Chinese companies pull out of solar projects after EU launches subsidy probe

Two firms withdraw bids for Romanian photovoltaic park contracts after Brussels opens investigations under its foreign subsidies regulation

The regulation has been deployed four times since taking effect last year, with all inquiries targeting China

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A subsidiary of Longi Green Energy Technology is one of the Chinese solar firms targeted by the EU on suspicion of using state subsidies to undercut rival bids. Photo: Xinhua

Published: 9:00pm, 13 May 2024Updated: 4:20pm, 14 May 2024

Two Chinese companies have withdrawn from solar projects in Europe after being investigated by Brussels authorities over their alleged receipt of foreign subsidies.

Subsidiaries of Longi Solar and Shanghai Electric were bidding for procurement contracts as part of a photovoltaic park’s construction in Romania.

The European Commission, however, opened two investigations last month under its foreign subsidies regulation following suspicions that the firms had used state subsidies to undercut rival bids.

On Monday, the commission announced that it had closed the investigations after the companies withdrew their bids.

“We are massively investing in the installation of solar panels to decrease our carbon emissions and energy bills – but this should not come at the expense of our energy security, our industrial competitiveness and European jobs,” European Union industry chief Thierry Breton said.

The first solar entity that came under official scrutiny was a consortium involving a German subsidiary of Longi Green Energy Technology Co. Hong Kong-listed Longi is the world’s biggest manufacturer of solar panels and is headquartered in the city of Xian in northwest China.

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