EC probes Chinese solar project bidders in Romania

The European Commission (EC) today launched two in-depth investigations under the Foreign Subsidies Regulation, which became effective in July last year, for two bidders in a Romanian tender for the delivery of a 110-MW solar park.

The Commission is investigating two consortia, one made up of Romania’s ENEVO Group and Longi Solar Technologie GmbH, a newly established German subsidiary of Chinese solar panel manufacturer Longi Green Energy Technology Co Ltd (SHA:601012), and another composed of two subsidiaries of Chinese state-owned enterprise Shanghai Electric Group Co Ltd.

The tender, launched by Societatea PARC FOTOVOLTAIC ROVINARI EST SA, relates to the design, construction and operation of a solar project in Romania, partially financed by the EU Modernisation Fund.

The Commission said that there are sufficient indications that the two bidders have been granted foreign subsidies that distort the internal market. It will further assess whether the alleged foreign subsidies may have allowed the companies to submit an unduly advantageous offer in the tender.

The EC has 110 working days from March 4, when both consortia submitted a complete notification, to take a decision. It has three options for a resolution: accept commitments by the company if they remedy the distortion, prohibit the award of the contract, or issue a no-objection decision.

Thierry Breton, Commissioner for Internal Market, said: “Solar panels have become strategically important for Europe: for our clean energy production, jobs in Europe, and security of supply. The two new in-depth investigations on foreign subsidies in the solar panel sector aim to preserve Europe’s economic security and competitiveness by ensuring that companies in our Single Market are truly competitive and play fair.”

As per the Foreign Subsidies Regulation, companies must notify their public procurement tenders in the EU when the estimated contract value exceeds EUR 250 million (USD 269m), and when the company received at least EUR 4 million in foreign financial contributions from at least one third country in the three years prior to notification.

(EUR 1 = USD 1.075)

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