EU signs charter to build solar supply chain, address manufacturing “crisis”

The European Commission has signed off on a plan to support the bloc’s photovoltaic sector through what it describes as a “crisis” in the manufacturing industry, setting out a series of supports that include government procurement of locally made PV products.

The move comes as governments around the world, including in Australia, roll out policies to build domestic solar manufacturing capacity against the backdrop of a global solar supply chain almost completely dominated by China.

Just last month, Australia’s federal government pledged $1 billion in production subsidies and grants to build a solar supply chain on Australian soil in a major pre-budget announcement.

In Europe, those solar manufacturers that remain on the continent have issued regular warnings that they cannot compete with the flood of cheap Chinese panels, and will have to close up shop or move to more favourable markets.

But this week’s signing of the European Solar Charter comes too late for one of them, with Swiss-based solar panel maker Meyer Burger closing a plant in Freiberg in eastern Germany in mid-March to send production to the United States.

In a statement on Tuesday, the European Commission said the EU has taken a number of initiatives over the past few years to strengthen its support of the solar manufacturing sector, which includes several globally competitive companies in several steps of the value chain.

“However, further urgent action is needed in the short term to address the crisis in the European manufacturing industry.”

The Charter sets out sets out immediate actions to be taken by the Commission, EU Member States and representatives of the PV value chain, in particular wholesale, distribution and manufacturing parts.

The uppermost priority is to promote “resilient supply” of high-quality sustainable solar products in Europe, including through renewable energy auctions, public procurement or other relevant support schemes that set “ambitious non-price criteria,” including resilience, sustainability, ‘ability to deliver” and cybersecurity.

The Charter also pushes for the promotion of innovative forms of solar, such as agri-PV, floating solar, infrastructure-integrated PV, vehicle-integrated PV or building-integrated PV with a specific focus on innovative business models such as turnkey projects for PV integration in buildings.

Another goal is to create “favourable framework conditions” for manufacturing facilities and investors and to consider the use of all available EU funding opportunities to support the solar energy supply chain.