With the EU strongly promoting domestic manufacturing, what will become of photovoltaic products going global?

On March 4, 2026, the European Commission officially released the draft of the Industrial Acceleration Act in Brussels. This move aims to promote the decarbonization of European industry, enhance the overall competitiveness of EU industries, and facilitate the "Made in Europe" rollout of key products such as photovoltaic modules. This proposed legislation has been submitted to the European Parliament, the Council of the European Union, and other common legislative bodies of the EU, and is now in the negotiation and refinement stage.

The European Photovoltaic Industry Association (EPIA) immediately issued a statement emphasizing the significance of the draft bill. EIA's Deputy CEO, Dries Acke, called the Industrial Acceleration Act a "watershed moment in the development of European industrial policy," noting that the act will, for the first time, grant EU member states the right to prioritize the use of EU-made photovoltaic and energy storage systems in certain public tenders, government procurement processes, and industry support programs.

For decades, EU industrial policy has been primarily formulated by member states themselves, with the EU's main function being defensive: controlling through state aid and antitrust enforcement to ensure that member states' measures do not distort competition. The Industrial Acceleration Act will mark a decisive shift. Originally named the "Industrial Decarbonization Acceleration Act," the bill was renamed in 2025 and expanded its scope, now forming a core pillar of the EU's Clean Industry Agreement's industrial framework.

Dries Acke stated that the bill focuses on EU-made photovoltaic inverters and cells, promoting the return of core photovoltaic components to the EU while avoiding overly stringent entry requirements in the initial stages of policy implementation. This approach effectively supports the development of European manufacturers without hindering the large-scale adoption of grid-parity photovoltaic energy. However, he emphasized that the definition of "Made in Europe" must be strictly limited to products manufactured within the EU and the European Economic Area.

Meanwhile, Dries Acke expressed concerns about the bill's provisions regarding battery storage systems. He pointed out that the draft's requirements are not only more stringent but also take effect too early, potentially hindering the urgent expansion of battery storage systems. Battery storage is crucial for improving the utilization rate of renewable electricity in Europe and reducing reliance on expensive fossil fuel imports, while accelerating the development of the energy storage industry is a necessary measure for the EU to achieve its two core objectives: energy security and industrial competitiveness.

Dries Acke also emphasized the importance of simplifying the legislation, stating that only by streamlining the provisions can the legislation be effectively and uniformly implemented across EU member states. Reducing administrative burdens is also a necessary prerequisite for maintaining the development goals of the EU single market and ensuring the smooth implementation of the Accelerated Industrialization Act. Alongside the release of this legislation, the EU also simultaneously published supporting documents including the Annexes, Supplementary Assessment Forms, Impact Assessment Reports, Summary of Impact Assessment Implementation, and a statement of facts.

This legislation introduces a series of comprehensive measures to comprehensively support the enhancement of EU industrial capacity and accelerate the decarbonization of strategic industries. Key measures include: simplifying the approval process for decarbonization projects in the industrial sector and energy-intensive industries; adding dual requirements of "Made in Europe" and low-carbon attributes to government procurement, public tenders, and industry support programs for specific products and net-zero technologies; and setting stricter entry conditions for foreign direct investment in emerging strategic industries, specifically covering equity ratio restrictions, mandatory formation of EU joint ventures, local R&D investment requirements, intellectual property licensing regulations, labor employment standards, and obligations to source raw materials locally. The bill also explicitly designates dedicated industrial acceleration zones, where projects can receive priority access to resources such as financing, raw material supply, skilled personnel matching, and energy infrastructure support, while also enjoying additional policy benefits such as streamlined approval processes. Furthermore, the bill amends the existing Net Zero Industry Act, adding product origin requirements to government procurement, renewable energy tenders, and industry support programs, while simultaneously improving cybersecurity regulations and high-risk supplier management rules. Notably, battery energy storage systems are formally included in the updated renewable energy tender requirements.

Regarding photovoltaic (PV) projects, the draft bill explicitly stipulates that within three years of the Industry Acceleration Act's entry into force, all PV projects' government procurement, renewable energy tenders, and related industry support programs must use PV inverters, solar cells, and similar core components manufactured in the EU. Regarding battery energy storage systems, the legislation sets out phased "Made in Europe" implementation requirements: one year after the legislation takes effect, the entire battery energy storage system must be manufactured in the EU, and systems with an installed capacity exceeding 1 MWh must be equipped with a battery management system manufactured in the EU; three years after its implementation, such systems must also integrate battery cells manufactured in the EU and include at least one other core component manufactured in the EU.

On March 6, a spokesperson for my country's Ministry of Commerce, in response to a reporter's question regarding the EU's Industrial Acceleration Act, stated that these practices constitute serious investment barriers and institutional discrimination, potentially violating the Most Favored Nation (MFN) principle, and further increasing the uncertainty for Chinese companies investing in the EU. China expresses serious concern about this.

China believes that the EU's use of the pretext of developing relevant EU industries and promoting green transition to build walls and engage in protectionism is not only counterproductive but will also undermine rules, fair competition, and disrupt the stability of global supply chains.

Practice has proven that protectionism does not enhance competitiveness; openness and cooperation are the right path to development. China and the EU are important economic and trade partners, sharing broad common interests and positive cooperative achievements in addressing climate change and promoting green transformation. We urge the EU to take the lead in abiding by WTO rules, return to a fair, transparent, and non-discriminatory cooperation track as soon as possible, and refrain from going further down the path of rule-breaking and protectionism. China will closely monitor the relevant legislative process, carefully assess its impact on China's interests, and resolutely safeguard the legitimate rights and interests of Chinese enterprises.