The European Solar Manufacturing Council (ESMC) has sent a letter to the European Commission, indicating 8 key proposals to create a competitive European PV manufacturing ecosystem as soon as possible. The key takeaways from the backbone proposals are that speed is of the essence in this fast-moving market and that a holistic support approach is required for the framework to be impactful.
ESMC appreciates the European Commission’s preparedness to address the issues of strategic importance for Europe by creating the European Solar PV Industry Alliance (Alliance). The framework initiated by the European Commission in the EU Solar Energy Strategy responds to the continuous requests from the European PV manufacturing community. ESMC welcomes the forthcoming launch of the Alliance as a timely and necessary step in addressing key challenges for the PV manufacturing industry.
“This marks an important cornerstone in developing a competitive European PV manufacturing industry across the full PV value chain and securing PV deployment in line with the ambitious targets declared in the EU Solar Energy Strategy”
ESMC welcomes the increased European PV manufacturing target for 2025 to 30 GW across the entire value chain, which is in line with the previous proposal of ESMC. However, ESMC strongly proposes to further complement it with the PV manufacturing target of 80 GW for 2030.
As a key target for the Alliance, ESMC maintains the position that the cumulative effect of the incentives for the European PV ecosystem developed by the Alliance should be equivalent, or as close as possible, to non-EU manufacturers. The aim is to design a framework so that the operational cost structure of the entire European PV value chain will be globally competitive. ESMC argues that there is a critical need to create appropriate incentives for the scale-up of the European PV manufacturing capacities.
“Supportive policies are the backbone of the competitiveness of the European PV industry. ESMC’s proposals include a necessity for a fast and strong European response to the US Inflation Reduction Act (IRA), with the target to equalize competitive conditions, and consideration of capital and operational cost support measures, which is critically important to de-risk and accelerate the investments in existing and potential new PV manufacturing projects. The European PV manufacturing “house is on fire” in a view of the urgency created by the US IRA”
ESMC proposes concrete support measures, including the creation of a € 20 billion special financial vehicle to accelerate and de-risk the investments, developing effective off-take agreements for local production, setting EU standards and regulations on labour laws, hidden subsidization, CO2 footprint and circularity, boosting innovations and streamlining permitting procedures for PV deployment and for construction of industrial PV manufacturing plants. The implementation of these measures should be reflected in a dedicated action plan of the Alliance, to create clarity and trust for European PV manufacturing developers and investors.
ESMC is prepared to spare no efforts and dedicate all the necessary measures while taking concerted actions for the success of the Alliance and enable positive changes in the European PV manufacturing landscape.
Next week (9 th December) the European Solar PV Industry Alliance will be endorsed by the launch conference in Brussels. The European PV manufacturing industry is kindly invited to participate in this cornerstone event. The registration is provided on the European Commission’s Alliance website.
ESMC, currently uniting 50 members, is the organisation representing the interests of the European PV manufacturing industry. We rely on key industrial companies, organisations, and research centres active in the PV sector rooted in Europe. ESMC aims at promoting and supporting the PV manufacturing industry and its value chains at the European level, by creating a supportive political environment.