Cancellation of EU Anti Dumping Duty on Solar Panels
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Since the year 2013, the European Union established trade restrictions on Chinese solar panels. This removed a large percentage of Chinese solar panels from the European market and consequently led to increased cost of panels. The high cost of such products resulted in slow growth of the renewable energy sector. |
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The gradual growth was due to lack of continuous investments from both foreign and local investors because of low solar energy demand.
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These repercussions made 250 organizations and companies, within European membership, to write a letter to the European Commission President. The letter was written in May 2018 to Jean-Claude Junker requesting him to terminate the restrictions. The letter emphasized the damaging factor of such restrictions and claimed that the restrictions curtailed the European PV sector. |
The signatories also claimed that the restrictions were against the objectives of the commission. Every EU member country has been requested to ensure that the share of renewable energy reaches 20% by the year 2020.
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The restrictions finally came to an end on 3rd September 2018 opening the European market to solar panels manufactured in China. The cancellation of both anti-dumping duty and anti-subsidy restrictions will definitely make renewable energy more affordable and increase its supply due to the low cost of Chinese solar panels. This also implies that costs for European solar projects will further be reduced and the projects will be brought closer to grid-parity. |
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This move is also expected to increase the solar jobs and deployment as well as nudge forward the energy transition in Europe. The CEO of SolarPower Europe, James Watson, said that removing the trade measures will make solar energy the cheapest form of electricity in many EU countries. This means that many solar companies are responding positively towards the cancellation of restrictions.
Therefore, the cancellation of anti dumping duty restrictions spells a better future for green energy in Europe.