Regeneration! Will the EU start punitive tariffs on China's photovoltaic industry?

In recent weeks, the European photovoltaic market has risen again.

According to overseas media reports, some countries, such as Germany, urged the European Union to follow the example of the United States and restrict the import of Chinese component products by increasing tariffs and other trade protection measures. The reason is that Chinese photovoltaic modules are "flooding" into the European market, but the price is much lower than manufacturing cost of local enterprises, forcing them to cut production.

However, is it possible for EU countries with ambitious renewable energy development goals to get rid of their dependence on Chinese photovoltaic products because of the energy crisis brought about by the war between Russia and Ukraine, the lagging development of local photovoltaic industry and the shortage of supply? Ccement. Com/richtext/IMG/2ypk3lh3vxn1696814670810.png ">

Costs up to 2 times the market price, Inventories continue to soar

, European photovoltaic companies can't find "parents"

, Reuters reported that by the end of September, the price of component products exported from China to Europe had dropped to about 0.15 euros/W, and is expected to continue to decline. The current price of European manufacturers is 0.

In the face of Chinese products, European photovoltaic manufacturers are almost completely "unable to fight".

At the same time, the continued decline in market prices has resulted in a large backlog of module products from European photovoltaic dealers. Rystad Energy, a consultancy, revealed that by the end of August, module inventories in Europe had increased from 40 GW in mid-July to about 80 GW, and by the end of the year. This figure may exceed 100 GW .

Perhaps because of the "stress" reaction brought about by the energy crisis triggered by the war between Russia and Ukraine, European countries seem to "fall in love with hoarding".

According to the statistics of the European Commission, at present, more than 90% of solar panel silicon ingots and wafers in the EU come from China. From 2021 to 2022, the number of Chinese solar modules imported by European countries increased by 112% to about 87 GW , according

to Rystad Energy. It is expected to reach 120 GW in 2023. The main importing countries are the Netherlands, Spain, Germany, Poland, France, Greece, Italy and the United Kingdom. Among them, the import volume of the Netherlands is close to 45 GW, which is more than 10 times the number of components installed in the whole year.

At present, there is still no sign of easing the trend of falling prices, and the products in European inventory are depreciating, so it is not difficult to understand the "suffering" in the hearts of European photovoltaic enterprises.

But it is not just Germany that wants to find "parents" to take the lead, hoping to impose trade tariffs.

On October 3, Spain's acting energy minister, Teresa Ribera, told the media that despite industry warnings that disruptions in the supply of Chinese products could hinder Europe's ability to quickly install clean energy. However, it does not rule out the imposition of import tariffs on Chinese photovoltaic products.

With the rapid development of renewable energy such as photovoltaics in Europe in the past few years, The European Union and its governments and people have gradually tasted the "sweetness" brought by clean energy, and the growth rate has greatly exceeded the original target , and has recently raised the development target of renewable energy. Raising EU

On September 20, the European Commission issued a new Renewable Energy Directive (RED), updating the EU's targets for clean energy use, including, Increase the 2030 renewable energy target for EU countries from 32% to 42.5% and encourage the achievement of 45% ; reduce the final energy consumption of the EU by 11.0% by 2030.The directive will enter into force in October 2023. In July

this year, the Italian government proposed to revise the national energy and climate plan to increase the proportion of renewable energy in total final electricity consumption from the current target of 55% to 65% by 2030. At present, the proposal has been sent to the European Commission (EC), and the updated version is expected to receive final approval in June 2024.

It is said that Italy plans to expand the installed capacity of renewable energy from 58 GW at the end of 2021 to 131 GW by 2030. By 2030, Italy plans to almost double its renewable energy generation from the current 119 TWh to 228 TWh, the report said. At the end of June

this year, the Spanish government revised its Energy and Climate Plan (PNIEC) to increase the target of renewable energy installed capacity to 160 GW by 2030. A 23% increase from the previous forecast of 123 GW.

According to Spain's Ministry of Environmental Protection, this figure will account for 75% of the country's projected total energy capacity of 214 GW by the end of 2030. Among them, the installed capacity of photovoltaic solar energy will reach 76 GW, of which 57 GW are ground power stations and the remaining 19 GW are self-operated power stations.

Portugal

In July 2023, Portugal released a draft revision of the National Energy and Climate Plan 2030 (PNEC). Renewable energy development targets have been updated: the revised plan sets a target of increasing the share of renewable energy in total final electricity consumption from 80% to 85% by 2030.

Among them, the target of operating photovoltaic installed capacity is 20.

Although Germany

is the first to attempt to initiate restrictions on Chinese photovoltaic products, Germany's application and target setting of renewable energy is the most advanced among EU countries.

In 2022, the German cabinet passed a package of bills to accelerate the development of new energy power in the country. Include plans to provide 80% of electricity from renewable sources by 2030, 115 GW of onshore wind capacity in Germany by 2030, and at least 30 GW of offshore wind capacity and 70 GW in 2045. By 2030, solar power generation capacity will increase from 59 GW to 215 GW .

, but even in the current policy environment of the European Union, It is no small challenge to achieve the new development goals of renewable energy in various countries. Shortly after the European Commission issued the new Renewable Energy Directive (RED), Bloomberg New Energy Finance said that even the most optimistic forecast. The EU wants to realize that renewable energy accounts for the final energy consumption. 42

. If trade protection measures such as punitive tariffs are launched again, the impact on the EU's clean energy process will be even greater. The news has been opposed by some industry organizations and enterprises within the EU.

In the week that the European Commission launched an investigation this month to impose tariffs on China, the European Solar Energy Industry Association raised objections, warning policymakers not to impose tariffs on imports. Fears that a disruption in the supply of Chinese products would seriously damage Europe's ability to install clean energy quickly. "Tariffs are not a good solution to the current challenges of the European solar industry," the European Solar Industry Association said in a statement that trade barriers in the European solar sector would be a "lose-lose strategy" and urged the government to help local manufacturers grow through state aid and other means. Easier to support local factories.

"Instead of sanctioning entire industries through tariffs, we must encourage solar installations from European solar production.". In this way, the deployment of solar energy can continue without interruption, and European solar manufacturing can grow steadily, "the Swiss solar cell manufacturer said.".