The European Union (EU) is considering emergency support measures for Europe’s solar panel industry threatened by a flood of cheap Chinese imports, as reported by the Financial Times on January 27. The measures may include an anti-dumping investigation against China, which may lead to punitive tariffs, and other options such as offering incentives to national governments to keep plants going. These measures intend to shore up the EU’s ailing solar panel manufacturing industry. Over the past few weeks, five European factories have shut down or announced plans to do so amid the intensifying Chinese competition. Furthermore, the European Solar Manufacturing Council warned that the bulk of Europe’s manufacturers could be shut within months if no emergency actions are taken.

Chinese firms produce over three-quarters of the world’s solar panels and more than 90% of the silicon wafers. Moreover, Henning Rath, chief supply chain officer at German solar installer Enpal, also acknowledged that Chinese manufacturers are now the most competitive not only on price but also on quality. China’s dominance in the global solar supply chain has squeezed the profit space of EU manufacturers, particularly after the trade restrictions imposed by India and the US on China resulted in a significant oversupply of Chinese goods in the European market. However, the EU also worries that implementing trade measures could impede supply and hold up planned solar projects, given that Europe produces fewer than 3% of the solar panels needed to achieve the bloc’s 2030 solar power targets.

Sources:

https://www.ft.com/content/39af71b4-36dc-4bb9-a181-3710fdfb7ac2

https://www.chinadaily.com.cn/a/202401/29/WS65b79392a3104efcbdae88a2.html

https://www.pv-tech.org/bsw-launches-proposal-to-revive-eu-solar-manufacturing-chain/