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

Why are Chinese photovoltaic companies accelerating their localization efforts in Europe?

Oil and gas storage facilities. Photo/IC

According to CCTV, on March 11th, 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 quantities of fossil fuels from unstable regions, it cannot escape vulnerability and dependence.

She pointed out that since the conflict erupted, natural gas prices have risen by 50%, and oil prices by 27%. In just ten 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 13th, noting that since the US and Israel’s attack on Iran triggered conflict, natural gas prices have surged, causing Europe’s gas-fired power generation costs to increase by over 50%. In the first ten days of the conflict, the EU spent about 2.5 billion euros extra on fossil fuel imports. Data shows that during 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. In 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 highlights that Italy and Belgium, which are highly dependent on Qatar LNG (liquefied natural gas), with 36% and 24% of their LNG imports respectively in the first half of 2025, 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 only 15% of hours where natural gas influences electricity prices—far below Italy’s 89%.

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 current and future barrier to sudden spikes in natural gas and electricity prices.” The report also notes that at current gas price levels, carbon costs account for no more than 10% of end-user 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 heightened expectations of disruptions in global LNG supply, directly pushing up European gas prices. Although Europe’s overall reliance on Qatar imports is relatively low (about 10% of EU LNG imports), countries like Italy and Belgium are more dependent, making them more vulnerable to shocks.

Rapid procurement: Chinese solar companies

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 17th, leading PV companies Tongwei and Longi announced major orders for European modules 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 giants are leveraging high-efficiency N-type technology to deepen their presence in Europe.

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

Jinko Solar has also recently achieved significant breakthroughs. The company has secured important orders in the European distributed PV market, signing supply agreements for nearly 150MW of Tiger Neo 3.0 high-efficiency modules with Spanish clients and German distributors.

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

From equipment sales 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 where key components are produced.

In response to policy thresholds, Chinese companies are adjusting their 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; Yida 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. Such partnerships go beyond traditional buying and selling, transforming Chinese firms from outsiders into stakeholders. When local companies become part of the supply chain, policy adjustments are no longer simple external restrictions but require balancing local interests.

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