Exclusive: Error leaves at least 16 Chinese manufacturers in EU trade limbo

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Updated: A clerical oversight in China has resulted in at least 16 manufacturers being excluded from the EU trade agreement, PV Tech has learned.

A list of companies that were party to price undertaking has left multiple names out, despite the companies claiming they agreed to deal that came into force today.

As a result they will now be subject to the EU’s punitive anti-dumping tariffs, which are as high as 47.6%. One of the companies involved, which asked not to be named, said it would take at least a month to fix the error. It is now assessing its options

Companies listed in the annex of an EU document published on 3 August are excluded from the duties on the agreement that they implement a minimum import price. PV Tech has confirmed with multiple manufacturers that this level will initially be set at €0.56 per Watt. This level will be held for 12 months from 6 August before being reappraised.

A spokeswoman for the European Commission told PV Tech the list was submitted by the Chinese Chamber of Commerce (CCCME).

“The companies that are included in the Commission Regulation exempting them from anti-dumping duties are the ones that participate in the undertaking. This list of companies has been submitted by the CCCME, following many careful checks, leading to the submission of a formal offer on behalf of the Chinese exporting companies on 27 July. All companies that are on the list have cooperated in the investigation. The undertaking is now closed with the legislation having been adopted,” they said.

Meanwhile, no details on whether the price refers to products as they pass through the factory gate or includes delivery and shipping costs have been confirmed to manufacturers as of yet.

Manufacturers are currently two days into a training session in Beijing to familiarise them with how to implement the price undertaking. The fine details of the mechanism are not expected until after the conclusion of that session later this week.

The total size of an import cap on Chinese manufacturers is also unknown. There was speculation that it would be 7GW, around 70% of the EU market. What is known is that caps have been allocated to each manufacturer based on the past 12 months’ shipments. This will restrict changes in the respective market share of each manufacturer.

The regulations are the subject of a legal challenge with the restrictions on imports thought to breach European anti-competition laws. As the price undertaking is a response to dumping, it is thought that some of these do not apply.

Module shipment quota

A key part of the agreement rests with Chinese authorities managing over 100 manufacturers individually set annual quota of module shipments into the EU, which will be monitored by EU authorities. 
PV Tech has been told that in many instances key customers such as large distributors and PV project developers will be told by the manufacturers what shipment (MW) quota they have been allocated for the next 12-months. 
Key to this is an effort to provide transparency and avert possible supply/allocation concerns or counter unfounded claims by possible rivals providing misinformation on rumoured supply constraints to lure buyers. 
Although the quota levels for individual companies are not expected to be released publically by the European Commission it is understood that companies signed-up to the agreement have been provided individual quota levels that respond to company disclosed data on module shipments in 2012 and the first-half of 2013. 
According to data compiled by PV Tech on six leading, publically traded Chinese module manufacturers 2012 shipment data, companies such as Yingli Green, Trina Solar, Canadian Solar, JinkoSolar, JA Solar and Hanwha SolarOne could have been allocated around half of the rumoured 7GW annual cap (see table left). 
Companies such as ReneSola, which have third-party manufacturing agreements in Europe of around 300MW could potentially be able to double its market share in the EU as it would also be able to ship modules into the region from China. 
The data in the table corresponds to the listed companies official total module shipments for 2012 and PV Tech estimations of as to total shipments within the European region. None of the listed companies’ breakout shipments specifically for the EU, while some do not provide regional breakouts in general, though the likes of Trina Solar do.                  
It is hoped that official quota levels for leading manufacturers will become known in due course and an update and expanded quota list provided. 

Additional reporting by Mark Osborne

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

PV Tech Premium
October 27, 2021
As prices rise and component availability remains tight, both solar’s upstream and downstream are rallying behind the common cause of ensuring which projects can go ahead, do go ahead in a timely fashion. Liam Stoker assesses the industry’s efforts to keep the supply chain moving forward.
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.

Subscribe to Newsletter

Upcoming Events

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