The EU Passes this Bill and Introduces Measures to Support Local Photovoltaic Manufacturing

The European Parliament and the Council of the European Union have agreed on new regulations to promote the development of solar manufacturing in the EU amid concerns about the viability of Europe's solar manufacturing industry.

Under the Net Zero Industry Act (NZIA), EU member states will be required to apply non-price pre-qualification and award criteria for renewable energy projects, including responsible business conduct, cybersecurity, data security and on-time and comprehensive delivery of projects. ability.

The new standards will apply to at least 30% of member states' annual tender volumes, and industry leaders are optimistic they will encourage the uptake of more renewable power projects.

The bill also regulates the procurement of net-zero technology products, including solar modules, as EU member states can only purchase 50% of modules through tenders from a single country each year.

In addition, the European Parliament and the Council have agreed on a fast-track licensing procedure. Going forward, the construction or expansion permit period for manufacturing projects with a capacity of more than 1GW will be 18 months. For projects smaller than 1GW, the time limit is only 12 months. However, strategic projects will have shorter durations.

The bill will also promote the development of net-zero acceleration valleys, which are defined as areas with "a concentration of several companies working on a certain technology." The valleys are intended to create clusters of net-zero industrial activity, boost the EU’s attractiveness as a location for manufacturing activity and further simplify administrative procedures for establishing net-zero capacity.

The bill is temporary and needs to be endorsed and formally adopted by the European Council and European Parliament institutions.

SolarPower Europe said it was "good news" that the bill would be revised in the coming years, but reiterated the need for immediate action to protect European solar manufacturing.

The European Parliament voted on November 21, 2023 to adopt their position on the NZIA legislation, which will seek to return manufacturing to the EU for renewable energy technologies such as solar photovoltaics, battery storage and wind energy.