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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

Fighting back as Chinese imports push EU solar industry to brink of collapse

14/2/2024

10 min read

Feature

Aerial overview of large building with roof covered in solar panels Photo: Ank Kumar
Europe is a major market for solar energy producers – pictured here is Trademart Brussels, a business-to-business wholesale trade centre in Brussels, whose roof is covered by photovoltaic modules

Photo: Ank Kumar

The European Union’s (EU) solar panel manufacturing industry is under intense pressure from a glut of cheap Chinese imports. It is calling for urgent action to prop up the domestic EU supply chain to prevent bankruptcies and relocation of solar panel makers to south-east Asia and the US. Sara Lewis reports from Brussels.

The EU is 97% dependent on solar panel imports, mainly from China, according to Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and Capital Markets Union, in a statement in early February to the European Parliament on the ‘state of the EU solar industry in light of unfair competition’.

 

‘Global oversupply and a surge of imports into the EU has put under strong pressure [European] solar supply chains,’ said McGuiness. For buyers and consumers, however, this is good news – given that solar panel prices have plummeted by over 40%.

 

However, McGuinness stressed that the EU was not giving up on developing European solar panel manufacturing, highlighting support programmes for the solar industry, notably via its EU solar energy strategy (May 2022), which targets more than 320 GW of installed solar photovoltaics (PV) by 2025 and almost 600 GW by 2030. While imports are key here, the strategy includes a private-public EU skills partnership to train and upskill workers in manufacturing as well as installation management. It also includes the EU Solar PV Industry Alliance which is aiming for 30 GW of annual European solar PV manufacturing capacity by 2025.

 

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