BRUSSELS, Jan 30 (Reuters) – Europe’s solar panel manufacturing sector is sounding an alarm, calling on the European Union to implement emergency measures to prevent the closure of local firms due to intense price pressure from Chinese imports, according to a letter obtained by Reuters.
Several European solar manufacturers have recently disclosed plans to shutter factories, attributing their decisions to the deluge of imports and an oversupply of solar panel components accumulating in European warehouses, resulting in a downward spiral of prices.
In a letter addressed to European Commission President Ursula von der Leyen, the European Solar Manufacturing Council (ESMC), an industry group, cautioned that without swift assistance, the EU could witness the shutdown of over half of its operational solar photovoltaic module manufacturing capacity in a matter of weeks.
Dated Jan. 30, the letter outlined the urgent need for substantial emergency measures within the next 4–8 weeks. The ESMC specifically requested the EU to initiate emergency actions, including a program to purchase surplus inventories of EU solar modules, aimed at alleviating the oversupply issue. Additionally, the industry group proposed modifications to state aid rules, enhancing government support for local solar producers.
Should these measures face delays, the letter suggested the consideration of “safeguard” measures, potentially involving tariffs and quotas, to counter the surge in Chinese imports.
While Europe has experienced significant growth in solar energy, installing a record 56 GW of new capacity last year, the rapid expansion relies heavily on imported components from China. This dependency has sparked concerns within certain industry groups opposing tariffs, fearing potential disruptions to the supply chain from China and potential setbacks in the advancement of green energy.
Amidst this backdrop, Swiss company Meyer Burger (MBTN.S) recently announced plans to close its unprofitable production plant in Germany unless promised government funding is delivered.