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Solar
EU Enacts Net-Zero Industry Act Secondary Legislation to Boost Solar Development

Image: PV magazine


On May 23, 2025, the European Commission formally adopted the secondary legislation of the Net-Zero Industry Act (NZIA). This legislation aims to advance clean technology supply chain autonomy, reduce reliance on third countries (particularly China), and accelerate energy transition through detailed operational frameworks.


The secondary legislation establishes three core measures:


1. Domestic Manufacturing Targets: By 2030, EU domestic production capacity for strategic technologies like PV modules, batteries, and heat pumps must cover 40% of annual deployment needs. Priority will be given to technologies with lower supply chain dependencies. The act specifies critical components including solar modules, energy storage equipment, and electrolyzers.


2. Non-Price Bidding Criteria: Member states must allocate 30% of renewable energy auction capacity (approximately 6 GW annually) to projects meeting "corporate social responsibility," "cybersecurity," and "sustainability & resilience" standards. These criteria prioritize EU-made products through supply chain transparency and low-carbon production requirements.


3. Strategic Project Acceleration: Eligible clean tech manufacturing projects can obtain "strategic project" status, enjoying 50% faster permitting (e.g., 12-month approval for projects exceeding 1GW annual capacity). The legislation also creates "Net-Zero Acceleration Valleys," streamlining environmental assessments through industrial cluster development.


This legislation responds to multiple pressures including energy security crises, geoeconomic competition, and the EU's 2030 target for 80% renewable energy share. Member states must implement the new rules starting in 2026.