The European Commission has laid down bidding rules for European Union (EU) member states to reward project bidders on the basis of non-price criteria such as sustainability and resilience in renewable energy auctions. Cybersecurity, and responsible business conduct are some of the other criteria.
Adopted as Secondary Legislation under the Net-Zero Industry Act (NZIA), the new rules will be implemented by member states by 2026. These follow the publication of the NZIA in June 2024 (see NZIA To Be Published In Official Journal By June 2024-End).
Starting from December 30, 2025 these criteria will apply to at least 30% of the volume auctioned annually by every member state or alternatively to a minimum of 6 GW/year from 2026 for renewable energy sources. European solar PV lobby association SolarPower Europe (SPE) says that while this ‘measured’ approach will give certainty of reliable demand for their product to the EU solar manufacturers, it leaves rest of the auction market unaffected, ‘maintaining the necessary pace of solar deployment.’
Member states are at liberty to use this criteria flexibly as pre-qualification or award conditions, guiding national auction design to achieve EU’s clean energy goals. The idea is that they should not simply select the cheapest option.
According to the commission, the new rules clarify which manufacturing projects can benefit from specific provisions in the Act, and scale up the production of net-zero technologies.
The new rules also highlight 3rd country dependencies for specific technologies that will help member states evaluate net-zero technology manufacturing projects eligible for strategic project status.
Adoption of the Secondary Legislation will ensure a consistent selection process across member states.
“Well designed auctions to support the roll out of renewable energy are a vital step for giving a better chance to European manufacturers to compete on the EU market, and to achieve both our resilience and decarbonisation goals,” said the Commissioner for Energy and Housing, Dan Jørgensen.
The NZIA is due for a revision in 2027 to map out trajectory towards 2030 and beyond.
SPE Deputy CEO Dries Acke called it an important step in reshoring solar manufacturing to Europe. “It creates a dedicated market for EU solar products, giving much-needed relief to European solar manufacturing,” he added. “We look forward to seeing the first auctions under the Act in 2026 and encourage Member States to effectively implement the resilience principles, including premiums for made-in-Europe solar panels. With solar manufacturers in peril, there is no time to lose.”
Acke is pointing out at the tough economic conditions faced by European solar PV manufacturers in the face of competition from Chinese manufacturers that enjoy state support and offer cost competitive products (see Another German Solar PV Module Production Fab Closing Down).
