Solar Photovoltaic (PV), the technology which converts solar directly into electricity, is poised to become one of the most important energy technologies in the fight to meet global sustainable energy and climate commitments.
Solar PV use in Ireland
Since 2010, Solar PV has been the fastest growing power generating technology worldwide, in terms of new capacity additions per year.
Ireland has a small but growing solar PV deployment industry with just over 6MWp (Megawatt Peak) installed to date, almost entirely on rooftops.
There has been considerable debate in recent years on the possible role of solar photovoltaics (PV) in the future Irish energy mix. The debate has focused on the extent to which local deployment of rooftop and ground-mounted solar PV should be driven, and what opportunities can be leveraged to grow the contribution of this technology towards Ireland’s 2020 national renewable energy target.
Ireland’s place in the global solar PV supply chain
One perspective that has been missing from the debate is the significant economic opportunity that exists for Irish research and industry to stake a claim to the global solar PV supply chain. A new report by SEAI estimates that by 2030 Irish business could capture up to €200 million annually of a European solar PV market worth €10bn. Irish organisations are already active in niche areas across the global solar supply chain and the report identifies considerable scope to build on these.
Ireland does not immediately seem like an obvious contender to become an exporter of services, components and products to solar installations across the world. We have well-established supply chain strengths in wind, bioenergy and wave technologies*, but Ireland is not recognised for its role in the solar sector.
Competition in the conventional solar supply chain
Competition in the conventional solar supply chain is fierce. Production of the most commonplace silicon solar panels is dominated by a handful of manufacturers in China and Taiwan. There is a range of well-established incumbents who provide components such as inverters, racking, wafers and glass. Silicon modules have become commodified and there appears to be little space for new market entrants.
The door, however, is by no means closed to Irish industry and research.
Improving conventional technology
Firstly, silicon module manufacturers are under immense pressure to deliver efficiency gains at lower cost. This means there is still scope for delivering marginal gains in efficiency through innovative processing techniques. Fortunately, Ireland boasts considerable know-how in semiconductor processing. One start-up, Nines Photovoltaics, specialises in silicon wafer etching and is attracting attention from international solar module manufacturers seeking these marginal gains. Providing licensing of innovative technology, like this one, to tier one manufacturers could prove lucrative. This is due to the fact that the PV modules can account for almost half of the total investment in a solar installation.
New technologies and applications
Secondly, there are a range of promising PV technologies and applications that Irish research and industry are well-placed to support through to commercialisation. Irish research institutions have a strong pedigree in materials science research. In particular, demonstrating know-how in a range of emerging photovoltaic materials, including perovskites, quantum dots, and organic semiconductors. Such materials can be integrated into a range of applications, producing energy in products such as wireless sensors or consumer electronics.
One application in particular that Irish firms could target is Building Integrated Photovoltaics (BIPV). This is a system that consists of solar cells or modules that are integrated in building materials or elements as part of the building structure including materials such as glass, tiles and facades.
There has been much excitement about BIPV products such as Tesla’s solar roof tile. So far however, the market has failed to fully deliver. There are challenges with scale, cost, and most importantly, finding an efficient route to market., Technical breakthroughs are bringing the technologies closer to commercialisation. Several companies in the US, for instance, are developing the distribution channels needed to find a sustainable customer base for their products. There is scope for Ireland to become both a developer of and a test-bed for these products, given the combination of stringent building regulations, a strong building materials sector, and cutting-edge research into suitable solar materials.
Finally, in PV installations there is still considerable scope for cost reduction in the ‘balance of system’ costs, aside from those for the modules themselves. Ireland has strengths in IT, telecommunications and data analytics and there is an opportunity for focusing on developing software and other smart grid solutions which optimise the production and distribution of electricity generated in solar installations. Firms such as NovoGrid, whose unique control platform maximises the output of renewable generators, stand to benefit from a rapidly growing global market.
Carving out niches
As the global PV market grows, so too does the range of products and services supporting it. Irish businesses can carve out niche areas for themselves within a huge global market, by focusing on existing Irish strengths such as ICT, materials science, photonics, process engineering, storage and building materials
This new report from SEAI offers views from Irish stakeholders in the sector on how best to maximise this opportunity, including establishing stronger ties between research and industry, and targeting research funding towards the priority areas identified. The report also profiles some of the Irish innovators already active in the global solar supply chain and those working to develop new technologies and applications.
In the ongoing debate about the role of solar PV in meeting our own energy demands, it’s worth recognising that Ireland can be more than just a technology taker in this sector. By recognising where our strengths lie and playing to these, the outlook for solar PV could be very sunny indeed for Irish business.
Read the complete report: ‘Ireland’s Solar Value Chain Opportunity’
SEAI's RD&D Programme aims to improve the coherence of Irish energy research and development, building a cleaner and more secure energy future, while enhancing our knowledge economy.
*As highlighted in SEAI’s 2014 report Ireland’s Sustainable Energy Supply Chain Opportunity.
Brian Denvir is part of SEAI’s Energy Modelling Group, providing evidence and analysis to inform policy. Brian holds a B.A in Theoretical Physics from Trinity College Dublin and an MSc in Sustainable Energy Futures from Imperial College London. Prior to joining SEAI, Brian worked as a senior consultant at E4tech, a strategy consultancy specialising in energy. He advised a range of public and private sector clients on matters related to energy policy, technology and sustainability, and led E4tech’s services in the solar PV sector. Brian currently coordinates SEAI’s activities in solar PV.