The conventional perception of the Arctic region has been that the long, dark winters render solar PV almost useless, making wind power the go-to solution for energy experts. However, research on seasonal complementarity in Finland shows that this perception overlooks a crucial aspect: the flip side of long winters is an equally long summer with long daylight. It is a fact that everyone acknowledges in theory but often disregards in practice.
The highest solar PV yield per installed capacity for a single day has been recorded in Antarctica, where the sun remains above the horizon for 24 hours during the summer solstice. The ground reflection because of snow and the cold environment further boost the yield. This phenomenon highlights the potential for solar PV in polar regions.
Exploring the solar PV potential in the Arctic region reveals PV can play a surprisingly significant role. Another study on the energy transition in Finnish Lapland shows that gigawatts of solar PV can be crucial during the summer months when wind power is at its lowest. This could aid Lapland in becoming an e-fuels export hub, revolutionizing the region’s energy landscape.
But Lapland is not an isolated case. Research on the potential of Greenland, and the Shetland Islands to become e-fuel export hubs based on their vast wind resources demonstrates solar PV can contribute meaningfully to the energy balance during the summer months. The study on Greenland shows that solar PV contributes over 10% of annual electricity, helping to run e-fuel synthesis units in summer months. Even Iceland, with its abundant geothermal and wind energy, can benefit from the summer boost provided by solar PV. Similar findings are reported for the entire Nordic-Baltic region, which will be mostly powered by wind power while solar PV is an indispensable energy resource.
A recent publication on the prospects of solar PV in the Arctic and sub-Arctic region investigates how different solar PV technology portfolios perform across the Arctic, combining high-resolution modeling with a detailed cost analysis. The findings reveal that horizontal single-axis tracking (HSAT) solar PV systems can deliver between 770 and 2170 full load hours per year, depending on location. Interestingly, simpler designs perform nearly as well. East-west oriented vertical bifacial (EW vertical) solar PV systems typically generate only 0-13% less electricity than HSAT. In some extreme northern locations, they can even match tracking systems. As an example, in Nunat, Greenland (77.4°N 67.9°W) they generate equal annual output.
The study also shows clear economic advantages. Compared to a reference mix of technologies (40% fixed-tilt, 50% HSAT and 10% EW vertical), switching to a fully EW vertical portfolio reduces the levelized cost of electricity by 1.4-14% in high Arctics. Complex tracking is not always necessary to achieve favorable generation patterns in the North. By combining EW vertical with optimally fixed-tilt solar PV systems, it is possible to closely replicate the daily production profile of HSAT. For instance, a 50/50 mix of those two configurations reaches a high correlation with HSAT generation patterns for sub-Arctics.
Levelized cost of electricity (LCOE) for the reference technology portfolio (reference) and relative change in LCOE for fixed-tilt, single-axis tracking (HSAT), and East-West vertical (EW Vert) setups). Image: LUT University.
These findings have important implications for the energy system design. Simpler, non‑tracking PV solutions can ease deployment in remote Arctic regions while maintaining strong performance. Such flexible configurations can support national energy transitions, including emerging integrated PV approaches such as agrivoltaics and the electrification of transport corridors. This highlights how well‑designed solar PV portfolios can enable more integrated, resilient, and cost‑effective clean energy pathways in high‑latitude regions. Similar results have been found for Alaska and the very north of Canada, where inter-regional grids are less present, and more local micro-grids form the electricity supply of the population.
Especially vertical solar PV should be considered in more detail. Not only is it possible to harvest the midnight sun more effectively, but in combination with agriculture, vertical solar PV offers various side-benefits. Vertical solar PV can act as a wind shelter, which can be important for sensitive crops, and their electricity generation profile better matches the demand. Furthermore, vertical solar PV systems are less prone to snow cover.
Another northern region rarely discussed in solar PV conversations is Iceland, the country with the northernmost capital city. Iceland is known for its large aluminium industry powered by hydropower and geothermal energy. Industry opportunities also exist for novel areas, such as carbon dioxide removal (CDR). Research on the CDR service opportunities of Iceland as a new industry sector reveals a large potential; however, not without side-effects. The new industry sector would add significant amounts of baseload energy demand, while the sustainable potential of conventional renewables is almost fully utilized.
Fortunately, Iceland is blessed with an abundance of renewable energy sources. The first that comes to mind is wind power. In the North Atlantic, Iceland shows similarly good wind yields as the north of Great Britain or the south of Greenland. Furthermore, wave power could play an important role, as Iceland might be one of the few examples where wave power outcompetes offshore wind power. Over a wide range of scenarios, solar PV always plays a crucial role.
Even when the energy demand of the CDR sector is considered becoming more flexible to follow the availability of renewable energy sources, solar PV is always needed to cover for the significant seasonality of wind power and wave power. With heat demand even during the summer, solar PV becomes the backbone of a stable energy system year-round.
Depending on scenarios the share of solar PV to the annual electricity generation in 2050 can reach up to 7% for Lapland, 9% for Greenland, 17% for Iceland, 1% for the Shetland Islands, 30% for Alaska, and 33% for the very North of Canada. A recent study for the Nordic-Baltic region found a solar PV share in electricity generation of 17-22% and 44-54% in installed capacity. A recent global review study on the share of solar PV in electricity generation by 2050 finds decent shares around 10-20% across the entire Arctic and sub-Arctic regions in the northern hemisphere.
The answer behind the value of solar PV in regions far from the equator lies in its remarkably low capital and operational expenditures, which are expected to continue declining. Not only utility-scale PV plants but also prosumer PV systems are becoming attractive in Arctic regions. In cost minimization studies, solar PV consistently emerges as a key player, even in regions with the longest and darkest winters. This serves as a reminder that even in regions with the lowest solar yield, the reduction in full load hours is only twofold compared to the regions with the highest yield. This means that solar PV can still deliver a significant amount of energy, even in the most challenging conditions.
As the energy landscape continues to evolve, it’s time to rethink the assumptions about solar PV in the Arctic and Northern regions. The research is clear: solar PV is a vital component of a cost-optimized energy system, independent of the location.
Authors: Rasul Satymov, Geethike V. Arachchi, Dominik Keiner, and Christian Breyer
This article is part of a monthly column by LUT University.
Research at LUT University encompasses various analyses related to power, heat, transport, industry, desalination, and carbon dioxide removal options. Power-to-X research is a core topic at the university, integrated into the focus areas of Planetary Resources, Business and Society, Digital Revolution, and Energy Transition. Solar energy plays a key role in all research aspects.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: [email protected].
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