Cheap Chinese solar panels are flooding the EU market and threatening the viability of homegrown companies.
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00:00 Solar panel manufacturers in Europe say the sector is facing an existential challenge
00:08 from heavily subsidized Chinese competitors. According to insiders, Chinese solar panel
00:14 manufacturers have a near monopoly on the sector, and if no measures are taken, Europe's
00:20 industry could collapse within months. European manufacturers have asked the European Commission
00:25 for emergency aid, including the purchase of accumulated stock to provide liquidity.
00:32 "So China has been subsidizing their industry for more than a decade. They took a strategic
00:39 decision for more than 15 years ago that they saw PV as a strategic technology. They have
00:47 done so in other areas such as electric vehicles and batteries, etc."
00:53 Lower prices elsewhere have made several companies decide to relocate outside of the continent,
00:59 whilst others have made staff redundant.
01:02 "To fight against the fierce competition from China and avoid falling into the broken
01:06 bank, solar panels like this have had to adapt and innovate much more in low-income countries,
01:11 for example by creating this solar panel, which is much lighter than the usual ones
01:15 and can be installed on roofs that do not support the weight."
01:21 But even for those innovators, the situation could soon become untenable.
01:26 "If it takes one or two years, a lot of companies, and also us, we will see some impact, definitely,
01:34 with having to go down with price levels and being less competitive and profitable."
01:39 Chinese competition not only endangers companies, but also could affect Europe's industrial
01:45 independence. A module produced in China is about 50 percent cheaper than one made in
01:51 Europe. Meanwhile, European producers account for only 3 percent of the EU market.
01:56 In the medium term, the EU has two directives almost finalised that could reduce competition.
02:02 The first would require 40 percent of the clean technologies installed in the EU to
02:07 be manufactured here as well. The second would prohibit the sale in the EU of products made
02:13 with forced labour, something that happens in several areas of China.
02:17 The European Commission has not yet announced any emergency measures and is still assessing
02:22 the situation.
02:23 "It's important that the solar market in Europe keeps growing because we're still not at the
02:28 levels that we need to reach the 2030 targets. So any industrial strategy for the manufacturing
02:35 needs to make sure that it doesn't impact negatively the continued growth of the European
02:40 solar markets."
02:43 Striking the right balance is essential for the EU. Solar energy is one of the cheapest
02:48 and easiest to install. So rapid deployment could make a difference in meeting climate
02:54 targets. By 2030, 42.5 percent of all EU energy will have to come from renewable sources.
03:01 END
03:05 (whooshing)