EU signs solar supply chain charter to address manufacturing crisis
The European Commission has approved a plan to assist the photovoltaic sector within the bloc during what it terms a “crisis” in the manufacturing industry. This plan includes measures such as government procurement of locally produced PV products. This move aligns with global trends, with countries like Australia also implementing strategies to boost domestic solar manufacturing capabilities in response to China’s dominance in the solar supply chain.
Australia recently announced a substantial $1 billion in subsidies and grants to establish a solar supply chain within the country. Meanwhile, in Europe, remaining solar manufacturers have been struggling to compete with the influx of inexpensive Chinese panels. Some companies have warned of potential closures or relocations to more favourable markets.
Despite efforts by the EU to support the solar manufacturing sector in recent years, the European Commission emphasised the need for immediate action to address the ongoing crisis in the industry. The signing of the European Solar Charter aims to outline specific steps to be taken by the Commission, EU Member States, and stakeholders in the PV value chain, focusing on wholesale, distribution, and manufacturing sectors.
Key Initiatives Outlined in the Charter
The primary objective of the Charter is to ensure a steady supply of high-quality sustainable solar products in Europe. This involves leveraging renewable energy auctions, public procurement, and other support schemes with stringent non-price criteria, including resilience, sustainability, delivery capability, and cybersecurity.
Furthermore, the Charter advocates for the promotion of innovative solar solutions such as agri-PV, floating solar, and various integrated PV systems. Special attention is given to novel business models like turnkey projects for PV integration in buildings, aiming to drive adoption of these technologies.
Additionally, the Charter calls for the establishment of favourable conditions for manufacturing facilities and investors, along with maximising EU funding opportunities to bolster the solar energy supply chain.
Industry Response and Ongoing Challenges
Despite these efforts, some European solar companies continue to face significant challenges. Swiss-based solar panel manufacturer Meyer Burger recently closed its plant in Freiberg, Germany, opting to relocate production to the United States. This decision underscores the intense competition and market pressures faced by European manufacturers.
The European Commission’s proactive approach through the European Solar Charter signals a commitment to revitalising the region’s solar manufacturing industry. By fostering innovation, promoting sustainability, and enhancing support mechanisms, the EU aims to strengthen its position in the global solar market.
