-to-gas technologies to the fuels to renewable electricity. Besides, improvements in decarbonisation of energy intensive sectors that are process efficiency and demand response can enhance difficult to electrify (steel, fertilisers, chemicals, cement, the adoption of variable renewables and balance the etc.), and other sectors difficult to decarbonise via solar penetration in the system. electrification such as shipping, aviation and heavy-duty In this context, solar is the perfect partner to allow the vehicles. This means new opportunities for the development of commercial and industrial self- European industry, which can become a frontrunner in consumption. For example, on-site solar or near-site the development of emerging energy carriers like green solar has the ability to reduce the needs for grid hydrogen from electrolysis. reinforcement and foster the participation of active Solar departs from a privileged position to be at the consumers in energy markets, allowing consumers and forefront of this new generation of renewable-powered businesses to take control of their energy bill, benefiting molecules. Thanks to its remarkably competitive prices from reduced energy expenditures and having the and high scalability potential, solar can be key to opportunity to sell energy excess. A proper demand accelerate the decarbonisation of energy-intensive response market will allow industry to aggregate sectors across the world through indirect electrification. demand and take part of energy markets, thus better The potential is even greater in markets with high shares balancing their risks, needs and opportunities based on of solar penetration. In these markets, solar will be able their energy production and consumption profile. cover the significant volumes of cheap electricity that the For more energy intensive businesses, PPAs will play a cost-efficient production of renewable-based hydrogen prominent role. Initiatives that promote the will require. For these business models to thrive, we will development of corporate sourcing of renewables, such need more solar energy in the world’s energy systems.

25 http://resource-platform.eu/about/

26 https://ec.europa.eu/energy/en/events/clean-energy-industrial-forum- renewables

27 SolarPower Europe has asked for 5GW cell and module factories in Europe, driven through relaxation of state aid laws and specific regulatory support to ensure that finance is accessible, land is made cheaply available to manufacturers, energy costs are kept low and that administrative burdens to develop and grow solar manufacturing companies are addressed and reduced.

16 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM CASE STUDY ELECTRIFYING INDUSTRY VIA PPAS - KETTON CEMENT WORKS – UK

The Ketton Cement Solar Farm is located just outside the village of Ketton on a former quarry, in the county of Rutland in the United Kingdom. The solar farm is 12 MW in size. Over the course of the project lifetime the solar farm will reduce the cement factory’s energy bill by approximately 10 million GBP, although the main driver for the project was reducing CO2 emissions. Overall the project generates enough energy to cover 13% of the cement work’s annual demand. The project was developed by Lark Energy in partnership with Armstrong Energy and Hanson Cement, who own the cement factory. The funding was provided by Downing. Lark Energy designed the solar farm to enable active and reactive power management and to protect the grid from reverse current. This has a number of advantages, including minimising the need for costly 33kV distribution grid upgrade work, reducing the energy costs for Hanson and enabling the inverters to be used as capacitor batteries storage at night. This was the first time inverters had been used in this way in the UK. The project is currently 100% self-consumption for Hanson Cement, but a connection to the local distribution grid exists as a back-up. A third of the power is provided to Hanson free of charge (in lieu of land rental payments) and the rest is sold at a fixed PPA price.

Source: Lark Energy.

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CASE STUDY ELECTRIFYING INDUSTRY VIA PPAS IN SPAIN

FORTIA ENERGIA, the Spanish energy sourcing platform for large industrial consumers, and Statkraft, signed the first long-term power purchase agreement for large industrial customers in Spain. For a period of ten years Statkraft will supply 3000 GWh electricity to FORTIA, that manages the power supply of large industrial companies in the steel, cement, metallurgy, chemical, paper and industrial gases sectors in the Iberian market. The energy will be sourced from Statkraft’s Spanish portfolio which primarily consists of new wind and solar projects currently under construction. Statkraft has closed several power purchase agreements (PPA) for both, fully merchant projects as well as projects that were granted permission/won the tender in the Spanish auctions. The recently signed agreement is part of FORTIA's strategy to provide the industry with competitive, diversified and balanced access to energy markets through new contractual models such as PPAs which are an opportunity for producers and consumers in the context of the energy transition.

18 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM 2.4. Innovative solutions for the optimisation of Solar PPAs can provide an answer to volatile future land use electricity prices that may have negative impacts on agricultural business. Large-scale consumers of energy Even though solar technologies can require significant can benefit from reduced energy prices even without land for their operation, their modularity allows them to investment, as the PPA provider can take care of the be installed in places where other renewable installation and maintenance of the solar facilities. technologies cannot. This means that solar has the potential to maximise the usability of the finite European Floating solar: conquering new horizons land, combining energy production with other purposes Even in land-scarce countries, solar always finds new and making it possible for both to share the same space. and innovative ways to be present. For example, solar Agri-photovoltaics: a new ecosystem optimising developers have found ways to deploy panels on water agricultural production surfaces to address the challenge of land availability. They have literally made solar float. This technology, Agriculture related emissions will be one of the hardest called floating solar, has enormous potential29 and to reduce by 2050. Better land management and offers environmental advantages like preventing algae agricultural practices could avoid significant amounts of growth in dammed areas or impeding water emissions but with current technologies, agriculture evaporation in hotter areas. emissions cannot be fully eliminated. Agri-photovoltaic technologies bring new solutions to the equation to Even though floating systems are still more expensive mitigate this impact, providing a win-win combination to install (they have to withstand tougher conditions) that can deliver enormous gains and rural economic they are more efficient because the water’s cooling development opportunities for the sector. Solar panels effect helps reduce thermal losses.30 This, combined can be installed together with many crops, avoiding with other technological developments could soon competition for soil and even enhancing the production make them as competitive as ground-mounted of certain agricultural products. Some agricultural systems. Besides, in certain locations like hydropower practices like grazing can benefit from this dual use, dams, they can even use existing transmission lines. maximising land usability. Panels can also serve as refuge Aware of its potential, countries like the Netherlands are for farm animals and enable the protection of local developing ambitious plans to make room for floating biodiversity.28 Besides, solar provides farmers with an PV installations in its approximately 52,000 hectares of additional and long-term source of income. shallow inland water.31 The country’s first floating solar By introducing support policies to produce solar energy, project was announced in September 2017 and the agricultural sector can diversify its activities and open currently, the Dutch developer Groenleven is planning up access to new markets that are economically viable in a 48 MW floating installation at a depleted sand the long term. Specific funding for agricultural systems extraction site that will be Europe’s largest floating PV (solar PV powered water pumps) and for the project and one of the largest in the world. development of hybrid systems are essential for the deployment of solar in rural areas and for the attractiveness of joint activities.

28 https://www.solar-trade.org.uk/solar-farms-biodiversity-study-2/

29 The technology’s potential could be about 400 GW. World Bank - Where Sun Meets Water : Floating Solar Market Report http://documents.worldbank.org/curated/en/579941540407455831/Wher e-Sun-Meets-Water-Floating-Solar-Market-Report-Executive-Summary

30 World Bank - Where Sun Meets Water : Floating Solar Market Report http://documents.worldbank.org/curated/en/579941540407455831/Wh ere-Sun-Meets-Water-Floating-Solar-Market-Report-Executive-Summary

31 The Dutch Foundation for Applied Water Research (STOWA) recently published guidelines and tools for companies interested in developing floating PV projects across the water-rich Netherlands. https://www.stowa.nl/publicaties/handreiking-voor- vergunningverlening-drijvende-zonneparken-op-water

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CASE STUDY AGRI-PHOTOVOLTAIC FOR ISLANDS’ AUTONOMY: A COMBINATION OF SOLAR, STORAGE AND AGRICULTURE

With an installed capacity of 9MW, the Les Cèdres solar farm is the second facility in Réunion with integrated storage. It has a storage capacity of 9MWh. This storage helps support the grid, thanks to stable and continuous electricity supply, thus cancelling out the effects of intermittence caused by weather conditions. By powering 5,200 households, the stored power at the Les Cèdres solar farm alone is sufficient to cover the energy needs of the entire town, making Etang Salé the first green energy town in Réunion. Each year, the plant contributes to reducing CO2 emission by 11,400 tonne. The solar farm spans two sites. The first is an Aquanergie solar farm, consisting of photovoltaic sun screens above 12 fish rearing pools, with a capacity of 1.5 MWp. The operator of this site is Max Dyckerhoff, a pioneer in fish farming on the island, who for more than 25 years has supplied the local market, particularly with tilapia. The shades have the advantage of considerably reducing the death rate of the fish by protecting them from predation by birds and by limiting temperature variations and hence evaporation, thus improving the management of the water cycle and water oxygenation. Workers are also protected from the heat and can now work throughout the day rather than just early in the morning. The second site is an Agrinergie® farm, where the photovoltaic screens have been raised to allow mechanised farming of the whole of the 7.5-hectare site. Akuo Energy’s partner for this site is Agriterra, an agricultural company, which is developing a major permaculture project, mixing livestock, forestry and market gardening. Produce from these organic farms is destined for the local market, and several agricultural jobs have been created.

20 / SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM CASE STUDY FLOATING SOLAR

The O'MEGA1 project, winner of the first half of the CRE4 tender in 2017, will be Akuo Energy's first project based on floating solar technology (Hydrelio® by Ciel et Terre floats). The project is located in the commune of Piolenc, in the department of Vaucluse in Southern France. Developed since 2014 by the teams of Akuo Solar, this project invests in an artificial site, formerly exploited for years for the extraction of materials. Akuo Energy and the quarry operator have worked jointly on the restoration of the site through the solar project to enable the transition from one activity to another and the ecological rehabilitation of the site. Its annual production will provide electricity to more than 4,733 homes with green energy and respect for the environment, with more than 13,000 tonne of CO2 emissions saved annually, for a period of at least 20 years. Currently under construction, the project will be launched in Autumn 2019. The Hydrelio® system, which helps reduce conflicts over land use, can be installed on flood and irrigation overflow lakes, drinking water reservoirs, industrial pools, flood plains and quarry lakes. To date, the technology developed by Ciel & Terre already has a proven international track record with 235 MWc of floating solar plants installed with Hydrelio® products worldwide. The project is also subject to financing innovation for citizens involvement: for the first time, Akuo Energy has opened up the project’s capital to people who have a home in the Vaucluse or neighbouring departments. The aim of this approach is to encourage citizens to become involved in the financing of the energy transition using the region’s stakeholders. The municipality of Piolenc has also decided to invest alongside local residents under the same conditions in order to benefit from the project’s financial profitability.

SolarPower Europe / SOLAR ELECTRIFICATION: SOLUTIONS FOR A DECARBONISED ENERGY SYSTEM/ 21 REFERENCES

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