Australia has a golden opportunity to expand its solar energy manufacturing capacity, as the industry booms and nations scramble to cut their over-dependence on China, a report by the Australian Photovoltaic Institute said.
The country has been installing 4 gigawatts (GW) of solar photovoltaic (PV) capacity each year, but meeting just 3 percent of that from a local supplier, Adelaide’s Tindo Solar.
That annual installation tally, though, is predicted to triple by 2050, particularly if Australia becomes a major supplier of hydrogen produced by renewable energy for export.
Photo: Bloomberg
“We have a pressing need, we have the natural resources and we have a very sizeable market,” the report said. “Unless Australia gains control over the most strategic parts of the PV value chain, the development of any ‘green’ export market will be completely dependent on foreign powers.”
Renate Egan, the institute secretary and head of the Australian Centre for Advanced Photovoltaics, said China should remain an important supplier of panels to Australia, but it is important to diversify supply, including by using local firms.
“You can liken it to Europe’s reliance on gas from Russia,” Egan said, referring to shortages and soaring gas prices after Moscow imposed export curbs in retaliation to sanctions.
“The world is relying increasingly on solar energy generation for the energy transition [from fossil fuels],” she said. “They’re becoming aware of the risks in that over 90 percent of the tech comes from China.”
The COVID-19 pandemic helped spur demand for more local manufacturing capability when Australia struggled to secure supplies of vaccines and medical equipment.
Ongoing supply chain disruptions, particularly as China maintains its “zero COVID” policies, have given added impetus to calls for more domestic production capability.
The present trade tensions between Australia and China exacerbated “the potential threat to supply restrictions or sudden price changes,” the report said.
“Adding to this risk is the growing concern over the possible use of forced labor in parts of China, where much of the silicon, wafers and steel used in PV components are produced,” it said.
Egan said Australian technology was used in 90 percent of PV panels made today, underscoring the country’s scientific pedigree in the field. The country does not need to make all of the components in modules, but could specialize.
Local firms could make glass, aluminum frames, polymers or the electronics such as inverters, while leaving production of polysilicon — a key raw material — to others.
“I think it’s at the top end of silicon refining and then module assembly,” Egan said. “We need to be making some smart decisions and deploying at scale.”
The paper cited existing suppliers, including Selectronic, one of the world’s oldest makers of inverters. SunDrive is a firm considering commercial-size silicon-based solar cell fabrication in Australia, while 5B is aiming at fast, low-cost PV deployment to supply some of the multi-gigawatt solar farms planned for northern Australia.
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