Cutting minimum solar import price for China will do more harm in EU - ProSun
Jul 31, 2014 - A further reduction of the minimum import price for China-made solar panels into the European Union (EU) will destroy the European solar industry, sector association EU ProSun warned on Wednesday.
In a report the same day, the Wall Street Journal cited a person familiar with the matter as saying that the minimum price agreed with Chinese photovoltaic (PV) firms importing products in Europe might be further lowered by an additional 5%-10%. If it happen, it will be the second cut for a year as in April the European Commission (EC) agreed to lower the rate by 5% to EUR 0.53 (USD 0.71) per watt.
In December 2013 the EC imposed punitive levies for dumping and illegal subsidies for all Chinese photovoltaic (PV) makers. The price undertaking deal reached a few months earlier gave Chinese companies the option to avoid the duties by selling their products in the EU above fixed floor prices.
EU ProSun’s president Milan Nitzschke explained that some 20 EU solar gear manufacturers have filed for bankruptcy or have ceased operations even after the price undertaking agreement. Meanwhile, China in July said it would award subsidies to 161 of local solar firms whose exports are mostly to the EU, which is seen to further damage the European PV industry, according to EU ProSun.
“The European Commission must reject China’s attempts to modify the undertaking and manipulate the EU solar market into a deadly spiral to the bottom,” Nitzschke said.
EU ProSun in June sent to the EC a list with over 1,500 Chinese solar makers offering prices below the agreed minimum level.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.