Companies warn of oversupply
Is the EU Commission helping the solar industry?
January 27, 2024, 10:02 p.m
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The calls from the solar industry in Europe are loud: there is no response to the dumping prices from China. Recently, the manufacturer Meyer Burger threatened to emigrate and demanded government support. Now the EU Commission is considering helping the stumbling industry.
According to a media report, the EU Commission is thinking about supporting the European solar module industry. The reason is a flood of cheap imports from China that are threatening domestic production, reports the Financial Times, citing EU representatives.
The European Commission’s actions could include an anti-dumping investigation into China, which could lead to punitive tariffs. Incentives for national governments are also possible to keep factories running. The European solar power industry is warning of an oversupply of cheap Chinese imports. According to the association, some manufacturers are on the verge of bankruptcy due to cheaper goods from China.
At the “Handelsblatt” energy summit last week, Federal Economics Minister Robert Habeck once again pointed out the problem. “We are well advised, also for reasons of resilience, that we now keep some of the manufacturing knowledge in Germany and Europe.”
Currently 90 percent of solar installations come from China. Of the remaining ten percent, part comes from Europe and a small part from Germany. There is discussion about how this can be maintained. When asked whether there would still be a solar industry in Germany in five years, Habeck answered “yes”.
Meyer Burger boss calls for government support
The solar company Meyer Burger threatened to close its solar module production in Germany last week, citing competition, especially from China. Habeck said that his ministry was in intensive, daily contact with Meyer Burger and other solar manufacturers.
According to its own information, the Swiss manufacturer expects a loss in operating profit of “at least” 134 million euros for 2023. It cited a “sharp increase in Chinese manufacturing overcapacity and trade restrictions imposed by India and the US.” This led to “significant oversupply and unprecedented distortions in the European solar market” in 2023. Meyer Burger boss Gunter Erfurt has repeatedly called for government support in Berlin in recent months.