How does the EU deal with China's reliance on solar?

Rather than blocking Chinese products and reshoring manufacturing, the EU instead invests existing resources in wind energy and hydropower. It thereby offsets the risks emanating from the dependency on China in solar by developing greater capacity in sectors where European companies are still more competitive.

What does the EU-China Energy Cooperation platform say about energy security?

A new report from the EU-China Energy Cooperation Platform aims to strengthen the understanding of energy security in China and the EU in the context of the energy transition. Recent extreme weather events and geopolitical tensions have laid b [Read more...] China leads the world in adoption of solar power and heat pumps, as well as EVs.

How can European policymakers build up domestic production of solar panels?

Solar panels scenario 1: Do everything Ramp up domestic production In this scenario, European policymakers adopt an ambitious – and expensive – industrial policy to build up a potent domestic industrial base for making solar photovoltaics and markedly reduce dependence on imports from China.

Should European companies reshoring the solar supply chain?

The massive subsidies for European firms and entry barriers erected against Chinese photovoltaics significantly lower the competitiveness risk for European manufacturers. In the medium term, reshoring the solar supply chain alleviates the risk of supply disruptions from geopolitical or economic shocks.

What is the EU's energy cooperation with China?

The EU’s energy cooperation with China focuses on accelerating the clean energy transition globally to ensure energy security, economic prosperity, and climate objectives. China's clean energy transition is a prerequisite to successfully implement the Paris Agreement and to provide their citizens with clean, sustainable and affordable energy.

How can China reduce energy security risks?

The energy security risk associated with the dependency on Chinese products is alleviated through investments and reshoring in wind and hydropower, scenario-planning for potential weaponisation, and EU coordination to ensure that those countries more dependent on solar in their energy mix are integrated into contingency planning.