BRUSSELS, Belgium (Tuesday 26 November 2024): On behalf of the SolarPower Europe Board, the Secretariat has issued the following joint statement.
This follows reports of European inverter manufacturers facing global price pressure and competition.
Issued during the quarterly meeting of the SolarPower Europe Board exceptionally held at SMA headquarters in Kassel, Germany – this statement can be attributed to SolarPower Europe and its Board of Directors:
“Inverter manufacturing has historically been Europe’s strongest link in the solar supply chain. As recently as 2023, the continent hosted more than 80 GW of inverter manufacturing, primarily focused (86%) in string inverters which are particularly well suited for rooftop PV systems in residential and small-scale commercial applications.
We acknowledge the important role for the path of the energy transition by inverter-based energy supply and the crucial role for the system stability and sovereignty.
However, the industry now faces difficulties due to global manufacturing overcapacity and a slowdown in the rooftop PV segment in several important European markets.
Inverters are the brains of the energy system, connecting solar output to grids, batteries and other clean energy technologies, which become only more important as Europe electrifies and digitalises its energy systems. Europe can simply not afford to lose this critical industry and must act now.
As a structural solution, we call on European policymakers in Brussels and Member States to consider a dedicated Important Project of Common European Interest (IPCEI) on smart and secure electrification, to better leverage public funding and guarantee EU’s leadership in the critical communication components of the future energy systems, like solar inverters.
But more immediate measures are needed as well. We ask European policymakers to develop an action plan for the EU inverter industry, exploring all options on the table, including; enforcing the highest standards on cyber- and energy security, and providing direct financial support mechanisms to enhance its competitiveness on a global scale, while ensuring a level playing field.
The electrification and digitalisation wave are an opportunity for Europe’s inverters to seize the innovation edge, wield next-generation grid-forming ability, and establish a competitive global market share.
Right now, Europe can take up this opportunity to entrench its world-leading spot in inverters that go the extra mile – supporting the grid and securing cyber-preparedness. However, with inaction, Europe risks not only the inverter industry – and tens of thousands of jobs – but the secure electrified transition itself.”
Further Resources
- SolarPower Europe published its position paper on Cybersecurity in July 2024, setting our initial proposal for more robust cybersecurity rules for distributed energy resources. Read here.
- SolarPower Europe published its initial proposal for an IPCEI to support inverters in June 2024, along with our latest market analysis on European inverter manufacturing. Read here.
About IPCEIs
Important Project of Common European Interest (IPCEIs) are Member State-led ambitious cross-border breakthrough innovation and infrastructure projects that can contribute significantly to the achievement of EU strategies, including the European Green Deal and the Digital strategy, while generating positive spill-over effects benefiting the EU economy and its citizens at large beyond the participating Member States.
Since IPCEIs are funded from national budgets, Member States are in the driving seat to identify the scope of the project, to select (preferably following open calls) participating companies, and to agree on project governance.
The public support by Member States to the projects and companies participating under the IPCEI, which constitutes State aid under EU rules, has to be notified to the Commission for assessment and approval. The Commission stands ready to support plans by Member States and the industry, provide guidance and coordinate efforts, where necessary, and is committed to a swift assessment of the relevant projects as soon as notified. Once formally notified, the Commission assesses proposed projects under the IPCEI Communication. Read more from the European Commission here.
EU Commissioners-designate have spoken at length about IPCEIs during their confirmatory process. Incoming Executive Vice-President for a Competitive Transition, Teresa Ribera, proposes that IPCEIs are “a vital tool for investing collectively in the technologies and infrastructures of the future, generating industrial Press statement innovation and dynamism and positive spillovers for the wider European economy” and they should be supported by a new European Competitiveness Fund.
Questions? Get in touch.
Bethany Meban
Head of Press and Policy Communications
Header Image
© SolarPower Europe - The SolarPower Europe Board at SMA Headquarters in Kassel, Germany, November 2024 .
Back Row (L-R):
Judy Gould, SolarPower Europe; Karsten Schlageter, ABO Energy; Michael Schmela, SolarPower Europe; Kristina Thoring, SolarPower Europe; Eric Quiring, SMA Solar Technology; Jörg Ebel, IBC Solar; Jochen Hauff, BayWa r.e.; Juan Rivier Abbad, Iberdrola; Nikola Gazdov, Bulgarian Association for Production, Storage and Trading of Electricity (APSTE); Thomas Rührlinger, Fronius International; Susannah Wood, Statkraft; and Dries Acke, SolarPower Europe.
Front Row (L-R):
Walburga Hemetsberger, SolarPower Europe; Alexander Zahariev, Sunotec; Pia Alina Lange, Trina Solar; Katharina Eickelberg, SMA Solar Technology AG; and Aristotelis Chantavas, Enel Green Power; and President of SolarPower Europe.
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