Meyer Burger's decision to abandon its German operations in favor of a move to the United States has once again set off alarm bells among PV module manufacturers still clinging to a development in Europe. However, this week the European Solar Manufacturing Council (ESMC) warned that most other European PV manufacturers are holding similar discussions behind closed doors. 1q231b

According to the ESMC, several of its  are competing against heavily subsidized foreign PV module manufacturing ? that currently offers modules on the European market at prices below profitability even for these subsidised actors ? creating an uneven playing field that ultimately leads to closures and bankruptcies of European companies.

"What we have witnessed in recent months is just the beginning of what we fear could become a wave of shutdowns in PV manufacturing operations, turning off the light of the European PV industry’s renaissance," said the ESMC.

In 2023, the EU’s estimated PV module production capacities stood at 11 GW on paper, but only about half of that capacity is estimated to be operational. Approximately only 2 GW of modules was produced by European PV module manufacturers during 2023 because of the unfavourable and unsustainable low module prices, and ~1 GW is currently held in the inventories.

The Association points out that these stocks remain unsold due to prevailing market conditions of ultra-low pricing, expected to persist throughout at least 2024. "The closure of PV module manufacturers is also closing possibilities to develop other parts of the PV value chain and European material and component manufacturers are thus also at very high risk," the ESMC added.

Call to the EU

With this scenario on the table, ESMC notes that the European Commission is aware of the situation, understands the underlying reasons and the difficult situation facing our . And while the association applauds the efforts made over the past year to promote legislation such as the Net-Zero Industry Act (NZIA), the EcoDesign Regulation and the Forced Labor Regulation, it asserts that these are not helpful solutions at this time. 

Furthermore, that the legislative work schedules required by these regulations imply their implementation in 2 to 3 years. By then, the Association explains it will be too late and a significant part of the remaining industry will have been irreversibly lost and, with it, also important know-how and labor competence. "Unfortunately, in 2023 and 2024 we have not seen any concrete emergency corrective action," ESMC argues.

There is a benchmark for manufacturing capacity for strategic net-zero emissions technologies to meet at least 40% of the EU's annual deployment needs by 2030. And, according to the Association, if nothing is done now, there will be no industry to count on by 2030.

"Losing nearly all European PV module producers right now would have irreversible negative consequences for the entire EU PV manufacturing industry. The European Commission in 2023 adopted Temporary Crisis and Transition Framework (TCTF) and several Member States already planned REPowerEU financing for the PV manufacturing industry in the EU, while the Net-Zero Industry Act and Forced Labour Regulation are in the legislative pipeline. All these incentives will be useless in case the emergency measures would not be taken by the middle of February at the latest," said Zygimantas Vaiciunas, ESMC Policy Director.