Australia can become a global superpower in solar energy generation and export, but it must develop its own fully integrated domestic solar supply chains to do so, according to a new report by CSIRO.

The Australian Silicon Action Plan sets out the actions Australia needs to take to participate in a fully-fledged supply chain for silicon and solar cells – a critical step towards energy security and independence, which will also support economic growth and jobs across Australia’s regions and cities.

The Australian Government has identified silicon as a critical mineral, given its current supply chain risks and its importance to new economy technologies such as solar cells, semiconductors (chips), optical fibres, aluminium alloys, and its potential use in energy storage batteries. Silicon is abundant in Australia in the form of quartz, but it is the process of smelting quartz to silicon, then to high-purity silicon that requires attention.

“Australia already has the highest per capita deployment of rooftop solar in the world, and there are several mega-projects in the solar development pipeline,” CSIRO senior principal research scientist Dr Chris Vernon says.

“But one of the greatest risks to Australia’s solar ambitions and energy future is our reliance on overseas supply chains for solar cell technology.”

According to the report, increasing the production of silicon in Australia is the first step for Australia to develop its own capability and capacity in the solar cell supply chain.

“Energy independence should be a top priority for Australia. The increasing pace of the energy transition and ever-increasing international demand for solar, combined with an ever-present focus on ESG issues, highlights the fragility of our current supply chains, and makes the pursuit of energy independence all the more important,” Chris adds.

Between 2021 and 2050, solar’s contribution to the energy mix in Australia is expected to increase from 12% to approximately 50%, while according to the International Renewable Energy Agency, estimated annual global solar power generation capacity must increase more than five-fold by 2030, and 14-fold by 2050 to stay on track for net-zero targets.

To keep pace with these solar capacity forecasts, annual global production of silicon and its purified form – polysilicon – will have to materially increase.

But despite our reliance on solar generation set to grow, current supply chain dynamics pose an energy security risk for Australia. Geopolitical tensions, natural disasters, climate change, energy market issues and COVID-19 have highlighted the fragility of our current supply chains.

Around 70% of silicon is produced in China, while China also dominates the production of polysilicon. The conversion of polysilicon to solar cells is even more concentrated, with China accounting for between 75% and 97% of these stages of production.

“Australia has enormous potential when it comes to supplying solar power for its own and also the region’s energy needs, but our current reliance on concentrated silicon and solar cell supply chains poses risks to Australia’s energy independence,” Chris explains.

“The Australian Silicon Action Plan suggests a pathway for the creation of an industry that has the potential to provide employment and reskilling opportunities, the delivery of significant economic benefits that come from adding value to Australia’s mineral endowment, development of new industries in regional Australia with the world’s best ESG standards, all while improving Australia’s energy security and independence.”