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European Solar Energy Association: Four measures to protect the local photovoltaic industry

Time: November 01, 2023

Several European solar associations have published an open letter calling on the EU to develop an industry strategy for the European solar photovoltaic industry and oppose the introduction of tariffs and trade barriers.

To address the sharp decline in solar PV module prices in Europe, the signatories to the open letter propose four approaches that can be implemented in the short term. First, the signatories ask EU member states and representatives to call on the European Commission to further adjust the EU state aid framework to allow member states to support the operating expenses of factories.

Secondly, the signatories demand that the EU quickly adopts the EU Net Zero Law and establishes a concrete flexible tendering system in consumer markets in the coming months. If this is done, Article 20 of the Net Zero Sector Act should be adapted to allow member states to hold a limited number of specific tenders of growing capacity to reflect Europe’s growing capacity needs.

The signatories added that any pre-qualification criteria for solar PV must be avoided, which could adversely affect the speed and cost-effectiveness of Europe's energy transition and solar development.

Furthermore, the signatories ask EU Member States and representatives to call on the European Commission to develop an EU-wide financial support framework specifically for the solar PV supply chain, building on the state aid framework. This framework could be linked to innovation funds and existing national support funds, mechanisms or instruments.

Finally, the signatories call on the EU to use resilience and recovery funds wherever possible to support solar PV production.

In August this year, Norwegian Crystals, a silicon ingot manufacturer, filed for bankruptcy. NorSun, also a Norwegian solar silicon ingot producer, also announced that due to the influx of "unusually low-priced" Chinese solar modules in September, the company decided to temporarily suspend production and lay off employees.

In addition to calling on the EU to develop measures for the solar industry, the signatories also oppose tariffs and market barriers that could jeopardize Europe's growing PV market and existing PV ecosystem.

"It would also jeopardize political development goals and deny consumers the economies of scale that make solar PV most attractive for decentralized consumer markets and electricity market supplies," the signatories wrote. one of the energy generation technologies. We ask member states and representatives to reject such proposals.”

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