(Montel) Record-low prices of solar imports are hitting the competitiveness of European solar manufacturers and could undermine the EU’s strategic energy independence plans, said industry lobby groups on Monday.
Plunging solar import prices threaten EU energy independence
“While price drops are typically welcome news, if unchecked they have serious repercussions for our open strategic autonomy,” said SolarPower Europe’s CEO, Walburga Hemetsberger.
“In the short term, this is already posing real challenges to domestic competitiveness and the rebirth of EU solar manufacturing.”
In a separate release, the European Solar Manufacturing Council said the European solar industry was “in utmost danger” as Chinese PV manufacturers were intentionally driving down prices, and risked disappearing forever if no immediate actions were taken.
“Over recent months, massive stockpiles of Chinese PV modules in European ports, equivalent to Europe's entire annual installation demand, have built up,” ESMC said.
Imports were projected to reach 120 GW in 2023, doubling expected installations of just over 60 GW, according to the council. As a result, it added, European PV module production has plummeted from 9 GW in 2022 to about 1 GW this year, with some manufacturers facing insolvency.
More bankruptcies?
“The manufacturers now face a choice: continue production shutdowns and face bankruptcy or seek refuge in regions like the US that support their PV industry,” it added.
The European solar industry saw a plunge in prices by more than 25% with module prices hitting a record low of less than EUR 0.15 per watt for low-cost products, falling below pre-Covid levels, said SolarPower.
This sharp decline has made it extremely challenging for European solar manufacturing companies to market their products, it added, citing the recent bankruptcy filing of Norwegian Crystals, one of the continent’s long-lasting ingot manufacturers.
“If we don’t respond rapidly and appropriately to this price crisis, we’re looking at another wave of bankruptcies, and a false start for EU's open strategic autonomy agenda,” Hemetsberger said.
A surge in global demand and the fierce competition between Chinese suppliers has spurred significant investments in solar PV supply chains leading to an oversupply, which quickly pressured prices for raw materials such as silicon, inverters and batteries, said SolarPower.
The situation has been further exacerbated by a temporary slowdown in the European solar market in Q3, tied to inflationary pressures and bottlenecks in grid connections and project permitting, it added.
Lobbies’ proposals
Among other things, SolarPower has urged in a letter to the European Commission to take decisive actions and proposed rapid solutions. These include an emergency acquisition of some European PV inventories, the establishment of an EU-wide solar manufacturing bank, a scaling up of green technologies and incentivising ways to boost demand for solar across the region.
ESMC also urged companies to exclude imports of any solar equipment produced with “forced labour” which are “being dumped in Europe,” and it encouraged European PV installers and project developers to incorporate a minimum share of European production for their PV deployments.
