China has the largest capacity for the production of photovoltaic panels in the world, and the panels there do not end only on the domestic market. China also exports large volumes of panels to the US, Europe and other parts of the world. The federal governments of the two German countries have now turned to the federal government and EU representatives with a demand to regulate the import of panels from China. The federal states are even asking for a ban on the import of panels that do not comply with EU climate and labor standards.
Photovoltaic panels of European production form according to Reuters only a fraction of the installed panels in Germany. European manufacturers have long been concerned about the influx of cheap solar panels from China, which can be offered even below production costs. After a meeting with representatives of the solar industry, the regional governments of Saxony and Saxony-Anhalt presented a ten-point plan to save the German solar industry.
According to the representatives of these two federal states, support systems through purchase prices or auctions for RES should also take into account hidden costs related to recyclability, their carbon footprint or working conditions during the production of imported panels. According to a German economy ministry document seen by Reuters, the German government is considering steps to support domestic producers, including subsidies or various trade instruments.
On Friday, the German ministry said Chinese panels originally intended for the US market were flooding Europe, putting enormous pressure on prices and local manufacturers. According to the ministry, the use of unspecified business tools could help in the fight against unfair competition. According to Reuters, thousands of shipments of solar power plant components from China’s Xinjiang autonomous region piled up at US ports last year after their importation was banned over concerns about the use of forced labour.
According to Marius Mordal Bakke from the consulting company Rystad Energy, there are currently panels with a total output of roughly 40 GW in European warehouses. According to him, this volume is larger than many European countries can install now.
Massive Chinese imports are pushing prices down strongly in Europe
Since the beginning of the year, the massive import of components from China has pushed panel prices down from roughly 24 eurocents per Watt of power to 15 cents. According to Zygimantas Vaiciunas, who served as the Minister of Energy of Lithuania in the past years and is currently active, among other things, in the European Council of Solar Manufacturers, European manufacturers offer prices of around 30 cents per Watt.
“The mini-group and its uncompetitive business model must not be protected at the expense of a stable, profitable, end-customer-oriented large industry,” said Boris Radke from the company Enpal, which deals with the supply of solar power plants, according to Reuters.
According to Gunter Erfurt, CEO of Swiss solar panel maker Meyer Burger, which manufactures its panels in Germany, there are smarter ways than tariffs or other trade tools. According to him, Germany could, for example, require the provision of a part of components from European production in auctions. However, Erfurt supports a ban on the import of panels whose production involves the use of forced labor.
2023-10-01 10:06:00
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