The European Commission's decision to block European funding for solar PV and battery storage projects using inverters from certain high-risk countries has generated deep uncertainty across the sector.
The absence of written information on the justification and scope of the decision is already delaying solar projects across Europe - putting the EU's 2030 renewable energy goals at risk - while at the same time hindering the sector's ability to adapt to the Commission's decision.
The absence of prior consultation or an impact assessment is also a concern for the sector, and is not consistent with the Commission's own good governance principles. Without understanding the Commission's reasoning, investors cannot make informed decisions about projects, investments, procurement or financing structures.
Parts of Central and Eastern Europe look set to be hit hardest due to the importance of EU funding and financing for renewable projects in those markets, combined with their reliance on products from high-risk countries.
As a matter of urgency, we, therefore, call on the Commission to:
- Publish clear guidance on the scope of the decision, to remove ambiguity and accelerate compliant procurement decisions; and
- Set up the tools to streamline the implementation of the Commission's decision, including (1) tailored national impact assessments and transition timelines, (2) fast-tracked harmonisation of relevant network codes so that European inverter manufacturers can scale market access across Member States without delay, and (3) support for European inverter manufacturing to scale up production where necessary to meet the demands of the end-users.
Industrial policy and cybersecurity are priorities for SolarPower Europe which require distinct and tailored approaches. We have a track-record of concrete proposals on strengthening cybersecurity, and are supporting strong and strict Made-in-Europe provisions for reshoring manufacturing, in particular for inverters and Power Conversion Systems (PCS).
We stand ready to work with the Commission, our members, and all other relevant stakeholders to ensure solar and battery storage continue to deliver clean, secure, affordable electricity.
Notes:
- SolarPower Europe is the leading voice of the European solar and battery storage sector with around 300 members, approximately 90% of which are headquartered in Europe.
