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Europe is installing more solar panels than ever before, thanks to an influx of cheap Chinese-made solar panels, with installations up 40% last year. But it comes at a huge cost. Local solar manufacturers are on the brink of complete collapse, which could happen within weeks.
What measures should the European Union take as around 95% of solar panels and components used within the EU come from China, according to data from the International Energy Agency, Reuters reports The company is said to be considering whether to do so.
Can we reap the benefits of green energy with containers full of Chinese-made solar panels while crushing the domestic sector and putting people out of business?
“The situation is really, really, really troubling,” said Johan Lindahl, director general of the European Solar Manufacturing Council (ESMC). politiko.
Local solar panel manufacturers in Europe are in crisis, saying they are unable to compete with cheap imports and oversupply. Reuters reported last year that companies had shut down and a “surplus” of Chinese-made panels were sitting in warehouses across Europe. The industry has warned that half of its production capacity could be shut down within weeks unless the government takes drastic action, which could mean tariffs.
But not everyone is happy about it. German Economy Minister Robert Habeck said in a letter to the EU that tariffs on Chinese imports could end Europe’s impressive expansion of green energy and make 90% of the solar power market more expensive. Stated.
“I have heard that the Commission may impose safeguard measures on imports of photovoltaic (PV) modules from China. I have very strong concerns about this,” according to Reuters ‘, the letter said.
Habeck added that the move would similarly put European companies that assemble and install solar panels using Chinese-made components at risk.
This was all a bitter pill to swallow for France, which has high hopes for Europe’s green energy re-industrialization. Germany’s support for solar power is in jeopardy due to the financial crisis, while Spain has not ruled out tariffs on solar panel imports. A Dutch government official told Reuters that the country “wants to finance its solar imports with the EU’s carbon border tax.”
Italy also recently announced that it will invest 90 million euros in a solar panel factory in Sicily.
EU measures under consideration include legislation to speed up permits for local manufacturers and give EU products an advantage in “future clean technology tenders”.
Electrek’s view
Trade restrictions are not a minor issue, especially as the EU aims to build over 320 GW of new solar power by 2025 and over 600 GW by 2030. is likely to be necessary.
Back in September, the EU launched an investigation into China’s EV industry, as European companies struggle to compete with cheap, high-tech Chinese EVs made with low-cost labor entering the EU. It’s for a reason. EU investigates Beijing’s unfair subsidies and bank lending campaign that fueled China’s massive growth amid concerns that China is building EV factories far beyond what is needed for domestic demand We are promoting. On the other hand, the United States and Europe are tightening regulations on Chinese-made automobile and EV parts sold in their countries, and with tariffs so high in the United States, China is focusing on other regions, namely South America, Asia, and Europe. ing.
Meanwhile, some European panel manufacturers claim that China is doing the same with solar panels. Gunther Erfurt, CEO of Swiss solar power manufacturer Mayer Berger, told Reuters: “China’s solar power industry has been strategically supported by hundreds of billions of dollars in subsidies for years. I have received money,” he said.
Europe is currently unable to compete, and at least needs more time to catch up.
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