Europe's Solar Panel Manufacturers Urge EU for Emergency Support

According to a letter obtained by Reuters, several European solar manufacturers have already announced their plans to shut down factories, attributing it to the influx of imports and an excess supply of solar panel parts in European warehouses, which has led to a decline in prices.

The European Solar Manufacturing Council (ESMC), an industry group, has sent a letter to Ursula von der Leyen, the President of the European Commission, cautioning that without swift assistance, the EU could lose more than half of its operational solar photovoltaic module manufacturing capacity within a matter of weeks.

ESMC assumes the crucial role of representing the European PV manufacturing industry, advocating for its interests and propelling its growth. By fostering a conducive political environment, ESMC ensures the support and advancement of industrial manufacturing and research in solar energy, positioning Europe at the forefront globally.

Additionally, ESMC actively encourages the development and investment in solar technology across the entire value chain, encompassing materials, wafers, modules, inverters, and other electronic components.

The letter, dated January 30, said that, Unless significant emergency measures are promptly implemented, major EU PV module producers and their European suppliers are on the verge of halting their manufacturing lines over the next 4-8 weeks.

ESMC has requested the European Union (EU) to implement urgent actions, which involve initiating a program to purchase surplus stocks of EU solar modules in order to alleviate the issue of oversupply. Additionally, they have proposed modifying state aid regulations to enhance government assistance for domestic solar producers.

In the event that these measures cannot be implemented swiftly, the EU should also contemplate implementing "safeguard" measures, such as tariffs and quotas, to address the sudden influx of imports. This suggestion was conveyed in a letter.

It is noteworthy that Europe has been experiencing a rapid expansion in solar energy, with a remarkable installation of 56 GW of new capacity in the previous year.