Photovoltaic systems: Investment in the future

The European Union wants to become climate neutral by 2050, Germany has set itself the same objective, but five years earlier. The Ukraine war is accelerating the pace of change: In view of the massively rising energy prices, it makes sense to produce your own electricity. An investment in photovoltaics (PV) currently pays for itself quickly.

Four trillion dollars for environmentally friendly energy

The energy sector worldwide is facing an unprecedented transformation: the International Energy Agency (IEA) estimates the cost of the transformation to climate-friendly energy sources at four trillion dollars. Much of this will be shouldered by companies that are not based in the energy sector by transforming them from mere consumers to co-producers for their own energy needs, for example by investing in environmentally friendly combined heat and power plants, biogas or photovoltaic systems.

Our experts are familiar with the markets for environmentally friendly energies and advise:

  • Energy companies on how to switch from fossil fuels to renewable energy sources
  • Construction companies that want to include renewable energies in their service portfolio
  • Companies from all industries that want to invest in renewable energies as part of CAPEX projects

Electricity production costs of photovoltaic systems already competitive today

Photovoltaic systems in particular have long been profitable, and even more so in light of the massive increase in energy costs. Thanks to efficient and mature technologies, electricity generation costs are competitive (see chart), even though prices for equipment and raw materials have risen.

Even in terms of energy input and output, photovoltaics are remarkably efficient: in Northern Europe, a photovoltaic system has already produced the energy needed to generate it after about one year and three months. In Southern Europe, the break-even point is reached three or four months earlier.

Many companies and private individuals have understood this, which is why the installation of a photovoltaic system is currently failing due to a lack of availability and not due to a lack of interest.

As a specialized consulting firm for procurement and supply chain management, we advise you on:

  • the various PV technologies, their costs and areas of application
  • markets and suppliers worldwide, through our location in Shanghai especially in China. Given that a large part of production now takes place in China, we are able to develop additional capacities here.
  • Solutions for optimizing OPEX and CAPEX to minimize energy production costs
  • The issue of sustainability affects the entire energy sector and both B2B and B2C environments, so alternative energy generation methods play a crucial role.

 

Icon - Sustainability in the energy sector

Sustainability in the energy sector

The issue of sustainability affects the entire energy sector and both B2B and B2C environments, so alternative energy generation methods play a crucial role.

A dynamic photovoltaics environment

Photovoltaics is a rapidly growing market: between 2010 and 2020, demand grew by more than 30 percent annually worldwide, according to the Fraunhofer Institute. The Ukraine war and the resulting energy uncertainty in Europe are expected to accelerate this trend. Capacities will not be able to grow at the same rate, especially since the key raw material silicon is also in demand in other contexts – such as the production of microchips.

Another critical factor is Europe’s heavy dependence on Asia: Europe builds more than 20 percent of the world’s photovoltaic capacity per year, but produces only three percent of the systems itself. 95 percent of PV modules are manufactured in Asia, 67 percent in China alone. In order to benefit from the added value and to ensure availability, capacities should be built up again in Europe. The know-how would be available: Germany was the technology leader in the early years of photovoltaics.

Our energy experts monitor both the dynamic renewable energy markets and the commodity markets. With our market knowledge, the use of Should Costing, Total Cost of Ownership (TCO) analyses and our experience in CAPEX projects, we determine cost-optimal solutions for you.

Get to know our experts

Kevin Domnick

Principal

office@kgmstrategy.com Contact

Xavier Clère

Principal

xavier.clère@kgmstrategy.com Contact