Periodic Reporting for period 3 - CIRCUSOL (Circular business models for the solar power industry)
Reporting period: 2021-06-01 to 2022-11-30
Solar power and electric vehicles (EV) are set to play a leading role in the achievement of the 2030 EU renewable energy targets and the commitment to carbon neutrality by 2050. Importantly, solar photovoltaics (PV), in combination with energy storage, also has the potential to significantly enhance European energy security, provide citizens and industry with competitive energy, and lead to the creation of thousands of jobs. While the expected rapid growth of the solar power sector over the coming decades will bring along various resource and waste management challenges, following a circular economy strategy can ensure that these will be handled in a proactive and future-proof manner.
In CIRCUSOL, a number of innovative approaches and strategies towards circular business models in these two sectors were explored. The focus was on reuse, repurposing, ecodesign and recycling. The aim was to address the transition to a circular solar power system, by
- developing a circular service design support toolbox for service providers,
- creating awareness and intense collaboration with stakeholders in real-life demonstration projects,
- developing an asset data platform prototype to share useful information between key stakeholders,
- developing labelling and (re)certification protocols for second-life PV modules and batteries, and
- the dissemination of technological innovations to enhance circularity
CIRCUSOL results clearly show the technical feasibility to repair and refurbish defect and decommissioned PV modules, both onsite and offsite, and redeploy them in a second-life application, accompanied by generating social and environmental benefits. Modules experiencing early- and midlife failures are particularly suitable for this. Quality-testing and fast and low-cost repairs are possible and detailed guidelines and recommendations to ensure customer confidence in reuse modules are under preparation.
Economic viability and customer acceptance in the EU is currently limited to a few specific cases (e.g. off-grid applications, agrosolar,…). Demand for second-hand exists outside Europe, and particularly in low-income regions with insufficient access to modern energy services, however, lack of appropriate local EOL treatment facilities in these regions can compromise the environmental benefits. Experience in CIRCUSOL with service-based business models as a catalyst for the deployment of reused modules was mixed. While such models were successfully implemented in some pilot projects, it was also found that many home-owners have strong preferences for purchasing and owning a PV system.
In line with the experience in other pilot projects, the technical feasibility of repurposing discarded EV batteries and deploying them in a second-life application for the stationary storage of solar power has been successfully demonstrated. Demand for stationary battery capacity will increase, due to continued diffusion of non-dispatchable renewable energy sources. It is still debated under which conditions repurposed batteries will be able to be economically competitive with newly manufactured batteries in the stationary energy storage market. Presently, the costs for repurposing are amplified through the lack of scale-economies and OEMs (Original Equipment Manufacturers) reluctance to permit repurposers access to the original battery management system. The environmental benefits of repurposing batteries need to be carefully assessed in order to gain a better understanding under which boundary conditions repurposing could be a desirable circularity strategy. Repurposing of batteries also faces competition from the recycling pathway, which would quicker recirculate battery raw materials into the manufacturing of new EV batteries. Finally, the implication of next generation battery technologies on the availability of batteries suitable for repurposing, as well as on the market competitiveness of repurposed batteries in the stationary energy storage market are not well understood yet.
In CIRCUSOL, a number of innovative approaches and strategies towards circular business models in these two sectors were explored. The focus was on reuse, repurposing, ecodesign and recycling. The aim was to address the transition to a circular solar power system, by
- developing a circular service design support toolbox for service providers,
- creating awareness and intense collaboration with stakeholders in real-life demonstration projects,
- developing an asset data platform prototype to share useful information between key stakeholders,
- developing labelling and (re)certification protocols for second-life PV modules and batteries, and
- the dissemination of technological innovations to enhance circularity
CIRCUSOL results clearly show the technical feasibility to repair and refurbish defect and decommissioned PV modules, both onsite and offsite, and redeploy them in a second-life application, accompanied by generating social and environmental benefits. Modules experiencing early- and midlife failures are particularly suitable for this. Quality-testing and fast and low-cost repairs are possible and detailed guidelines and recommendations to ensure customer confidence in reuse modules are under preparation.
Economic viability and customer acceptance in the EU is currently limited to a few specific cases (e.g. off-grid applications, agrosolar,…). Demand for second-hand exists outside Europe, and particularly in low-income regions with insufficient access to modern energy services, however, lack of appropriate local EOL treatment facilities in these regions can compromise the environmental benefits. Experience in CIRCUSOL with service-based business models as a catalyst for the deployment of reused modules was mixed. While such models were successfully implemented in some pilot projects, it was also found that many home-owners have strong preferences for purchasing and owning a PV system.
In line with the experience in other pilot projects, the technical feasibility of repurposing discarded EV batteries and deploying them in a second-life application for the stationary storage of solar power has been successfully demonstrated. Demand for stationary battery capacity will increase, due to continued diffusion of non-dispatchable renewable energy sources. It is still debated under which conditions repurposed batteries will be able to be economically competitive with newly manufactured batteries in the stationary energy storage market. Presently, the costs for repurposing are amplified through the lack of scale-economies and OEMs (Original Equipment Manufacturers) reluctance to permit repurposers access to the original battery management system. The environmental benefits of repurposing batteries need to be carefully assessed in order to gain a better understanding under which boundary conditions repurposing could be a desirable circularity strategy. Repurposing of batteries also faces competition from the recycling pathway, which would quicker recirculate battery raw materials into the manufacturing of new EV batteries. Finally, the implication of next generation battery technologies on the availability of batteries suitable for repurposing, as well as on the market competitiveness of repurposed batteries in the stationary energy storage market are not well understood yet.
Achievements:
WP1 (Eco-system analysis and simulation):
- A PV-system simulation model was developed to evaluate policy scenarios;
- A number of model scenarios for the development of the PV market were analysed;
- A systematic literature review of the solar photovoltaic value chain for a circular economy;
WP2 (Circular business co-creation) :
- Circular business model co-creation in demonstrator projects, leading to new business plans for the project partners;
- A prototype asset database for circular PV;
- Environmental and economic feasibility assessment for 2nd life PV use cases, published by the International Energy Agency;
WP3 (Circular supply chain development):
- Technical standards for 2nd life stationary batteries;
- Technical report regarding 2nd life PV;
- Ecodesign guidelines for PV manufacturing;
WP4 (Large -scale demonstrators):
- Demonstrator projects (in Belgium, Switzerland and Germany), which will live on after the project. Technical feasibility of circular applications (2nd life PV, battery storage) was proven. Service models for PV and battery storage were in some demonstrators successfully implemented. It was shown that a market for service models exists, as well as for second-life PV and storage. New business opportunities were identified.
WP5 (Exploitation, dissemination and communication):
- Guide for policy makers;
- MOOC for business and academia.
Exploitation:
- A business innovation methodology guide was developed.
- The policy guide served as a basis for an online workshop in September 2022 and was presented at the European Parliament during a Working Breakfast on 15 November 2022.
- CIRCUSOL project partners SunCrafter, BKW, Futech and Ecopower developed business plans for a wider roll-out of demonstrator results. Also Luxchemtech and Solitek developed business plans for further market exploitation. Luxchemtech’s business plan envisions the operation of a recycling plant for PV waste in Germany. Solitek focuses on the establishment of a regional reuse centre for PV modules in North-Eastern Europe.
- In the international standardization committee for PV (IEC TC82), a standardized assessment procedure for 2nd life PV will be further developed.
- In the batteries standardization committee (IEC TC21), standards for 2nd life stationary batteries will be further developed.
- Teaching materials were developed for a Massive Open Online Course (MOOC) on Circular Economy and Sustainable Materials Management, hosted by Lund University. This course is already online since 2018. Approximately 50.000 participants have enrolled - https://www.coursera.org/learn/circular-economy)
- Four videos were produced for dissemination via youtube.
- Eight scientific papers were published in the cours of the project; four are under preparation.
WP1 (Eco-system analysis and simulation):
- A PV-system simulation model was developed to evaluate policy scenarios;
- A number of model scenarios for the development of the PV market were analysed;
- A systematic literature review of the solar photovoltaic value chain for a circular economy;
WP2 (Circular business co-creation) :
- Circular business model co-creation in demonstrator projects, leading to new business plans for the project partners;
- A prototype asset database for circular PV;
- Environmental and economic feasibility assessment for 2nd life PV use cases, published by the International Energy Agency;
WP3 (Circular supply chain development):
- Technical standards for 2nd life stationary batteries;
- Technical report regarding 2nd life PV;
- Ecodesign guidelines for PV manufacturing;
WP4 (Large -scale demonstrators):
- Demonstrator projects (in Belgium, Switzerland and Germany), which will live on after the project. Technical feasibility of circular applications (2nd life PV, battery storage) was proven. Service models for PV and battery storage were in some demonstrators successfully implemented. It was shown that a market for service models exists, as well as for second-life PV and storage. New business opportunities were identified.
WP5 (Exploitation, dissemination and communication):
- Guide for policy makers;
- MOOC for business and academia.
Exploitation:
- A business innovation methodology guide was developed.
- The policy guide served as a basis for an online workshop in September 2022 and was presented at the European Parliament during a Working Breakfast on 15 November 2022.
- CIRCUSOL project partners SunCrafter, BKW, Futech and Ecopower developed business plans for a wider roll-out of demonstrator results. Also Luxchemtech and Solitek developed business plans for further market exploitation. Luxchemtech’s business plan envisions the operation of a recycling plant for PV waste in Germany. Solitek focuses on the establishment of a regional reuse centre for PV modules in North-Eastern Europe.
- In the international standardization committee for PV (IEC TC82), a standardized assessment procedure for 2nd life PV will be further developed.
- In the batteries standardization committee (IEC TC21), standards for 2nd life stationary batteries will be further developed.
- Teaching materials were developed for a Massive Open Online Course (MOOC) on Circular Economy and Sustainable Materials Management, hosted by Lund University. This course is already online since 2018. Approximately 50.000 participants have enrolled - https://www.coursera.org/learn/circular-economy)
- Four videos were produced for dissemination via youtube.
- Eight scientific papers were published in the cours of the project; four are under preparation.
The CIRCUSOL results contributed to our ambitions to generate impact in the environmental, economic and social sphere:
- Environmental: increase resource efficiency throughout the value chain, accelerate the transition towards clean, renewable energy for all, reduce energy consumption and GHG emissions;
- Economics: create new business opportunities, create local employment, increase European enterprise competitiveness by developing circularity as a differentiating strategy;
- Social: increase public acceptance of second-life products, promote societal awareness in circular economy and participation in circular innovation.
- Environmental: increase resource efficiency throughout the value chain, accelerate the transition towards clean, renewable energy for all, reduce energy consumption and GHG emissions;
- Economics: create new business opportunities, create local employment, increase European enterprise competitiveness by developing circularity as a differentiating strategy;
- Social: increase public acceptance of second-life products, promote societal awareness in circular economy and participation in circular innovation.