European Solar Manufacturing Council (ESMC)

After the hearings in the European Parliament completed of the Commissioners-designate, we considers the expressed statements of the Commissioners-designate as a clear shift towards reshoring EU manufacturing capacities, including solar PV. ESMC appreciates emphasis of the members of the European Parliament on solar PV manufacturing issues including requests for actions. Solar PV manufacturing stands as the strategic essential for reclaiming and sustaining a significant share of production within the EU. ESMC supports the horizontal measures potentially to be applicable for all the EU cleantech industries and expects that the general policy commitments will translate into tangible, rapidly implementable proposals within the upcoming Clean Industrial Deal, new State aid framework and other industrial policies during the first months of the European Commission new mandate. We expects that the general policy objectives of the European Commissions to reshore industrial manufacturing to the EU will be supported by targeted, quick and impactful legislative and non-legislative measures for the solar PV manufacturing. You can find a more extensive analyse of the hearings, including ESMC several take-aways of the messages from some of the most relevant Commissioners for the PV manufacturing industry, here: https://lnkd.in/dWX-i4nw

Lithuanian Parliament have banned the remote access of companies from China to Lithuanian solar, wind and storage devices    Yesterday the Lithuanian Parliament adopted the law which introduced the Article 733 “Security Requirements for the Control Systems of Electricity Devices” to their legislation. The new legislation will address the risks associated with the remote controllability of PV inverters that we at European Solar Manufacturing Council (ESMC) have highlighted lately.   The law states that the electricity production and/or information management systems and their security in solar and wind power plants and energy storage devices with an installed capacity greater than 100 kW must be ensured so that entities from countries that pose a threat to the national security of the Republic of Lithuania, according to the National Security Strategy (China is included in that list), do not have access to these systems, allowing them to remotely manage the power change parameters of electricity production and/or energy storage devices and turn these devices on or off. Grid operators shall not connect electricity production and/or energy storage devices to the electricity grids if the security of their control systems does not meet these requirements. The adopted requirements will be applicable from the 1st May 2025 while the already installed/completed solar and wind power plants and energy storage facilities should accomplish the requirements by 1st May 2026 as the transitory phase will be necessary to change the respective information management systems. ESMC welcomes these important changes included into the law. We are expecting and looking forward for such kind of decision to be replicated in the other EU Member States. The application of NZIA resilience criterion to all solar and wind power plants and storage devices irrespective of the installed power capacities is a good opportunity to prevent our information management systems from the remote controllability risks.

Is Europe’s energy independence at risk? Excited to announce our debate article published in Euractiv, where we challenge the prevailing views on European solar manufacturing.' Mario Draghi recently presented The Future of European Competitiveness report to the European Parliament, suggesting that attempting to build solar manufacturing in Europe could slow down decarbonization. However, we argue that Europe’s solar manufacturing sector is vital for three reasons: 1. Strategic Resilience: Events like COVID-19 and the Ukraine conflict exposed Europe’s vulnerabilities in relying on global supply chains, especially when they’re controlled by authoritarian regimes. Energy security demands that we reduce our dependence on imported technology. 2. Economic Reality Check: The dramatic drop China’s solar panel prices since mid 2023 aren’t driven by sudden efficiencies; rather, they reflect a state-backed strategy to stabilize its economy and counterbalance the ongoing real estate crisis. This approach has led to massive overcapacity and a resulting price collapse, with PV panels now selling below manufacturing costs. If Europe relinquishes its own production capabilities for short term economic gain and this potential net-zero technology price bubble bursts, it could put Europe’s energy transition at serious risk. 3. Infrastructure Security Concerns: The update of software in Chinese-manufactured inverters installed in Europe are under Beijing’s jurisdiction. In case of a conflict, this could allow these entities to disrupt the European energy systems remotely, posing a real risk to EU infrastructure. While European-made solar panels might come at a higher price today, their impact on final solar power production costs are only a few percentages. Investing now means ensuring we won’t be caught off guard by future geopolitical or economic shifts. Europe doesn’t need to produce every solar component, but having a significant domestic manufacturing base and protective regulations on the controllability of inverters is essential for safeguarding our energy future. Read more in our article here: https://lnkd.in/d3BVtWzr

On Monday (21st October) the European Parliament finally adopted the final version of the “Regulation on Prohibiting Products made with Forced Labour”. The new EU law will ban all products ― and components in products ― that are proven to have been made with forced labour. For the solar PV market the regulation could have a impact as a significant portion of the materials used in solar modules originates from China’s Xinjiang province, where state-imposed forced labour is prevalent. The province accounts for about one-third of the world’s polysilicon production, which is uses to make solar modules. Now, only a formal approval by the Council of the EU (i.e., the Governments of the EU Member States) is awaited, after which the legislation will have passed through all necessary EU approval instances. The Council is expected to give its final approval in the coming weeks, consequently the Regulation could be published in the Official Journal of the EU already this year. Unfortunately, it will take three years before the legislation is fully applicable. However, the important element is that the Database of force labour risk products or areas will be implemented beforehand. ESMC expects that Xinjiang province will be listed as a high-risk area for forced labour as soon as possible, which should prevent the import of solar PV modules or modules made with polysilicon, from that area and, in turn, would at least partly level the playing field for the European solar PV manufacturers.

We are thrilled to announce that SolarEdge Technologies has officially joined the European Solar Manufacturing Council (ESMC) family! As a global leader in smart energy technology, SolarEdge is committed to driving the solar industry forward through cutting-edge innovation and sustainability. With a strong presence in Europe, Solar Edge is proud to contribute to the diversification and resilience of the EU solar PV supply chain.

From ESMC we want to congratulate our member MCPV for this important milestone! The project would be a most welcome addition to the European PV manufacturing landscape as we desperate need cell production capacities in Europe.

Webinar: Is the NZIA Enough to Rebuild the European Solar PV Industry? Date: Thursday, October 10, 2024 Time: 10:00 – 11:15 CEST Platform: Microsoft Teams Hosted by the European Solar Manufacturing Council’s Working Group on Sustainable Solar PV Supply Chains, this event will delve into the effectiveness of the Net-Zero Industry Act (NZIA) in revitalizing Europe's solar PV manufacturing sector. Join industry leaders as they explore the scope of the NZIA and its role in reshoring green tech production. Please reach out to Jens Holm, at holm@esmc.solar, if you want to get an invitation.

Thrilled to see the approval by the European Commission of a €1.2 billion Polish scheme to support investments in strategic net-zero industrial sectors, including solar PV manufacturing! This will unlock financial support between 35% and 55% — depending on the size of the companies — for capital expenditures. In the current challenging environment for EU competitiveness, this sentiment couldn’t be more fitting: even in the darkest times, there are bright moments! The support provided here clearly acknowledges that the Polish government is actively utilizing the possibilities offered by the Temporary Crisis and Transition Framework (TCTF) to bolster local industries. Naturally, we anticipate that solar PV manufacturing will be among the beneficiaries of this evolving framework. Just eleven days ago, Mario Draghi’s competitiveness report underscored the need for OPEX support to enhance European competitiveness. In case this or similar support proposals be integrated into the Clean Industrial Deal, which is expected to be adopted within the first 100 days of the new European Commission’s mandate, it would cast such measures in a transformative light for European competitiveness. We hope seeing a step-by-step comprehensive package for European industrial competitiveness take shape. Without a doubt, Poland is making a strong case for fostering competitive net-zero technology production within the EU. Aligning these current opportunities with the anticipated future actions of the European Commission could result in a real game changer for the EU's competitive industrial landscape. https://lnkd.in/dRWMc387

We applaud the essential and timely message of the President of the European Commission Ursula von der Leyen, followed by 10 concrete actions proposed by IEA, to repair, connect and stabilise the energy sector of Ukraine. We appreciate the fact that solar PV has been included in IEA actions as action No. 3 as well as adequately reflected in the priorities of the President of the European Commission. We look forward that it would be duly positioned and streamlined during today’s meeting between President of the European Commission Ursula von der Leyen and the President of Ukraine Volodymyr Zelenskyy. Needless to say, solar power plants as decentralized electricity generation option are the most resilient solution to ensure emergency supply as well as long-term solution for the electricity generation of Ukraine. Of course, it is not a silver bullet, but for sure at least a no regret measure. On behalf of the EU PV module producers we would like to responsibly confirm that in the EU PV producers warehouses there are enough PV modules to react quickly and deliver almost one million of PV modules to Ukraine where it is mostly needed, like hospitals, schools and any other energy and socially critical infrastructure. Together with the European Commission and the Member States we must quickly establish appropriate financial and logistical framework for the smooth delivery and installation of PV modules in Ukraine before the winter. In case the respective framework would be effective, 21 hospitals would be just the beginning.

We are proud to announce that European Solar Manufacturing Council (ESMC) Policy Director Zygimantas Vaiciunas has been officially presented as a candidate for Energy Minister in the upcoming elections in Lithuania. Depending on the election outcome, Zygimantas Vaiciunas could hence be entering his second term as Lithuania’s Energy Minister. While his potential departure would be a significant loss for ESMC as an organization, it would of course be highly valuable for the whole solar sector — and the European PV manufacturing industry particularly — to have his knowledge of PV industry policies, and commitment for re-shoring the industry in Europe, represented at an EU Energy Minister level.   At ESMC we therefore cross our fingers for a favourable outcome in the upcoming Lithuanian elections. If the election in October does not result in a second term as the Energy Minister, Zygimantas Vaiciunas has informed the Secretariate and Board that he is committed to continue his work for ESMC.