Denmark faces challenges as China dominates solar industry

In the wake of Russia’s invasion of Ukraine, Europe scrambled to reduce its dependence on authoritarian regimes for energy. The European solar industry, long overshadowed by China’s dominance, hoped for a resurgence. Yet, two years later, the sector is still struggling to survive.

China’s vast investments in solar production have driven prices down, putting immense pressure on both Chinese and European manufacturers. Despite some efforts to revive European production, such as Italy’s Enel-backed factory in Sicily, the industry remains fragile. In contrast, the U.S. has imposed high tariffs on Chinese solar imports, protecting its own industry, a move that Solar Power Europe, representing both solar producers and energy companies, opposes.

In Denmark, concerns over energy dependency have grown. Jan Hylleberg, Vice CEO of Green Power Denmark, warned against reliance on Chinese technology, drawing parallels with Europe’s past dependency on Russian gas. He urged for European control over green energy technology and the critical infrastructure of the energy sector.

However, Danish companies like Better Energy, which bought one million Chinese solar panels in 2023, argue that European alternatives are unavailable on a necessary scale. The Danish government, while acknowledging the challenges posed by China’s dominance, is reluctant to impose regulations that mandate the use of European components in solar projects, citing financial constraints and the need to prioritize other areas like wind energy.

As Denmark navigates these complex dynamics, the question remains whether Europe can reestablish its solar industry or continue to rely on Chinese imports.

About Karoline Rosenkrantz Paasch

Karoline Rosenkrantz Paasch is a journalist working with ScandAsia at the headquarters in Bangkok.

View all posts by Karoline Rosenkrantz Paasch

Leave a Reply

Your email address will not be published. Required fields are marked *