# European Emergency "Bulk Purchasing" Chinese Photovoltaic as Electricity Prices Skyrocket Overnight

Ask AI · How can Chinese photovoltaic companies respond to EU policies through localization strategies?

Oil and gas storage facilities. Photo/IC

CCTV News, March 11 (local time), European Commission President von der Leyen delivered a speech to the European Parliament stating that the Middle East situation has impacted the global energy market. Turmoil in the Gulf region has rapidly driven up prices. As long as Europe continues to import large amounts of fossil fuels from unstable regions, it cannot escape vulnerability and dependence.

She pointed out that since the conflict broke out, natural gas prices have risen by 50%, and oil prices by 27%. In just 10 days, European taxpayers have spent an additional approximately 3 billion euros on fossil fuel imports, illustrating the cost of energy dependence.

The cost quickly transmits to electricity prices

International think tank Ember released an analysis report on March 13, indicating that since the US and Israel’s attack on Iran triggered conflict, soaring natural gas prices have caused Europe’s gas-fired power generation costs to increase by over 50%. In the first 10 days of the conflict, the EU spent about 2.5 billion euros extra on fossil fuel imports. Data shows that in the first week of the conflict, the European benchmark natural gas price averaged 45 euros per megawatt-hour, nearly 50% higher than pre-conflict levels; during the first week of March, electricity prices in Germany, the Netherlands, Italy, and Belgium soared to their highest levels of the year.

The report specifically notes that Italy and Belgium, which are highly dependent on Qatar LNG (liquefied natural gas)—36% and 24% of their LNG imports in the first half of 2025 respectively—face significant risks. Meanwhile, Spain, which has rapidly deployed wind and solar energy since 2019, has achieved a “structural decoupling” of natural gas and electricity prices, with natural gas influencing electricity prices for only 15 hours per year, far below Italy’s 89 hours.

Chris Rosslowe, senior energy analyst at Ember, said: “Global conflicts are once again causing natural gas prices to surge, potentially leading to catastrophic economic consequences for import-dependent regions. Combining clean electricity and electrification is the only barrier now and in the future to resist sudden spikes in natural gas and electricity prices.” The report also points out that at current gas price levels, the carbon cost accounts for no more than 10% of final household electricity bills—below the EU average VAT rate—weakening some industry lobbying efforts to suspend the carbon market mechanism.

The report further analyzes the geopolitical background: Iran’s closure of the Strait of Hormuz and attacks on Qatar have increased expectations of global LNG supply disruptions, directly pushing up European gas prices. Although Europe’s overall LNG imports from Qatar account for about 10% of EU LNG imports, countries like Italy and Belgium, which are more dependent, are more affected.

Aggressive procurement: Chinese PV

As electricity grid prices fluctuate sharply, European households are accelerating rooftop solar generation.

Since March, Chinese photovoltaic companies have launched a wave of intensive signing activities in the European market.

On March 17, leading PV companies Tongwei and Longi announced major European module orders on the same day. Tongwei partnered with Poland’s KENO to sign a 1GW TNC 3.0 module supply contract; Longi reached a 500MW BC module cooperation with UK’s CCL Solar, both leveraging high-efficiency N-type technology to deepen their presence in Europe.

Earlier, from March 10 to 12, Longi signed strategic cooperation agreements with three major European partners during the Solar Solutions exhibition in Amsterdam, totaling 600MWh energy storage systems and 100MW high-efficiency modules. Among these, Longi reached an intent to cooperate with Dutch EPC partner Elix on HPBC 2.0 modules, with a clear delivery target of 100MW in 2026.

JinkoSolar also recently secured significant orders. The company signed agreements with Spanish clients and German distributors for nearly 150MW of Tiger Neo 3.0 high-efficiency PV modules in the distributed PV market.

Siyuan Electric signed a memorandum of cooperation on March 11 with Romania’s Winners Holding Investments and Finas Group, aiming for large-scale solar-storage cooperation. The plan is to invest a total of 400 million euros over the next two years, with energy storage systems exceeding 2GWh, including projects in energy storage, grid infrastructure, and hybrid solar-storage projects.

From selling equipment to localization

In this energy crisis, Chinese companies are playing a deeper and more complex role than a few years ago.

The era of simply selling equipment is ending. The EU’s recent draft of the Industrial Accelerator Act (IAA) sends a clear signal: “Made in the EU” requirements will be introduced in public procurement and support programs. Future participation in public budget projects may depend on where equipment is manufactured and key components are produced.

In response to policy thresholds, Chinese companies are adjusting their entry strategies.

Recently, Sungrow announced plans to build Europe’s first factory in Wadowice, Poland, with an annual capacity of 20GW in inverters and 12.5GWh in energy storage systems; China’s Aide New Energy is advancing a 3GW module factory project in Mandeure, France. These projects share a common feature: relocating the final manufacturing stage to Europe to meet origin requirements.

Another approach is joint ventures with local companies. Collaborating with local key enterprises transforms Chinese firms from outsiders into “stakeholders,” making policy adjustments less about external restrictions and more about balancing local interests.

Recently, Skyworth PV and an Italian local company jointly established a joint venture to build a 10MW distributed PV station in Abruzzo, Italy, which is now under construction. In this partnership, Skyworth PV acts as the EPC contractor, responsible for overall project construction and core equipment supply. This joint venture combines Chinese expertise in PV technology, manufacturing, and project financing with local partners’ understanding of the market, regulations, and resources. This “risk-sharing, profit-sharing, complementary advantages” model not only promotes efficient and compliant project development but also provides a replicable and scalable example for Chinese renewable energy companies going abroad.

Von der Leyen also emphasized that the EU will adhere to long-term strategies for developing renewable energy and nuclear power, and is formulating plans to lower energy prices. This suggests that the current surge in Chinese PV purchases may just be the beginning, as Europe’s long-term energy transition needs are opening larger market opportunities.

Beijing News Zero Carbon Research Institute researcher Tao Ye

Editor: Wang Jinyu

Proofreader: Fu Chunyi