The Industrial Accelerator Act says that solar projects awarded through government procurement or other public support schemes must include European-made solar inverters and cells within three years of the law coming into force. For battery energy storage systems, similar requirements would be introduced in a phased approach starting one year after the law comes into force.
The European Commission has adopted a legislative proposal aimed at introducing EU-defined content requirements for products that receive public funds. including solar photovoltaics and battery energy storage systems (BESS).
The draft regulation, known as the Industrial Accelerator Act, proposes solar energy projects awarded through public tenders, auctions for net-zero technologies and government support schemes must cover solar inverters and solar cells, or equivalent components, manufactured in the EU within three years of the entry into force of the law.
Dries Acke, deputy CEO of SolarPower Europe, called the act a “turning point for industrial policy in Europe.”
“By focusing on Made-in-EU solar inverters and cells, the European Commission has largely struck a balance between reinstating production of the most strategic components of solar PV systems, and avoiding overly restrictive requirements too early,” he said. “This means support for European manufacturers, without having a negative impact on the affordable deployment of solar energy. However, there is an important caveat here: Made-in-EU should indeed mean: made in Europe – the EU and the EEA.”
The law also stipulates that BESS must originate in the EU and that systems larger than 1 MWh must include an EU-made battery management system, starting one year after the law comes into force. From three years after accession, BESS will be obliged to additionally include EU-manufactured battery cells and at least one additional main specific component.
Acke added that the BESS requirements are stricter than those for solar, come into effect too early and jeopardize productivity as Europe works to increase its storage capacities.
“Battery storage is the absolute shortcut to maximizing Europe’s use of domestically produced renewable electricity and reducing Europe’s exposure to punitive fossil gas import prices,” Acke said. “Accelerating battery storage provides a fundamental basis for the EU’s top priorities for security and competitiveness.”
Aurélien Ballagny, Senior Policy Officer at Energy Storage Europe, agreed that the introduction of EU-origin requirements across the battery supply chain should be gradual to send clear signals to investors and allow sufficient time to build the necessary industrial capacity. “Identified dependencies must be addressed through a realistic diversification pathway, ensuring that the deployment of energy storage, and therefore renewables, is not delayed or made more expensive,” Ballagny said.
The European Solar Manufacturing Council (ESMC) has issued a statement saying it is “deeply disappointed by the watered-down local content requirement for solar.” It says that limiting the criterion to solar inverters and cells will not make it possible to bring the entire solar supply chain to Europe and expresses concern that the three-year delay in supply will mean this is unlikely to become law until 2030.
“We need Made in Europe to guarantee the continent’s long-term energy security. The current explosion in energy prices, caused by the war in Iran, shows how important it is to be independent from other regions,” said ESMC Secretary General Christoph Podewils. “If the European solar industry has to wait another three years after the legislation is passed, many companies will have disappeared by now due to continued unfair competition from China.”
According to a statement from the European Commission, the Industrial Accelerator Act will be negotiated by the European Parliament and the EU Council before it is adopted and enters into force. No indicative timeline has been published.
Other features of the law include conditions for investments in strategic sectors of more than €100 million ($116.2 million), with a single third country holding more than 40% of global production capacity. The condition, which will affect investors from the Chinese photovoltaic market, stipulates that these investments must comply with local content requirements, while the investor cannot hold a majority stake in an EU company, must employ mainly European workers and license its intellectual property to benefit the EU investment.
Other proposals under the law included streamlining and digitalizing permitting procedures for industrial projects through the development of a one-stop shop, and the introduction of so-called Industrial Acceleration Areas to create clusters of clean manufacturing projects.
Figures from the European Commission show that the Industrial Accelerator Act will help create tens of thousands of European jobs, including 85,000 in battery projects and 58,000 in solar energy production. Digitized permits are expected to lead to administrative savings of up to €240 million across all manufacturing industries in the EU.
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