- The European Commission (EC) has started two investigations to evaluate the possible subsidization from third-party countries.
- The EC said the initiated investigations were at the request of two consortia.
The European Commission (EC) has started two investigations to evaluate the possible subsidization from third-party countries. The contractors are interested in the EUR 347 million solar PV project by OMV Petrom and CE Oltenia in Romania, with 70 per cent financing from the Modernization Fund.
The EC said the initiated investigations were at the request of two consortia. Both consortia include companies controlled by parent groups in China.
However, there are a total of eight bidders who placed offers to become contractors in the project developed by OMV Petrom and CE Oltenia. Moreover, Romania’s Enevo Group, with LONGi Solar Technologie GmbH, is the first consortium to file a notification.
Chinese state-owned Shanghai Electric UK Co. Ltd. and Shanghai Electric Hong Kong International Engineering are the second. According to an EU official, the total contract was worth about 375 million euros ($404 million).
These are the second and third investigations under the EU foreign subsidies regulation, which has allowed the European Commission since July 2023 to assess whether subsidies enable companies to submit overly advantageous offers.
Furthermore, the China Chamber of Commerce to the EU explained it was gravely concerned by the investigations and that the regulation seriously distorted the playing field level for Chinese companies operating in the EU.
The Commission justified its opening of in-depth investigations. It stated that there were sufficient indications that both Chinese firms had been granted foreign subsidies that distorted the EU single market. The Commission has until August 14 to take a decision.