The European Union's decision to restrict the use of public and European funds for the purchase of solar inverters made in China may lead to increased costs for new solar projects in Latvia. This could be particularly noticeable for households installing solar panels with the help of European funding.
Inverters are a key component of solar power plants, converting direct current into alternating current for feeding into the grid. Chinese manufacturers hold about 70% of the European market. European counterparts are 20–40% more expensive.
The European Commission justifies the measures by citing cybersecurity risks: internet-connected devices from 'high-risk countries' (including China) may receive remote updates and potentially be used to interfere with the operation of energy systems. The restrictions are preventive in nature and apply to projects with EU funding.
Industry representatives warn that this will lead to increased costs and a slowdown in the commissioning of new capacities, especially in countries reliant on subsidies. The EU acknowledges the potential impact on the pace of renewable energy development but prioritizes the security of energy systems.
