The European Commission has told PV -Magazine That it will give unlikely priority to support operational expenditure (OPEX) for manufacturers of solar and clean technology, which mentions concern about potential market distorting, even as insolventions in the European PV sector increase.
The German glass maker GMB launched insolvency procedures this week and joined a long list of European solar producers who have explained insolvency in the past two years, despite supporting capital expenditure (Capex) and other stimuli and various EU member states.
Various industrial analysts say that the European PV sector needs operational expenditure (OPEX) – measured in euros per WATT produced – in the entire supply chain, similar to the US Inflation Reduction Act (IRA) under the administration of former US President Joe Biden. Financing new, highly automated glass, polysilicon, waffles, solar cells and modules may not cause survival if the current business and maintenance costs are discovered, especially in the midst of the current global overcapacity and very volatile energy prices in Europe.
Despite these challenges and signs that the current stimuli cannot be sufficient to breathe new life into the PV industry industry, the European Commission has so far resisted the implementation of an OPEX schedule. The committee wants to find a balance between the efforts of resolving while retaining relatively free market conditions.
“Help about Opex is considered special deform competitionBecause it contributes to maintaining inefficient market players, without creating any incentive for them to become more efficient, “said Luuk de Klein, the press officer of the Competition Commission of the European Union, said PV -Magazine. “This also applies where OPEX would be supported in the context of a new investment, because it is the risk of repressing existing producers of the market.”
De Klein noted that under normal market conditions, clean technology producers should be able to cover their operating costs without extra public support.
“The committee is ready to help Member States to identify the right ways to, according to the rules of the state assistance, public support that is tackling market errors, necessary, proportional and not unnecessary deform competition and trade in the internal market or to release such public support without state aid“The small added.
He also noted that help could be provided on a case-by-case basis to cover the financing gap between EU support and subsidies from non-EU countries, if there is a concrete risk that investment will be derived from Europe.
“The method for financing gap covers all relevant costs, including Capex and OPEX, as well as the expected income of such a project,” he said.
The extent to which the approach to the financing gap can cover remains unclear. The European Solar Manufacturing Council (ESMC) considers OPEX stimuli “essential” to bridge the prospective modules and Chinese input by European imports.
“Similar mechanisms are about to be used to support battery production in Europe,” said Christoph Podewils, an ESMC spokesperson. “The Innovation Fund and other EU instruments must be used urgently to support the production of solar energy with performance-based, transparent and time limited OPEX schemes. Reform rules for reform EU State AID (CISAF) must be operated, flexible and generous state-of-the-segment. To save European Solar production. “
The ESMC said that under normal market conditions, clean technology producers must be able to cover their operating costs without extra public support, especially when their investment costs have already been subsidized.
“Operational help can be in particular deformI am because it can immediately reduce the costs of goods or services on the market and it can be maintained in the market managers who are losses in the long term, “said Podewils.”However, manufacturers of clean technology love Battery producers can be confronted with unfair worldwide competition, unexpected cost overruns or uncertainties in future demand, but not only during the disaster-up period, which are inherent in their activities. “
European PV Association Solarpower Europe said that OPEX support will be crucial to breathe new life into European industry for renewable energy.
‘The most important difference in costs between EU-made and global competition is in OPEX, which means that they run sun factories, ”said a spokesperson for SolarPower Europe PV -Magazine. “This is our most important obstacle to global competitiveness. If we are serious about rebuilding a resilient European solar industry, we must support OPEX.”
Solarpower Europe added that the Clean Industrial Deal State Aid Framework (CISAF), approved on 25 June, is another missed opportunity to support OPEX for solar manufacturers. The scheme does not include business support for producing and selling end products.
“We need the next EU budget to reserve financing to support Capex and OPEX for solar manufacturers,” said the spokesperson. “Infrastructure for clean energy, including solar energy, is the backbone of EU’s competitiveness; budget obligations must reflect this priority in the light of global competition.”
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