"The measure [cutting support] will also lead to a structural weakness in the solar thermal market as customer demand is likely to fall at short notice but needs, as experience demonstrates, years to rebuild. With Germany representing 38% of the European market, the decision's ramifications will reach well beyond Germany."
-- Olivier Drücke, ESTIF president
This measure is based officially on a budget freeze that the German federal parliament put in place but the solar thermal industry trade group ESTIF has nonetheless expressed outrage, noting that the decision hits the solar thermal industry without warning and puts the whole renewable heating sector in danger.
“The measure will also lead to a structural weakness in the solar thermal market”, says ESTIF president Oliver Drücke, “as customer demand is likely to fall at short notice but needs, as experience demonstrates, years to rebuild. With Germany representing 38% of the European market, the decision’s ramifications will reach well beyond Germany.”
The German solar industry association (BSW-Solar) also strongly objected the unprecedented decision, arguing that under the present support scheme, the so-called ‘Marktanreizprogramm’ each Euro invested in solar thermal triggered 8 euros of subsequent investments.
Calling for the German parliament to lift the budget freeze immediately as far as it blocks investments in solar thermal installations, ESTIF says that both in Germany and beyond, the ban on further support payments will endanger many industry players and investments of the past few years that amount to several billion Euros. The upshot is that most of the manufacturers concerned have already received order cancellations; they will have to restructure their business lines, scale down production and consider a reduction in workforce. Many smaller companies that have specialized and now depend on demand for single components may even be forced to file for bankruptcy, they add.
Source: Renewable Energy World
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