Meyer Burger, the final producer of photo voltaic modules in Germany, has introduced plans to shut down and relocate to the US, fuelling political debates on whether or not the trade deserves long-term state assist to make sure its survival.
Vice-Chancellor Robert Habeck’s plan to entice photo voltaic module producers again onto German soil by providing beneficiant state subsidies is confronted with a dead-end.
Inside the fractuous authorities coalition, the liberal FDP occasion is obstructing plans to grant a “resilience bonus” to would-be producers, amid a continued price range disaster brought on by a ruling from Germany’s high courtroom final month which blew a €60 billion gap within the nation’s funds.
Now, the Swiss module producer Meyer Burger is threatening to relocate to the US fully, placing 500 jobs in danger.
Following losses of about €133 million in 2023, “the corporate is making ready to shut down module manufacturing in Germany”, Meyer Burger mentioned in a press release on Wednesday (17 January).
Photo voltaic panels are largely manufactured in China today, however Germany continues to be dwelling to some components of the worth chain. Polysilicon, for instance, is produced by chemical substances firm WACKER in Saxony, a former communist state of East Germany.
“Poly”, because the trade calls it, is handled in varied methods earlier than corporations like Meyer Burger assemble the modules at their website, which can be positioned in Saxony.
The area’s model identify? “Silicon Saxony”, a state the place most of Germany’s microchip manufacturing amenities are additionally positioned.
Made in Germany
Saxony is alarmed by Meyer Burger’s plans to relocate.
“This announcement is a wake-up name,” mentioned the state’s power minister, Wolfram Günther, including: “We now want a fast determination in favour of a protected nationwide market section with resilience standards.”
He desires a share of the German market to be reserved for modules “made in Germany”.
Meyer Burger, which claims technological management in manufacturing high-efficiency photo voltaic panels – though some media experiences recommend in any other case – has blamed its woes on unfair international competitors, like dumping.
“So long as the legislator doesn’t create honest competitors regardless of its bulletins, we’re making ready the restructuring in Germany,” mentioned CEO Gunter Erfurt.
Their risk to shut store – removed from the primary one by the corporate – revives outdated fears in Germany, which misplaced a lot of its budding photo voltaic panel trade to Chinese language competitors within the late noughties.
Meyer Burger’s announcement comes because the German authorities struggles to supply enough state assist to retain home manufacturing.
“We’re in talks with Meyer Burger, and we’re very conscious of the troublesome state of affairs of this firm and the PV trade in Germany,” a authorities spokesperson mentioned on Wednesday.
The corporate set a deadline for “the second half of February 2024” and known as for “resilience measures” to safe manufacturing in Germany.
Web-zero trade act
Germany’s woes with photo voltaic PV manufacturing come as Europe debates its personal industrial coverage regulation, the Web-Zero Business Act.
The proposed regulation goals goals to assist manufacturing in Europe of applied sciences seen as important to attain local weather neutrality, like photo voltaic panels, wind generators and warmth pumps.
Negotiations to conclude the regulation are actually coming into the ultimate phases in Brussels after EU member states and the European Parliament each adopted their respective positions.
In these talks, Germany helps the introduction of “resilience tenders within the PV sector to strengthen manufacturing in Europe by way of resilience standards within the context of tenders for renewable energies,” a spokesperson of the financial system ministry instructed Euractiv.
“Our goal is to provide a major proportion of the mandatory transformation applied sciences in Germany and Europe,” the spokesperson added.
Economic system Minister Robert Habeck, and the social democrats (SPD) who lead the federal government, sometimes favour “resilience” subsidies to maintain trade round, while the liberal-minded FDP is opposed.
Konrad Stockmeier, an FDP MP who speaks for the occasion in issues of power, mentioned these subsidies make “the power transition extra expensive, on the expense of taxpayers”. Why construct your individual when you’ll be able to import low cost merchandise from China or India, the argument goes.
In the meantime, the German renewable power federation (BEE) is asking for a fast determination as effectively.
“With a view to strengthen the resilience of our power provide, it’s important to construct up our personal manufacturing capacities or rebuild misplaced capacities,” mentioned Simone Peter, president of the BEE, in late 2023.
For the photo voltaic trade, which means “clear monetary commitments” to “counteract” schemes “from the USA and Asian offensives and to construct up a resilience section,” she harassed.
A package deal designed to help the photo voltaic trade is presently being mentioned within the German parliament. Discussions ought to shut on 21 February, inner paperwork seen by Euractiv present.
[Edited by Nathalie Weatherald and Frédéric Simon]
Learn extra with Euractiv
