The EU’s Net Zero Industry Act comes into force, increasing the competitiveness of photovoltaic production

The Net-Zero Industry Act (NZIA) has been officially published in the Official Journal of the European Union and will enter into force on 29 June in all 27 EU Member States. This is an important milestone enabling Member States to implement the NZIA provisions on public procurement, auctions and other public interventions.

The European Solar Energy Council (ESMC) has adopted the NZIA as a key tool to support a competitive, sustainable and resilient net zero industry in the EU. The timing of this legal framework is critical, especially for PV manufacturers who currently face the challenge of selling modules below production costs. The inclusion of resilience and sustainability criteria in public procurement and auctions is expected to increase the competitiveness of EU-made PV modules.

ESMC Policy Director Žygimantas Vaičiūnas commented: “Today begins a new era for European solar production and other net zero technologies. From now on, the competitiveness of the European photovoltaic production industry is in the hands of the Member States. We expect that they will support sustainable and resilient European-made solar modules in public procurement, auctions and other national programs immediately to increase the competitiveness of solar production in the EU, especially in the current crisis.”

ESMC strongly supports the rapid implementation of NZIA public procurement and auction rules in Member States. At the beginning of May, the ESMC encouraged member states signatory to the European Solar Charter to commit to the quantitative take-up of resilient and sustainable photovoltaic modules in the EU. This initiative has already gained significant support.

To ensure smooth and effective application, the European Commission will adopt an implementing act and establish a Net-Zero Europe platform. This platform will bring together the European Commission, Member States and industry representatives to coordinate actions.

The NZIA, adopted by the European Council on 27 May 2024 after a vote by the European Parliament on 25 April 2024, sets out non-price criteria such as resilience and sustainability and allows for price differentials of up to 20% in public procurement and up to 15% in auctions. It also includes pre-qualification criteria for environmental sustainability and resilience, including considerations for social impact, cybersecurity and on-time delivery.

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