Antidumping duties are not the solution for a healthy photovoltaic market.

The U.S. rise in antidumping duties against Chinese photovoltaic modules. This did not really break the development of photovoltaic in the US. Now, the European Union is investigating the Chinese photovoltaic industry to determine whether unfair trade conditions exist. In June of this year, they will make their decision about this subject. Prognos conducted a study, which concluded that, in the case that the European Union will apply antidumping duties of 60%, 190,000 workplaces in Europe will be lost. If the European Union will apply antidumping duties of 30%, 135, 000 workplaces will be lost. The study assumes that the market for big project solar power plants will drop dramatically if the prices for solar modules rise above the current Chinese module prices.

All these assumptions may be right. The target has to be to establish a healthy market environment, which is the only guarantee for creating sustainable market conditions. Antidumping duties are not the tools with which to establish these conditions. These kinds of duties are only destroying the markets. Even for China, it is not possible to subsidize the photovoltaic market in the long term. After finishing the subsidies, the market will be in the same shape as it was, as the German government drastically reduced its feed in tariffs.  Many companies will come into difficulties then. Due to the fact that these companies never did feel real market conditions, they will not be capable of adapting to the markets in an acceptable time. Antidumping duties and subsidies are only postponing the challenge of establishing a worldwide photovoltaic market.

What are the possible solutions? The only possibility to come to healthy market conditions is to start talking to each other. Angela Merkel, the German Chancellor, proposed discussions with the Chinese government during her visit last year to China. I did not see that these discussions started. Additionally, without these discussions, the antidumping duties are on their way to becoming implemented. However, discussing with each other is a precondition to solve problems.

The unpredictable and hesitating politic is in the process of destroying future technology. Even the latest Shell study clearly indicates the leading role of photovoltaic for long-term energy production. In this way, first subsidizing this technology, then destroying and then discovering that it is really needed to build up a long-term energy supply, we pay the bill more than one time.

My clear demand would be the following: The politics and the industry have to discuss on a world-wide scale in order to release the photovoltaic to the free market and to not interfere anymore. I am convinced that in several months, we will see how a healthy economical industry will find its way.

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