Boosting EU solar manufacturing with Public Procurement
Non-price criteria. Sustainability prequalification. Resilience rules. Cybersecurity restrictions. Environmental and social bonus points.
Download the position paperThe Net-Zero Industry Act (NZIA) is a key part of the puzzle in setting an EU industrial strategy for solar PV. It sets the 30 GW solar PV manufacturing capacity goal. It also includes a goal for the EU to have at least 40% of net-zero technologies manufactured and deployed in the EU. As part of this, the NZIA sets rules to drive public/government demand for European solar, through public procurement (NZIA Article 25), renewable energy auctions (NZIA Article 26), pre-commercial and public procurement of innovative solutions (NZIA Article 27), and other forms of public intervention (Art. 28).
As a societal benefit, public authorities should be investing in solar supplies that reinforce the resilience of the supply chain and encourage strong sustainability standards. This should clearly support European solar manufacturers.
It’s important to make resilience criteria implementation practical, while sustainability considerations set in March with the NZIA Implementing Act should be equally operational. Ultimately, the Implementing Act must be crystal clear on how public authorities must implement the NZIA. Authorities are already often overburdened and under resourced.
SolarPower Europe has made recommendations on how to well-design the rules to maximise support for solar manufacturing, while streamlining for public authorities:
Environmental Sustainablity
SolarPower Europe suggests carbon footprint performance criteria that are stricter than general market access standards under the upcoming PV Ecodesign carbon footprint measures once the act enters into force. We stand for the principle of carbon footprint eligibility criteria that are somewhat tighter than market entry standards, for example in the range of 15% lower than the maximum threshold expressed in kWh, or its equivalent in kWp.
Although not requested by law, additional bonus points can be granted for the following aspects: PFAS-free polymer layers (respecting concentration limits based on the ECHA restriction proposal once the act enters into force); antimony-free solar glass; improved module performance (Energy Label classification or other industry standards available); longer module warranted lifetime (performance warranty of 30 years or beyond) and mounting structures with improved lifetime, durability (with increasing bonus points for every additional 10 years beyond 30 years) and recyclability. It is important that these remain bonus criteria and not minimum requirements, considering the potential impacts on product availability.
Resilience
In measuring whether a solar product is ‘resilient’ or not, SolarPower Europe suggests, when a supply dependency according to Art. 25 (7) has been identified, that at least 50% of the value of the main specific components of the specific net-zero technology have to be manufactured outside the dominant source of supply. For example, products could come from EU countries or other signatory countries of the WTO Agreement on Government Procurement.
Social and Employment
Solar systems which are installed via public procurement should also follow the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and United Nations Guiding Principles on Business and Human Rights relating to social and employment-related considerations as a reference which are all connected to the ILO Convention.
Cybersecurity
Public authorities should only use products and solar systems which support the robust cybersecurity of our energy system. We recommend that relevant operational data of EU PV power plants, and smart energy equipment with potential impact on grid stability, remains in the EU or jurisdictions that can ensure an equivalent level of security. Key parts of EU GDPR and the processing of data should apply. We also recommend that authorities only procure solar installations with advanced certification, like ISO 27001 or equivalent.
Bonus points
Beyond the minimum requirements set out above, SolarPower Europe also makes recommendations on ‘bonus points’ that allow authorities to award well-performing material (without risking security of supply of products). For example, public authorities could also award bonus points to projects or installations that encourage profit sharing with citizens or where investment schemes have been based on crowdfunding, via an energy community.
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