Chinese competition poses ‘existential threat’ to Europe’s solar industry

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Europe’s solar industry faces an ‘existential threat’ and unless action will be taken soonit could collapse within a few months.

Industry groups are calling on the European Commission to introduce emergency measures, including: Preparation Invest in solar panels to ensure liquidity.

They blame the crisis on the influx of Chinese-made solar panels onto the EU market, with prices artificially lowered through generous state aid. The Chinese government has a near-monopoly in this sector, according to the industry, and “China has been subsidizing its industry for more than a decade,” said Johann, director general of the European Solar Manufacturing Council (ESMC). Lindahl says.

“They decided more than 15 years ago to consider photovoltaic (PV) as a strategic technology. They have done similar things in other areas such as electric vehicles and batteries,” added Lindahl. Ta.

Low prices have discouraged companies such as Switzerland’s Meyer Berger, once Germany’s largest solar power producer. relocateExport to the US and benefit from Joe Biden’s anti-inflation bill. Other companies such as Solarwatt was fired Reduce personnel to reduce production costs.

Innovation is the key

Solar modules produced in China are approximately 50% cheaper than its European equivalent. Still, experts say the quality is the same. Therefore, if the industry is to survive, it has no choice but to innovate.

Solarge, a Dutch factory, produces solar panels that are lighter than traditional ones and can be installed on roofs that can’t bear much weight.

But even with growth strategies in place, this situation may become unsustainable, says Gerard de Leede, CTO and co-founder of Solarge. “Over a period of one or two years, many companies and of course us will definitely be affected,” he told Euronews. “We would have to lower prices, which would make us less competitive and less profitable.”

Currently, solar panels manufactured in Europe account for only 3% of the market. However, SolarPower Europe believes that this proportion could rise to 40% by 2030.

China’s influence not only puts companies at risk but also impedes the bloc’s industrial autonomy. The EU is close to approving a net-zero industry law to cut red tape and expand domestic production of renewable systems such as solar panels, wind turbines and batteries. The law was hastily developed in response to the Inflation Control Act, but unlike the U.S. initiative, it does not envisage tax credits or rebates.

Another regulation aims to ban the sale of products made with forced labor in the EU, which would result in a ban on many products made in parts of China.

Collision with climate goals

China’s aim to compete with low-cost solar panels could soon clash with long-term climate targets introduced by the bloc, which would require large-scale deployment of renewable systems to phase out fossil fuels completely. be.

Speaking in the European Parliament in early February, Mairead McGuinness, European Commissioner for Financial Services, dampened industry expectations for tariffs on cheap imports, saying: “Any potential measures are in line with the goals we have set for the energy transition.” We need to do a comparative study.”

“It is important that the European solar power market continues to grow,” said Dries Akke, policy director at SolarPower Europe. However, he cautions that “manufacturers’ industrial strategies need to ensure that they do not have a negative impact on the continued growth of the European solar market.”

This balance is essential for the EU. Solar energy is one of the cheapest and easiest forms of energy to install; Rapid deployment You can make a difference in achieving climate goals. By 2030, 42.5% EU-wide energy Must be sourced from renewable sources.