Der Spiegel was the first to report last week on a European Commission decision stipulating that EU funding instruments, including the European Investment Bank and the European Investment Fund, may no longer be used for energy projects containing inverters from four high-risk countries: China, Russia, Iran or North Korea. The ban also applies to products from companies owned or controlled by entities or persons from those countries, as well as to projects in neighbouring regions such as North Africa and the Western Balkans that are connected to the European electricity grid.
EU clamps down on PV funding linked to Chinese inverters
However, the decision has not been officially announced, nor have the corresponding guidelines been published, leaving open the question of whether they are to apply with immediate effect. "We are currently in dialogue with our members and other relevant stakeholders to formulate a clearer picture of the situation and assess the potential implications of reports that have recently appeared in the media," said Adrien Rodrigues, spokesperson for the industry association SolarPower Europe, speaking to pv Europe. "We will be happy to comment in detail and engage in substantive discussion once there is formal communication and/or detailed documentation from the European Commission on this topic." Sungrow, one of the major Chinese manufacturers affected, also declined to comment when approached, stating that it is still awaiting the EU's official announcement.
A spokesperson for the European Commission confirmed to pv Europe on request that corresponding guidelines for inverters have been developed and apply with immediate effect, with the aim of protecting the EU's critical infrastructure, particularly its electricity supply. "We are facing concrete risks now, which require mitigation immediately." In the medium term, she added, the Cybersecurity Act will offer the possibility of banning the use of inverters from high-risk suppliers in the EU market.
Content of the guidelines
The Commission spokesperson described the guidelines in detail: "The Commission has developed guidance on restricting the use of EU funds for projects involving inverters from high-risk suppliers. The guidance requires: All EU-funded projects to comply with the latest cybersecurity guidelines with the aim to phase out high-risk suppliers.
- For projects connected or planned to be connected to the EU grid, both inside and outside the EU, a transitional period applies to already-originated projects in the pipeline, provided they are notified to the Commission by 1 May and presented for decision before 1 November. All other projects must exclude high-risk suppliers.
- For projects not connected or planned to be connected to the EU grid, inverters from high-risk suppliers must be phased out by 15 April 2027. Targeted derogations are foreseen, for instance in cases of project delays of over one year, or where other overriding political or security considerations apply.
- In light of this guidance, the Commission urges Member States to engage with their promotional agencies and financial institutions to ensure a consistent approach to funding.
- It is important to avoid unfair competition between project funders, with some favouring cheaper but higher-risk suppliers.
- The Commission will also engage with implementing partners and financing institutions as well as partner countries to ensure a coherent approach.
Cybersecurity in focus as solar and storage join KRITIS
High-risk suppliers
On the question of who qualifies as a high-risk supplier: "High risk suppliers are those owned or controlled by companies registered in jurisdiction of a third country in relation to which there is a public statement on behalf of the Union on malicious behaviour in cyberspace against the Union or its Member States. In practice, reports have demonstrated economic security, cybersecurity and hard security risks on EU grids caused by the presence of inverters from China."
Approached by pv Europe, the European Commission declined to comment on when the corresponding documents will be announced or published. (hcn)
