In a recent major decision, the European Parliament adopted the Net Zero Industry Act (NZIA), an amendment that will have far-reaching implications for PV localization and pricing mechanisms. This action by the European Parliament is not only aimed at increasing the EU's self-sufficiency in renewable energy technologies, but also at reducing dependence on non-EU countries, especially China, in the PV supply chain. The passage of this bill will have a significant impact on the global landscape of the PV industry.

1. Content and objectives of the Act

The Net Zero Industry Act (NZIA) is a major EU legislation for the renewable energy technology manufacturing industry. The main goal of the bill is to move onshore manufacturing of renewable energy technologies such as solar photovoltaics, battery energy storage, wind power, etc. to the EU. This decision was supported by 376 votes in favor, 139 votes against, and 116 abstentions. Through this amendment, MEPs expanded the scope of the draft legislation to cover the entire supply chain, including parts, materials and machinery used to produce net zero technologies.

2. Detailed description of the regulations and rules

NZIA proposes to adopt non-price criteria and prequalification standards in public tenders for renewable energy, especially to increase the requirements for local content in the EU. This means that local content requirements will be introduced in public procurement projects and technologies. These regulations may result in some technologies produced outside Europe being unable to participate in public tenders. The European Solar Manufacturing Industry Council (ESMC) praised this, believing that it would help reduce dependence on third-country products, especially photovoltaic products from China. However, this has also caused some concerns that this may pose a risk to the solar industry and EU energy security.

In addition, non-price criteria in NZIA include product sustainability and the ability to resist global supply insecurity. These criteria will be evaluated to determine whether they meet the requirements of government procurement. The European Solar Industry Alliance proposes that such a fundamental shift in public tendering and procurement should be carried out gradually and tailored to the specific supply chain starting point of solar photovoltaics.

3. Impact of the implementation of the Act

The implementation of this bill is expected to have a significant impact on the global landscape of the photovoltaic industry. First, it will reduce the EU's dependence on photovoltaic products from countries such as China, while promoting the development of Europe's own photovoltaic manufacturing industry. Second, by introducing non-price standards, the EU will be able to encourage more sustainable and localized technological development. This may also lead to a reorganization of the international photovoltaic market, especially for international suppliers that rely on the EU market.

The EU's move also shows its determination to seek greater autonomy in the global photovoltaic industry, which is of great significance for promoting global energy transformation and achieving climate goals. However, it also brings some challenges, including how to maintain market openness while protecting local industries, and how to maintain fair competition in international trade while promoting local manufacturing.