Commission closes two in-depth investigations in the solar photovoltaic sector following the withdrawal of the companies from public procurement

On 3 April 2024 the European Commission launched two in-depth investigations under the Foreign Subsidies Regulation (FSR). The two companies involved were ENEVO, which includes LONGi Solar Technologie GmbH, as well as Shanghai Electric UK Co. Ltd. and Shanghai Electric Hong Kong International Engineering Co. Ltd. 

Following the launch, both companies announced their withdrawal from the public procurement procedure. As a consequence of the withdrawal, the Commission will close its in-depth investigations.

The investigations concern a procedure carried out by a Romanian contracting authority (Societatea Parc Fotovoltaic Rovinari EST S.A.) for the design, construction and operation of a photovoltaic park in Romania with a capacity of 454.97 MW, partly financed by the European Union. After a preliminary examination of all notifications, the Commission concluded that an in-depth investigation was warranted as there was sufficient evidence that both companies had benefited from foreign subsidies that distorted the internal market. The investigations had to be completed within 110 days from 4 March 2024, the date on which the Romanian contracting authority submitted the complete notifications.

The first consortium consists of the ENEVO Group and LONGi Solar Technologie GmbH. ENEVO Group, the consortium leader, is a Romanian-based engineering and consulting services provider. LONGi Solar Technologie GmbH is a newly established German subsidiary wholly owned and controlled by LONGi Green Energy Technology Co, Ltd, a leading provider of solar photovoltaic solutions listed on the Hong Kong Stock Exchange.

The second consortium is made up of Shanghai Electric UK Co. Ltd. and Shanghai Electric Hong Kong International Engineering Co. Ltd. Both companies are wholly owned and controlled by Shanghai Electric Group Co. Ltd, a Chinese state-owned enterprise. Shanghai Electric Group Co. Ltd is ultimately owned and controlled by the Shanghai Industrial Supervisory and Management Committee, a state-owned enterprise under the Central People's Government of China.

These are the second and third in-depth investigations launched by the European Commission under the Foreign Subsidies Regulation. In the first one, on 26 March CRRC Qingdao Sifang Locomotive Co. also announced its withdrawal from a public procurement procedure organised by the Bulgarian Ministry of Transport and Communications. 

Read more in the official statement here