Cheap Chinese products monopolize the European green energy market, and the local solar industry is dying

EU and China
China-EU Summit

Europeangreen energyThe transformation is caught in a dilemma. A large influx of cheap solar panels from mainland China has facilitated the large-scale construction of solar facilities. However, this wave has dealt a heavy blow to Europe's own solar panel manufacturers. According to the data, although Europe has achieved 40% growth in the installation of solar facilities, most of the solar panels and accessories used in construction come from China, accounting for 95%.

According to comprehensive media reports, Europe made great gains in green energy last year. The solar power generation capacity installed in EU countries broke the record, 4% more than the previous year. According to the International Energy Agency (IEA), most of these solar panels and parts come from mainland China.

Local European solar manufacturers have been hit by low-priced imports and oversupply, and news of production line closures has spread one after another. Local industries have warned that half of production capacity may be shut down within weeks if the government does not intervene.

Policymakers are working hard to deal with this problem, but they are divided on how to deal with it. German Economy Minister Robert Habeck sent a letter to the European Commission (EU Commission) in November last year, regarding the EU Commission’s desire to deal with it. Expressing concerns over trade restrictions on Chinese-made solar equipment

"I have heard that the Commission may intend to impose protective measures on photovoltaic modules from mainland China. I have great concerns about this," the letter reads.

Haberk warned that restricting Chinese imports could end the rapid expansion of green energy in Europe and make 90% of the photovoltaic module market more expensive. He said this could lead to the bankruptcy of EU companies that use imported components to assemble and install solar panels. A spokesman for the German Economy Ministry declined to comment on the letter.

Electricity Company of Portugal (EDP) also believes that it is not appropriate to reduce its dependence on China in the short term, otherwise it will be difficult to build relevant plans.

Spain has not ruled out imposing import duties on solar panel materials. A Dutch official said that the authorities hope to include photovoltaic imports within the scope of the EU's "carbon border tax". Italy announced last week that it would invest 9000 million euros in a photovoltaic panel factory in Sicily.

EU Financial Services Commissioner Mairead McGuinness pointed out on Monday (February 2) that the EU has relevant measures in progress, including legislation to be finalized on the 5th, to make local manufacturing licenses more reliable. Quickly obtain it and give solar panels and other products produced in the EU an advantage in future green energy technology-related bids.

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