EU To Withdraw From Probe Into Chinese Solar Park Construction

European Commission Withdraws From Probe Into Chinese Solar Park Construction

Earlier this year, the United States (US) and European Union (EU) Commission announced launching an inquiry into Chinese suppliers of wind turbines under the new Foreign Subsidies Regulation.  This announcement came as Chinese wind turbine manufacturers pushed hard and won some orders in Europe.

The Chinese suppliers offered cheap turbines and generous finance which distorts the integrity of the European market and disrupts fair competition. In a recent development, the European Commission took note of the withdrawal of two companies for a public procurement procedure. This procedure concerned the construction of a photovoltaic park in Romania. The two companies involved are ENEVO, which includes LONGi Solar Technologie GmbH, as well as Shanghai Electric UK Co. Ltd. and Shanghai Electric Hong Kong International Engineering Co. Ltd.

The withdrawal follows the European Commission’s announcement on 3 April 2024 that it would open an in-depth investigation under the Foreign Subsidies Regulation. As a result of the withdrawal, the Commission will close its in-depth investigation. These investigations concern a procedure carried out by a Romanian contracting authority (Societatea PARC FOTOVOLTAIC ROVINARI EST S.A.) for the design, construction and operation of a photovoltaic park in Romania with a capacity of 454.97 MW, partly financed by the European Union. The estimated value of this contract is around €375 million.

The first consortium consists of ENEVO Group and LONGi Solar Technologie GmbH. ENEVO Group, the consortium leader, is a Romanian-based engineering and consulting services provider. LONGi Solar Technologie GmbH is a German subsidiary wholly owned and controlled by LONGi Green Energy Technology Co, Ltd, a leading photovoltaic company listed on the Hong Kong Stock Exchange.

The second consortium consists of Shanghai Electric UK Co. Ltd. and Shanghai Electric Hong Kong International Engineering Co. Ltd. Both companies are wholly owned and controlled by Shanghai Electric Group Co. Ltd, a Chinese state-owned enterprise specialising in multinational power generation and electrical equipment manufacturing.