Leaks reveal EU efforts to close Chinese PV offshore loophole

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

More details of the EU trade deal have emerged including an attempt to stop Chinese manufacturers from circumventing the legislation by sending production capacity overseas.

According to a document seen by PV Tech, Chinese firms will come under scrutiny by the European Commission should they shift factories to territories such as Taiwan and Malaysia.

Changes to manufacturing operations will have to have clear financial motivations, with those designed clearly in response to the minimum price undertaking on imports into the EU from China considered a breach of the agreement.

The document also anticipates that the 7GW market cap on annual Chinese module imports will be allocated by the Chinese Chamber of Commerce (CCCME) on a first come, first served basis. Imports over and above the annual cap will have the anti-dumping levies, averaging 47.6%, applied to them.

The CCCME will monitor the process and issue reports to the EU every quarter. Separate material seen by PV Tech confirms that CCCME has already developed a tailored online portal for manufacturers to manage their filings for the price undertaking.

All the final details of the undertaking will be put to EU member states at the European Council on 18 October at the earliest.

PV Tech also understands that both the cap and the minimum import price will be subject to change should market conditions alter compared to consumption and price levels as recorded in May and June of this year.

The wording of the price undertaking has left these mechanisms open to some interpretation but it is widely believed that a 5% change in spot prices would result in an alteration of the minimum import price. Changes to the annual quantitative cap are expected require a 10% fluctuation in consumption volumes.

A minimum six to nine month lag time is expected for this process to take place. There is nothing to suggest that these changes cannot be made in both directions.

More details have also been acquired on the price that undertaking applies to. It will be based on the Cost, Insurance and Freight (CIF) Community Frontier price.

PV Tech also understands that modules imported to the European subsidiaries of Chinese manufacturers will be subject to an additional charge if they are then resold.

On top of the €0.56 per Watt minimum import price, a 5% “cost of doing business fee” will be added to the floor price that the European operations of Chinese firms can charge third parties.

10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 
24 November 2021
In this webinar we will assess how these technical parameters and land characteristics can make a difference, in order to correctly make the choice between 1P or 2P trackers. There will be a comparison of the behaviour of Soltec’s 1P tracker, SFOne, and its 2P tracker, the SF7.
1 December 2021
Understand fully the technical and logistical supply chains that determine the production and performance of solar modules, including all related factors impacting quality, reliability & bankability. This event will be run online with streamed content, access to session recordings and chat/messaging tools for delegates to connect.
2 December 2021
Intersolar is the world’s leading exhibition & conference series for the solar industry. As part of this event series, Intersolar India in Mumbai is India’s most pioneering exhibition and conference for India’s solar industry. It takes place annually and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. Since 2019, Intersolar India is held under the umbrella of The smarter E India – India’s innovation hub for the new energy world.

Read Next

October 27, 2021
Colombia has awarded contracts to 11 solar PV projects with a combined capacity of 796.3MW in its third renewable energy auction.
October 27, 2021
Microinverter supplier Enphase Energy reported record quarterly revenue in Q3 2021 but stressed the importance of price increases to help offset price volatility in its supply chain.
October 27, 2021
Spanish utility Iberdrola has expanded its investment in renewables and smart grid projects to €7.03 billion (US$8.15 billion) but its net profit suffered, falling 10.2% to €2.4 billion (US$2.78 billion), according to its recent financial results for 2021 release today.  
October 27, 2021
India installed around 8,811MW of solar between January and September 2021, a 280% increase on the same period of 2020, according to JMK Research & Analytics.
October 27, 2021
Swiss fund manager SUSI Partners is acquiring a portfolio of more than 200MW of distributed solar PV and wind assets in Chile, marking its first investment in Latin America.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021