Two of the foremost European solar trade associations, the European Solar Manufacturing Council (ESMC) and SolarPower Europe (SPE), have issued a resounding call to action directed at EU policymakers. The crux of their message revolves around the urgent necessity for increased support to bolster European solar manufacturing. Against the backdrop of a solar industry facing existential threats, the associations have underscored the critical juncture at which the sector finds itself. This plea for assistance arrives ahead of a pivotal solar PV ministerial meeting scheduled for 30 September 2025.
Amidst a landscape characterized by a stagnation in solar deployment – a phenomenon projected to culminate in 2025 marking the first year in over a decade where solar PV additions will witness a decline – the European solar industry is confronted with a stark reality. The CEOs of SolarPower Europe and the European Solar Manufacturing Council, Walburga Hemetsberger and Christoph Podewils respectively, have articulated the industry’s precarious position. The industry’s fate hangs precariously in the balance, with the looming specter of losing the remaining vestiges of European solar manufacturing.
The European Solar PV Industry Alliance (ESIA), established in 2022 with the explicit mission of catalyzing investments in EU solar manufacturing and attaining the 30GW solar manufacturing capacity target by 2025, has fallen short of its objectives. A litany of closures within the industry since 2023 serves as a poignant reminder of the challenges faced. REC Group, NorSun, and Meyer Burger are emblematic of this trend, shuttering operations and facilities over the past few years. The need for concerted action to avert a further erosion of the solar manufacturing landscape is palpable.
Strategic Measures for European Solar Manufacturing Support
The joint missive from ESMC and SPE enumerates five pivotal measures that demand the attention of EU policymakers. These measures, if implemented effectively, hold the promise of revitalizing and fortifying the European solar manufacturing ecosystem.
- Action Plan for European Solar Industry: A comprehensive action plan, underpinned by political commitment and a strategic roadmap, is crucial to rejuvenate domestic solar manufacturing capabilities across the value chain.
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Revision of Public Procurement Legislation: Going beyond the confines of the NZIA, the revision of public procurement laws should incentivize and reward resilience, cybersecurity, and European content in a bid to bolster the solar manufacturing sector.
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Creation of a Cleantech Manufacturing Fund: A dedicated fund under the upcoming Multiannual Financial Framework, specifically tailored to cleantech manufacturing, with provisions for solar manufacturing support encompassing both capex and opex.
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Expansion of Operational Expenditure Support: Building on previous calls for opex support, the industry advocates for mechanisms that bridge the gap between prevailing market prices and the manufacturing costs incurred by European manufacturers.
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Enhanced Role for the European Investment Bank (EIB): The involvement of the EIB is deemed imperative, with suggestions ranging from zero-interest loans to counter-guarantees aimed at fostering financial stability and instilling investor confidence in the solar manufacturing domain.
In conclusion, the urgency of the situation necessitates a proactive and concerted effort by EU policymakers to translate the lofty ambitions of the Net-Zero Industry Act into tangible outcomes for the European solar manufacturing sector. The time for action is now, with the industry’s survival contingent upon swift and decisive measures to safeguard its future. The fate of European solar manufacturing hangs in the balance, requiring a collaborative and strategic approach to navigate these turbulent waters and steer the industry towards a path of sustainable growth and resilience.
Key Takeaways:
– European solar industry at a critical juncture, facing existential threats
– Urgent need for EU policymakers to implement strategic measures to bolster solar manufacturing
– ESIA falls short of manufacturing capacity target, necessitating immediate action
– Five key measures proposed by ESMC and SPE to support European solar manufacturing
– Industry’s future hinges on swift and decisive action to secure strategic sovereignty and foster growth in solar manufacturing
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