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Switzerland Decides Against Supporting Industrial PV Production

published: 2024-06-11 16:45

Switzerland has firmly dismissed any proposals to back the expansion of industrial solar PV. The nation deems such investments excessively costly due to the ongoing reliance on imported raw materials within the industry. Instead, Switzerland is capitalizing on the current low prices resulting from an oversupply in Europe.

Switzerland’s Federal Council has declined to implement industrial policy measures aimed at bolstering or establishing a solar PV industrial chain within the country. The council holds the belief that Switzerland's PV research and development (R&D) sector is already well-positioned and will continue to contribute significantly to the European PV industry. This decision was confirmed in a report endorsed by the council on June 7, 2024. However, the report acknowledges the global PV supply chain's heavy reliance on Chinese production, which is especially prominent in Europe. Switzerland, too, imports a significant portion of Chinese modules.

In 2023, PV module prices in Europe plummeted to a historic low of $0.15/W, while European manufacturing costs reached $0.30/W. The current surge in PV expansion in Switzerland is attributed to the advantageous low prices, driven by an oversupply in the European market. Given this context, the report in German language concludes that subsidizing Switzerland's own PV module production would be costly. Additionally, it notes that Swiss PV module producers would remain reliant on raw materials from abroad, implying that a significant reduction in dependence is unlikely.

The council maintains that the impact of foreign subsidy measures on Switzerland as a business hub is minimal. Consequently, it has decided against implementing any industrial policy measures.

Source: Taiyang News

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