The European solar industry has embarked on an initiative to secure an Important Project of Common European Interest (IPCEI) for solar inverters. During the presentation of the paper "Inverters 2.0: Strengthening Europe’s Inverter Industry," representatives from the sector discussed the IPCEI concept with Kerstin Jorna, Director-General for Internal Market, Industry, Entrepreneurship, and SMEs at the European Commission.

The initiative aims to ensure that European inverter manufacturers can leverage technological advancements essential for the electrification and digitalization of the energy system. By implementing the IPCEI, the goal is to keep the EU inverter ecosystem at the forefront of global innovation.

European inverter manufacturers are currently facing significant competition. A swiftly executed IPCEI would foster innovative and sustainable investments, helping Europe to remain competitive on a global scale. Dries Acke, Deputy CEO and Policy Director at SolarPower Europe, emphasized the importance of building on Europe's success in inverter technology. He noted that the electrification wave offers a critical chance for European inverters to secure an innovation edge and a strong global market presence. He described the IPCEI as essential for maintaining Europe’s leading position in advanced inverters that support the grid, enhance cybersecurity, and improve digital interoperability.

The IPCEI targets several key areas for improvement:

1. Enhancing the technical capacity of power electronics.
2. Ensuring access to critical inverter components and reducing material needs.
3. Improving grid-forming capabilities for smoother solar integration.
4. Strengthening cybersecurity and digitalization, including a roadmap for cyber-preparedness and interoperability within the European energy system.

Three primary projects under the IPCEI would focus on developing better hardware, smarter software, and a groundbreaking technological innovation. Germany, Austria, Spain, and Italy, which host the most significant inverter manufacturing capacities, are identified as potential leaders for this initiative.

The Joint European Forum for IPCEI (JEF-IPCEI) will hold its next meetings in Q4 2024, chaired by Ms. Jorna and Olivier Guersent, Director General for Competition at the European Commission. These meetings will evaluate candidate technologies and determine their suitability for the IPCEI process.

Current market data

The "Inverters 2.0" paper also provides current market data, highlighting that in 2023, the EU had a solar inverter manufacturing capacity of 82.1 GW, compared to 60 GW of solar installations in the same period. Despite some EU inverter companies experiencing growth and announcing reinvestment plans, their market share in Europe is declining. The inverter industry employed around 35,000 people in the EU in 2023, with at least 14 companies operating within the region. Spain and Germany lead in inverter production, with Spain contributing nearly half of the EU’s manufacturing capacity through four companies, and Germany hosting almost a third through at least eight producers.

Understanding IPCEIs

IPCEIs are ambitious, cross-border innovation and infrastructure projects led by Member States. They significantly contribute to EU strategies, such as the European Green Deal and the Digital Strategy, generating positive economic impacts beyond the participating Member States. Funded by national budgets, Member States determine the project's scope, select participating companies (preferably through open calls), and agree on project governance. Public support for these projects, constituting State aid under EU rules, must be notified to the Commission for assessment and approval. The Commission is committed to supporting Member States and the industry, providing guidance, coordinating efforts, and conducting swift assessments of proposed projects.