EU preps first energy-transition manufacturing site auctions

The European Commission has set out details of the sustainability criteria which must apply to European Union member state auctions held to allocate manufacturing capacity for energy transition technology.

Secondary legislation published by the commission last week, as part of the bloc’s Net-Zero Industry Act (NZIA), aims to help Europe produce enough energy transition technology – including solar modules, batteries, and heat pumps – to meet 40% of annual demand.

The commission said the legislation sets out the criteria for manufacturing sites to be awarded “strategic project” status and expedited permitting procedures, and also fleshes out non-price related sustainability criteria which must apply to either at least 30% of energy transition equipment manufacturing sites procured in public, EU member state auctions, or to 6 GW of such capacity, per year.

The sustainability criteria, which will come into force this year, address requirements related to issues including responsible business conduct and cybersecurity as well as contributions to sustainable production and European manufacturing and self-sufficiency resilience.

The legislation also lists equipment defined as net-zero technology products and identifies permitted third-country dependencies for some technology.

Trade body SolarPower Europe said, “We expect to see the first [energy-transition manufacturing capacity] auctions under the act in 2026 and encourage [EU] member states to effectively implement the [European] resilience principles, including premiums for solar panels manufactured in Europe. With solar manufacturers in jeopardy, there is no time to lose.”

The NZIA mandates accelerated permitting for all renewable energy and energy storage technology manufacturing sites, setting maximum project authorization periods, based on plant scope and output. The legislation also establishes Net Zero Acceleration Valleys, where member states will be responsible for some environmental assessment evidence collection, to expedite project authorizations.

From pv magazine España.