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The European Commission recently adopted a Temporary Crisis and Transition Framework (TCTF) to provide support opportunities for Net-Zero industries. With confirmation from the European Commission, the European Solar Manufacturing Council (ESMC) clarifies the time limit of this aid framework, which appears to have been widely misinterpreted. 

On 9th March, the European Commission adopted the Temporary Crisis and Transition Framework (TCTF) which provides support opportunities for Net-Zero Industries, including PV manufacturing. While one of the key conditions for the aid is that it should be granted by 31 December 2025, it’s important to note that the end of 2025 marks the final date for the Member States to inform the European Commission about the actual aid framework decided. The actual aid payments for CAPEX expenditures or tax advantages, loans, and state guarantees have no defined time limit, which has been confirmed to ESMC by the European Commission. Our understanding is that one significant advantage of the TCTF measure, which seemingly has not been fully grasped, is the absence of a time limit. This aspect could make the TCTF even more appealing for revitalizing the European PV industry than initially anticipated.

ESMC encourages EU Member States and European PV manufacturing companies to secure financial support without delay through the REPowerEU chapters of the revised national Recovery and Resilience Plans of the EU Member States. This is a fast and operational financing opportunity for the European PV manufacturing industry, and the € 20 billion REPowerEU financial envelope is an appropriate financing scheme to develop competitive PV manufacturing capacities across Europe.

Some EU Member States have already decided or started to consider distributing extensive REPowerEU financing for Net-Zero Industries, including PV manufacturing. For example, Spain has announced a national call for interest for Net-Zero Industries to design concrete financing for already allocated €1 billion using REPowerEU chapters of RRP.

The TCTF allows for more flexible and operational support for the PV manufacturing industry than ever before. Therefore, ESMC encourages the EU Member States and European PV manufacturing companies to take advantage of this support and secure financing through the REPowerEU without any delay, as the RRPs should be submitted to the European Commission for adoption in due time.

Picture: imec

Žygimantas Vaičiūnas
ESMC Policy Director

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