EU Industrial Act sparks solar PV manufacturing debate
The European Commission on Wednesday announced its proposed Industrial Accelerator Act (IAA) to strengthen European manufacturing and reduce strategic dependencies in key clean-technology sectors, including solar photovoltaics (PV).
According to the EU news release, the proposed Act seeks to stimulate demand for European-made low-carbon products through public procurement rules and public-support schemes across several strategic sectors, including solar PV, wind, batteries, heat pumps and electric vehicles.
The initiative is part of a broader EU strategy to restore industrial competitiveness and reduce reliance on foreign supply chains in the energy transition, it said.
Under the proposal, public authorities would be required to apply Made-in-EU or low-carbon requirements when awarding contracts or allocating public support in selected industries. The rules are intended to encourage the use of locally manufactured technologies and stimulate investment in European manufacturing capacity.
The legislation also introduces measures to simplify permitting procedures and create Industrial Acceleration Areas, designed to cluster clean-technology manufacturing projects and related infrastructure.
Still, the European Solar Manufacturing Council (ESMC), representing European PV manufacturers, said the proposal does not go far enough to safeguard the continent’s solar industry, in a news release on Wednesday. This provision will likely only enter force in 2030 and the delay will further weaken the entire proposal, ESMC said.
For ESMC, the definition of Made in Europe is too broad because it could include products from countries that have free-trade agreements with the EU, potentially diluting the intended demand signal for domestically produced solar components.
By limiting the criterion to just two components of solar installations (inverters and cells), it will not be possible to bring the entire PV supply chain back to Europe, the ESMC said. It called for the Act to gradually expand Made-in-Europe provisions across all solar PV components and market segments, and to tighten rules around suppliers considered high-risk to the EU’s economic security.
Secretary general of the ESMC Christoph Podewils also warned that delays in implementing meaningful support could jeopardize remaining European solar manufacturers.
“We need ‘Made in Europe’ to ensure the continent’s long-term energy security,” Podewils said.
He warned that if the solar industry waits several years for more effective measures, then in the meantime many companies could disappear due to ongoing competition from heavily subsidized Chinese manufacturers.
The proposed IAA regulation will now be negotiated by the European Parliament and the Council of the European Union, before its adoption and entry into force.