EUROPEAN COMMISSION
Brussels,
C(2009)
In the published version of this decision, some information
has been omitted, pursuant to articles 24 and 25 of Council
Regulation (EC) No 659/1999 of 22 March 1999 laying
down detailed rules for the application of Article 93 of the
EC Treaty, concerning non-disclosure of information
covered by professional secrecy. The omissions are shown
thus […].
Subject:
PUBLIC VERSION
WORKING LANGUAGE
This document is made available for
information purposes only.
State aid N 539/2008 – Germany - LIP – ersol Solar Energy AG
Sir,
1. PROCEDURE
(1)
By electronic notification of 28 October 2008, registered the same day at the Commission,
the German authorities notified to the Commission their intention to provide a regional
investment aid in favour of ersol Group, for the extension of existing production plants
and the construction of a new plant in Thüringen, Germany, under the Guidelines on
National Regional Aid for 2007-20131 (hereafter referred to as “RAG 2007”).
(2)
By letters dated 19 December 2008, 13 February 2009, 20 May 2009 and 8 June 2009 the
Commission invited Germany to submit further information. By letters dated 15 January
2009, 30 January 2009, 25 March 2009, 27 May 2009 and 11 June 2009 Germany
submitted the required information.
(3)
By letter dated 16 June 2009, Germany substantially amended the notification. By letter
dated 16 and 20 July 2009 the German authorities submitted further confirmations.
1
OJ C 54, 4.3.2006, p. 13.
Seiner Exzellenz Herrn Frank-Walter STEINMEIER
Bundesminister des Auswärtigen
Werderscher Markt 1
D - 10117 Berlin
Europäische Kommission, B-1049 Brüssel – Belgien
Telefon: 00 32 (0) 2 299.11.11
2. DESCRIPTION OF THE AID MEASURE
(4)
The German authorities intend to provide regional investment aid to ersol Group to
support the development of production plants for solar wafers and solar cells, and the
construction of a new solar module plant in Arnstadt (Land Thüringen).
(5)
The financial support of the German authorities amounts to a maximum nominal amount
of EUR 55 009 367. The total eligible cost of the notified investment will amount to EUR
525 522 600 in nominal value.
(6)
The investment will take place in Arnstadt in the Land Thüringen, which is a region in the
sense of Article 87(3)(a) of the EC-Treaty with a maximum allowable aid intensity of
30% gross grant equivalent (GGE) under the German regional aid map applicable for
2007-20132.
2.1.
The beneficiary
(7)
The beneficiary of the financial support is ersol Group, through its holding ersol Solar
Energy AG, and its subsidiaries ASi Industries GmbH (hereafter referred to as "ASi") and
a 100% subsidiary still to be incorporated.
(8)
Ersol Solar Energy AG was founded in July 2001 and has its seat in Erfurt, Germany.
Ersol Solar Energy AG is a holding company and as a vertical integrated company
produces silicon, ingots, wafers, solar cells and modules. Each segment corresponds to
one 100% owned subsidiary. The ersol group's silicon business segment was established
in February 2006 after the acquisition of Silicon Recycling Services Inc. (SRS), based in
Camarillo, California. The wafer business segment was established in July 2005 with the
acquisition of ASi in Arnstadt, Germany. ASi manufactures and markets mono-crystalline
wafers for the production of high-efficiency solar cells. The solar cells segment represents
the core business of ersol group. Ersol Solar Energy AG produces the solar cells. The
modules business segment combines the production of thin film modules and the
distribution of crystalline solar modules. Shanghai Electric Solar Energy Co. Ltd (SESE)
belongs with 35% to ersol Group and produces crystalline modules from the monocrystalline cells delivered by ersol Solar Energy AG. Shanghai Electric Solar was founded
in 2005 and has its seat in Shanghai. Ersol Crystalline Modules GmbH which belongs
100% to ersol Group is responsible for the distribution of crystalline solar modules. The
group (50.01%) subsidiary ersol Thin Film GmbH is engaged in the development and
production of silicon thin film solar modules.3 The rest of the ersol Thin Film shares are
owned by a venture capital company.
2
Approved by Commission decision of 8 November 2006, case N 459/2006 (OJ C 295, 5.12.2006, p. 6).
3
www.ersol.de
2
(9)
The figure below reflects the company structure of ersol Group:
(10)
In 2007, ersol Solar Energy AG had a turnover of more than EUR 117 million and had
383 employees. ASi had a turnover of EUR 57 million and 263 employees4. Before being
purchased by ersol group in 2005, ASi was already producing ingots and wafers for the
photovoltaic sector in Arnstadt since 2002.
(11)
In 2008, ersol group was purchased 85% by Robert Bosch GmbH. The latter is an
international technology group with main branches in automotive technology, industrial
technology and consumer goods and building technology. The Solar Energy business
segment in Robert Bosch GmbH is concentrated in ersol Solar Energy AG. According to
Germany, Robert Bosch has no other activities on the photovoltaic market. In 2007,
Robert Bosch GmbH was active in 50 countries and had a turnover of more than EUR 46
billion and more than 270 000 employees5.
2.2.
The notified single investment project
(12)
Ersol Group intends to extend existing establishments for the production of solar ingots,
wafers and cells and to set up a new solar module plant in Arnstadt (initial investment in
the meaning of point 34 of the RAG 2007).
(13)
Total investment costs of the notified projects amount to EUR 525 522 600 million
(nominal value).
4
Annual Report of ersol Group 2007.
5
Annual Report Robert Bosch GmbH 2007.
3
(14)
ASi has two new investment projects, named ASi VII and ASi VIII. They consist of
extending to 450 MWp (nominal capacity6) the existing establishments ASi Wafer Fab2
and ASi Wafer Fab3 for the production of solar ingots and wafers.
(15)
Ersol Solar Energy AG will set up two new plants (Cell Fab3 and Cell Fab4) in Arnstadt
for the production of solar cells with a total nominal capacity of [300-500]∗ MWp. In
parallel the existing plant for the production of solar cells Cell Fab2 will be extended with
[20-40] MWp (nominal)7. Furthermore, ersol Solar Energy AG will set up a new plant for
the production of solar modules with a capacity of [90-110] MWp.
(16)
Germany notified as one single investment project the projects of ASi and ersol Solar
Energy AG presented above. An overview of the projects is presented in the table below.
New investments in Arnstadt
started in 2007-2008
Solar wafers
Start of
works
ASi VII
Aid
amount
(nominal)
in EUR
3/07/2007
New annual production
capacity (nominal) by the end
of 2012
450 MWp
ASi VIII
Extension
Cell Fab2
Solar cells
Eligible
costs
(nominal)
in EUR
Cell Fab3
13/03/2008
525 522 600
55 009 367
[300-500]MWp7
Cell Fab4
Solar modules
Modules 1
[90-110]MWp
(17)
The notified single investment project started on 3 July 2007. The investment is planned
to be completed by the end of 2012 and to reach full production by 2013.
(18)
Ersol Group intends to create around 689 new direct jobs and minimum 500 new indirect
jobs in the region. In the Land Thüringen the unemployment rate of 15.6% is nearly
double as high as the average of 8.2% of the EU-27 and also nearly 50% higher than the
national German average of 10.2%.
2.3.
Financing of the project
(19)
Ersol Group intends to finance the project costs amounting to EUR 525 522 600 using
own resources and a bank loan (EUR […]) in addition to the aid applied for (EUR
6
A nominal capacity is the theoretical capacity of a plant (24h/day, 7 days/7 days). Approximately 80% of the
nominal capacity represents the real capacity produced. Thus, 450 MWp nominal capacities correspond to 360
MWp real capacities produced.
7
Ersol Solar Energy AG has another plant for the production of solar cells in Erfurt (Cell Fab1) that will be also
extended with [10-30] MWp (nominal). Germany confirmed that this project will not be supported by state aid.
However, the capacity created in Erfurt will be taken in consideration for the assessment of point 68 of the RAG
2007.
∗
Covered by the obligation of professional secrecy
4
55 009 367). The German authorities confirm that no state guarantee is awarded for the
loan.
(20)
The German authorities ensure that the aid beneficiaries will make a contribution free of
any public support of at least 25% of the total eligible costs.
2.4.
Eligible costs
(21)
The total eligible costs of the notified project amount to EUR 525 522 600 in nominal
value. A breakdown of the eligible costs is presented in the table below (nominal values).
2008
Eligible costs
[…]
2009
[…]
2010
[…]
2011
[…]
2012
Total (in
EUR)
[…] 522 900 600
(22)
The German authorities confirmed that all eligible costs concern new assets and no aid
will be requested for used equipment.
2.5.
Applied legal basis and regional aid ceiling
(23)
The notified aid is based on two existing block exempted regional aid schemes: the
"Investitionszulagengesetz 2007" (XR 6/2007 - Law on investment premiums 2007)8 and
the "Investitionszulagengesetz 2010" (X 167/2008 - Law on investment premiums 2010)9.
(24)
Arnstadt is an assisted area in virtue of Article 87(3)(a) of the EC-Treaty with a standard
regional aid ceiling for large enterprises of 30% GGE according to the applicable German
regional aid map.
2.6.
Aid amount and aid intensity
(25)
The German authorities limited the regional aid for the notified single investment project
to 10.2% GGE. The German authorities intend to grant the aid in form of an investment
premium amounting to a nominal value of maximum EUR 55 009 367.
(26)
The aid will be paid out in tranches based on the investment costs incurred the year
before. The investment period is 2007-2012. As the first investment costs were incurred in
2008, first payments will start in 2009.
(27)
A breakdown of the aid over the years is presented in the table below (in nominal values).
8
In conformity with Article 8 of Commission Regulation (EC) No 1628/2006 of 24 October 2006 on the
application of Articles 87 and 88 of the Treaty to national regional investment aid (Block Exemption Regulation
for regional aid, OJ L 302, 1.11.2006, p. 29), the German authorities submitted summary information on this aid
scheme (published in OJ C 41, 24.2.2007, p. 9).
9
In conformity with Article 9 of Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain
categories of aid compatible with the common market in application of Article 87 and 88 of the Treaty (General
block exemption Regulation, OJ L 214, 9.8.2008, p. 3), the German authorities submitted summary information
on this aid scheme (published on Commission website:
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?id=3_228962 .
5
2009
2010
[…]
2011
[…]
2012
[…]
Total (in EUR)
[…]
55 009 367
(28)
The German authorities confirmed that the aid for the notified project will not be cofinanced by the EFRD.
(29)
The German authorities confirmed that the notified aid intensity and aid amount will not
be increased in case the investment costs will change over the investment period.
(30)
As the aid is granted automatically on the basis of objective criteria under a legal basis
giving rights to the beneficiaries to receive the aid (existing aid schemes XR 6/2007 and
X 167/2008), the German authorities did not have to reply in writing to an aid application
by the aid beneficiary that the project in principle meets the conditions of eligibility laid
down by the scheme before start of work on the project.
(31)
The aid is granted under the condition that the beneficiary will maintain the investments
in the assisted region for a minimum period of five years after completion of the
investment project.
2.7.
Previous projects in Arnstadt within the last three years
(32)
During 2005-2006, ASi started in Arnstadt four investment projects (named ASi III, IV, V
and VI) for the production of solar ingots and wafers, having a total investment volume of
EUR 63.8 million, for which a total amount of aid of EUR 19.7 million (nominal values)
was granted. However, in the framework of the current notification the German
authorities informed the Commission that the granting authority modified the granting
decision dated from 8 December 2006 for the project ASi VI10 and reduced the direct
grant from 7 million to 3.4 million (based on the GA scheme) (nominal values), so that
the total amount of aid for ASi's previous projects in Arnstadt is reduced from 19.7
million to 16.1 million (nominal values).
(33)
At the same time (2006), ersol Solar Energy Energy AG built a second plant for the
production of solar cells (Cell Fab2) in Arnstadt, with total eligible costs of EUR 45.4
million, for which it received regional aid amounting to EUR 13.5 million (nominal
values).
(34)
The German authorities granted aid for all these projects on the basis of the German
regional aid map 2004-200611, that allowed an aid intensity of 35% GGE for Arnstadt
(Article 87(3)(a) assisted region), and under the existing aid schemes GA-scheme 2004200612 and "Investitionszulagengesetz 2007"13 (for projects started before 2007).
10
By granting decision dated 8 December 2006, the German authorities granted aid amounting to EUR 12 million
to ASi Industries for the investment project ASi VI. The aid was composed out of EUR 7 million in form of a
direct grant (GA scheme) and of EUR 5 million in form of premium incentives (IZ scheme). On 20 July 2009, the
granting authority reduced the direct grant (GA scheme) from EUR 7 million to EUR 3.4 million.
11
Approved by Commission decision of 2 April 2003, case N 641/2002 (OJ C 186, 6.8.2003).
12
Approved by Commission decision of 1 October 2003, case N 642/2002 (OJ C 284, 27.11.2003).
13
Approved by Commission decision of 6 December 2006, case N 357a/2006 (OJ C 23, 1.2.2007).
6
(35)
The scaling down rules of point 21 of the Multisectoral Framework 200214 (hereafter
referred to as "MSF 2002") were respected for the projects undertaken by ASi (ASi IIIVI). The combined aid amount granted for these projects in Arnstadt was below the
applicable individual notification threshold of EUR 26.25 million in force at that time. In
line with point 36 of the MSF 2002, the German authorities submitted summary
information on all these projects, which was registered at the Commission as case
MF 46/200615.
(36)
The aid for the ersol Solar Energy Energy AG second plant for solar cells (Cell Fab2)16 in
Arnstadt was granted separately, at the full regional aid ceiling applicable at that moment.
(37)
In the framework of the current notification, the German authorities informed the
Commission that by amending the aid granting decision for the previous project ASi VI17
in Arnstadt, it is ensured that the notification threshold applicable for all previous projects
in Arnstadt at the moment of granting the aid in 2005-2006 (namely EUR 26.25 million in
discounted value under the MSF 2002 and the German regional aid map in force at that
time) is not exceeded. The German authorities also informed that no aid exceeding this
threshold has been paid out for these previous projects.
(38)
An overview of ASi/ersol's previous projects in Arnstadt is presented in the table below.
Projects in Arnstadt started in 20052006
Start of works
Eligible
costs
(nominal)
in mio.
EUR
Aid
amount
(nominal)
in mio.
EUR
Annual production
capacity (nominal)
ASi III
6/01/2005
[…]
[…]
[…] MWp
ASi IV
23/09/2005
[…]
[…]
[…] MWp
ASI V
23/01/2006
[…]
[…]
[…] MWp
ASi VI
4/08/2006
[…]
[…]
[…] MWp
Cell Fab2
3/08/2006
[…]
[…]
[…] MWp
Total in 2006:
109.3
33.2
[0-200 MWp]
Total after reduction of aid for ASi VI in 2009:
109.3
29.6
Solar wafers
Solar cells
2.8.
General provisions and further commitments
(39)
The German authorities have committed to submit to the Commission:
− on a five-yearly basis, starting from the approval of the aid by the Commission, an
intermediary report (including information on the aid amounts being paid, on the
14
OJ C 70, 19.3.2002, p. 8.
15
Published on http://ec.europa.eu/comm/competition/state_aid/register/msf_2007.pdf
16
Ersol has also another solar cells plant (in Erfurt).
17
See paragraph (32).
7
execution of the aid contract and on any other investment projects started at the same
establishment/plant);
− within six months after payment of the last tranche of the aid, based on the notified
payment schedule, a detailed final report.
3. ASSESSMENT OF THE AID MEASURE AND COMPATIBILITY
3.1.
Existence of aid
(40)
As the financial support given directly to ersol Group will be disbursed by the German
authorities in application of existing aid schemes, it can be considered as given by the
Member State and through State resources within the meaning of Article 87(1) of the EC
Treaty.
(41)
The financial support given directly to the aid beneficiaries will relieve them from costs
which they normally would have had to bear themselves. Therefore the aid beneficiaries
will benefit from an economic advantage over their competitors. By favouring in this way
the aid beneficiaries and their production, competition is distorted or threatened to be
distorted in the sense of Article 87(1) of the EC Treaty.
(42)
The financial support from the German authorities will be given directly to enterprises
producing and selling solar wafers, cells and modules in the photovoltaic sector. The
photovoltaic sector is subject to competition and trade between Member States. Therefore,
the support given is likely to affect trade of products in the photovoltaic sector between
Member States in the sense of Article 87(1) of the EC Treaty.
(43)
Consequently, the Commission considers that the notified measure constitutes State aid
within the meaning of Article 87(1) of the EC Treaty to ersol Group.
3.2.
Notification requirement
(44)
By notifying the measure before putting it into effect, the German authorities complied
with the individual notification requirement expressed in Article 88(3) of the EC Treaty
and in point 64 of the RAG 2007.
(45)
The Commission has therefore assessed the aid measure in accordance with the provisions
of the RAG 2007.
3.3.
Compatibility with general provisions of the RAG 2007
(46)
The project comprises an initial investment within the meaning of the RAG 2007 as it
concerns an extension of existing establishments and setting-up of a new establishment.
The costs eligible for investment aid are defined in line with the provisions of RAG 2007
(see table above) and the rules on cumulation18 are respected.
(47)
Furthermore, the aid beneficiaries have the obligation to maintain the investment in the
region for a minimum of five years after completion of the project. The aid beneficiaries
18
See points 71 to 75 of the RAG 2007.
8
provide a financial contribution of at least 25% of the eligible costs in a form which is
free of any public support. As the aid is disbursed on the basis of aid schemes which are
assumed to fall under the "Block Exemption Regulation for regional aid" and the "General
Block Exemption Regulation", the aid should be in principle in compliance with the
general provisions of the RAG 2007 laid down under points 33 to 59 and 71 to 75.
3.4.
Compatibility with the provisions for aid to large investment projects of the RAG
2007
3.4.1
Single investment project (point 60 of the RAG 2007)
(48)
Point 60 of the RAG 2007 states that in order to prevent that a large investment project is
artificially divided into sub-projects to escape the provisions of these guidelines, such a
project will be considered as a single investment project (hereafter referred to as “SIP”)
when the initial investment is undertaken in a period of three years and consists of fixed
assets combined in an economically indivisible way.
(49)
Member States might be inclined to notify two separate projects because treating them as
separate instead of as a SIP normally allows a higher maximum aid intensity due to the
application of the automatic scaling-down mechanism19.
(50)
Given that the previous investment projects as described above under point 2.7 and the
notified SIP were undertaken within a period of three years, and considering their
immediate geographic proximity and the possible functional and strategic links, they
might have to be considered and assessed as a SIP in the meaning of point 60 of the RAG
2007.20
(51)
There is however no need to investigate this matter further, as the German authorities
limited the notified new aid to 34% of the applicable standard regional aid ceiling (see
paragraph (53)) and limited the previously granted aid21 to the notification threshold (see
paragraph (52)) which is below the maximum allowable that ersol Group could receive if
all projects in Arnstadt would constitute a SIP.
3.4.2
Aid intensity (point 67) of the RAG 2007
(52)
The German authorities limited the aid granted for the previous projects22 in Arnstadt
(with total eligible costs of EUR 109.3 million in nominal value and EUR 102 million in
19
Indeed, for one project above EUR 100 million divided into two projects, the Member State could apply twice the
full regional aid ceiling to the first EUR 50 million of the projects (no scaling down of the applicable regional aid
ceiling required) and twice half of this ceiling to the next EUR 50 million, while for all eligible costs above EUR
100 million the regional aid ceiling is reduced to one third (by 34%).
20
Germany notified at the same time a separate aid project in favour of ersol Group for the production of thin film
modules in Erfurt, which was approved by Commission decision N 538/2008 of 11.2.2009 (OJ C 63, 18.3.2009).
In its decision, the Commission took the view that the investments under the present notification in Arnstadt and
those notified under N 538/2008 in Erfurt do not form a SIP in the meaning of point 60 of the RAG 2007, mainly
since the two projects are based on completely different technologies.
21
See point 2.7 above, paragraph (37).
22
See point 2.7 above.
9
discounted value23) to the notification threshold applicable at the moment of granting the
aid in 2005-2006 (namely EUR 26.25 million in discounted value under the MSF 2002
and the German regional aid map in force at that time).24
(53)
As the eligible costs for the previous projects exceed EUR 100 million, any aid to further
investments forming a SIP with the previous projects should be limited to 34% of the
applicable standard regional aid ceiling (scaling-down mechanism of point 67 of the RAG
2007).
(54)
For the purpose of this decision, in order to cover a worst case scenario where the notified
project would form a SIP with the previously aided projects in Arnstadt, the Commission
also calculated the discounted value of the eligible costs of the notified project back to the
start of the first investment (ASi III). On this basis, the discounted value of the notified
eligible costs is EUR 436 621 305.
(55)
In the hypothesis that, for unforeseen reasons, the eligible costs would be different than
those indicated in the notification, the German authorities confirmed that neither the
maximum aid amount approved in this decision nor the maximum aid intensity approved
in this decision will be exceeded.
(56)
As the German authorities limit the aid intensity for the notified project to 10.2% GGE,
(which corresponds to 34% of the applicable regional aid ceiling of 30% GGE),
corresponding to an aid amount of EUR 55 009 367 in nominal value and EUR
44 535 373 million in discounted value, and as the German authorities cap the aid for the
previous projects to the notification threshold, the notified aid amount and aid intensity is
in line with point 67 of the RAG 2007.
3.4.3
Compatibility with the rules under point 68 of the RAG 2007
(57)
The Commission’s assessment of the compatibility of regional aid to large investment
projects with point 68 of the RAG depends on the market shares of the beneficiary before
and after the investment and on the capacity created by the investment or the performance
of the market. To carry out the relevant tests under point 68(a) and (b) of the RAG, the
Commission has first to establish appropriate product and geographic market definitions.
Relevant product(s) concerned by the project
(58)
The products envisaged by the investment project are crystalline silicon based solar
ingots, wafers, cells and modules. The notification indicates that the crystalline silicon
solar ingots, wafers, cells and modules that ersol Solar Energy AG and ASi will produce
fall under the following product code: NACE Rev 26.11.
(59)
The production process of crystalline silicon solar ingots and wafers by ASi can be
described as follows. The solar grade silicon (ultra pure pieces of raw silicon) is several
times "warmed" and "melted", which is the so-called "crystallization" process. After these
different stages of crystallization the silicon becomes one big block, named crystallized
23
Calculated back to the date of granting the aid for the first investment (ASi III), more specifically to 21 June
2005, using the reference rate of 4.08% applicable at that time.
24
See paragraph (37).
10
silicon “ingot”. The ingots are then sawn into thin wafers. After sawing, the wafers are
cleaned in several stages.
(60)
Following point 69 of the RAG 2007, where the project concerns an intermediate product
and a significant part of the output is not sold on the market, the product concerned may
be the downstream product.
(61)
The silicon ingots, as described in the production process above, are an intermediate
product to produce solar wafers that are also used as an intermediate product for the
production of solar cells. As regards the solar ingots, [80-100%] will be used by ASi to
produce the solar wafers. On the basis of existing long-term supply contracts, ASi will
deliver by the end of the investment (2012) [80-100%] of its output to its mother
company, ersol Solar Energy AG to produce solar cells.25 Consequently, and in light of
point 69 of the RAG 2007, the product concerned by this project is thus the downstream
product solar cells. The largest part (around [70-90%] in 2012) of the solar cells produced
by ersol Solar Energy AG will be sold on the open market.
(62)
According to the German authorities, part of the solar cells (around [10-30%] in 2012)
will be used internally in the group in order to produce solar modules. Consequently,
solar modules are also products concerned.
(63)
The solar modules are not the end product in the photovoltaic industry, as they are the
main component to build an integrated solar energy system. However, the notification
indicates that ersol Group is not making nor selling solar energy systems. The solar
systems are thus not concerned by the notified project.
(64)
Following the above, the Commission will regard for its further compatibility assessment
of this project under the RAG 2007, solar cells and solar modules as the 'products
concerned' by the investment project.
Relevant product market(s)
(65)
Point 69 of the RAG 2007 stipulates that the relevant market includes the product
concerned and its substitutes considered to be such either by the consumer (by reason of
the product's characteristics, prices and intended use) or by the producer (through
flexibility of the production installations).
(66)
The Commission defined already the relevant product market to which solar cells belong
in previous state aid decisions26. In conformity with these decisions there is no reason to
believe that solar cells made from different technologies belong to different markets.
Indeed, prices do not differ considerably between solar cells of different technologies, if
differences in energy performance are taken into account. Moreover, they seem perfectly
substitutable for one another in solar modules or panels. Therefore, the market does thus
not seem to be narrower than the general market where all solar cells are traded. And even
if the market was narrower, silicon based systems constitute the most widespread
technology by large. Moreover, solar cells do not seem to be substitutable with another
25
At the beginning of the notified project (2007) [70-90%] of the solar wafers are used internally for the
production of solar cells.
26
Case N 773/2007 Wacker Schott - OJ C 243, 24.9.2008, p.13; case N850/2006, Q-Cells - OJ C 270, 13.11.2007,
p.5.
11
product. They are the main element of solar modules and cannot be replaced in those
systems by other products. Therefore no indication exists that the market could be broader
than the solar cells market.
(67)
Consequently, for the purpose of this state aid decision the Commission that the view that
the market for solar cells is a relevant product market.
(68)
The Commission defined already the relevant product market to which solar modules
belong in previous state aid decisions.27 The Commission notes that different technologies
are used in the market to produce solar modules. The Commission has no reason to
consider that the solar modules manufactured using different technologies belong to
different product markets. Indeed, the Commission has no indication that prices differ
considerably between solar modules made through different technologies, if differences in
energy performance are taken into account. Moreover, they seem perfectly substitutable
for one another in solar energy systems. Therefore, the market does not seem to be
narrower than the general market where all solar modules are traded.
(69)
Moreover, solar modules do not seem to be substitutable with any other product. They are
the main element of solar energy systems and cannot be replaced in those systems by
other products. Therefore no indication exists that the market could be broader than the
solar modules market.
(70)
This description of the relevant market is in line with merger decisions in the same
sector28.
(71)
Therefore, and for the purpose of this state aid decision, the Commission will consider the
market for solar modules as a relevant product market.
Relevant geographic market
(72)
Point 70 of the RAG 2007 establishes that "for the purposes of applying points (68)(a) and
(b), sales and apparent consumption will be defined at the appropriate level of the
Prodcom classification, normally in the EEA or, if such information is not available or
relevant, on the basis of any other generally accepted market segmentation for which
statistical data are readily available".
(73)
The German authorities consider that the relevant geographic market for solar cells and
modules is worldwide.
(74)
Already in the cases mentioned above (see footnotes 26 and 27), the Commission found
that it is not relevant to define sales of solar cells and modules at the EEA level. In fact,
the available evidence supports the argument of the German authorities that the relevant
geographic market for solar cells and modules is worldwide. This is in particular
demonstrated by the fact that the producers who are manufacturing and selling solar cells
27
Case N 17/2006 First Solar (MSF 2002) – OJ C 259, 26.4.2006, p. 13; case N 409/2006 HighSi GmbH (MSF
2002) – OJ C 77, 5.4.2007, p. 4; case N 863/2006 Avancis (MSF 2002) – OJ C 227, 27.9.2007, p. 1; case
N 199/2008 Intico Solar – OJ C 195, 1.8.2008, p. 2; case N 545/2008 Masdar; - OJ C 9, 14.1.2009, p. 8; case
N 453/2008 Sunfilm – OJ C 106, 8.5.2009, p. 7; case N 538/2008 ersol Thin Film - OJ C 63, 18.3.2009, p. 16;
case C 21/2008 Sovello AG (formerly EverQ) (not yet published).
28
Decision of 27/03/2001 in case N° COMP/M.2367- Siemens/E.ON/Shell/SSG and Decision of 18/04/2001 in
case N° COMP/M.2712 – Electrabel/Totalfinalelf/photovoltech.
12
and modules are active on a worldwide market. In addition, transport costs seem relatively
low compared to the production costs. Different independent studies29 in the photovoltaic
sector also give no indication of barriers to trade.
(75)
In previous state aid decisions (see footnotes 26 and 27), the view was taken that the solar
cells and modules market was worldwide. Also, in previous merger decisions (see
footnote 28), the view was taken, even if it was not necessary to explicitly define the
market as such, that the solar module market was most probably worldwide.
(76)
Consequently, for the purpose of this decision, the Commission considers that the
generally accepted geographic market segmentation for solar cells and solar modules for
which data is readily available, which corresponds to the relevant geographic market, is
the worldwide market.
Market shares of solar cells and modules
(77)
To examine whether the project is compatible with point 68(a) of the RAG 2007, the
Commission has to analyse the market share of the aid beneficiary at group level (ersol
Group) before and after the investment on the relevant market. As the investment of ersol
Group started in 2007 and full production is deemed to be reached in 2012, the
Commission will thus examine the market share of ersol Group on the solar cells and
modules market from 2006 until 2013.
(78)
To estimate the future market shares of the beneficiary group on the solar cells and
modules market after completion of the notified single investment project, the
Commission has to compare the expected sales of these products by the beneficiary group
with the expected sales on the total solar cells and modules market. The German
authorities provided several independent studies30 with forecasts for the evolution of
demand in the photovoltaic sector.
(79)
In 2006, the world solar cells market share of ersol Group was [1-3%] (volume terms) and
the German authorities estimate to reach [1-3%] in 2013. As regards the world solar
modules market shares of ersol Group, in 2006 it reached [1-3%] % in volume terms ([13%] in value terms). The German authorities submit that in 2013, the year after the
achievement of full production for the notified investment, ersol Group expects sales of
solar products corresponding to a total of [600-700] MWp (real capacity), which
corresponds to a market share of [3-5%] in volume terms ([3-5%] in value terms). Even
considering a potential nominal capacity of [800-900] MWp for the whole ersol Group, its
world solar market share would be below 5%.
(80)
The Commission found total market data in the independent studies submitted. However,
since most of the total market data are estimates, the total market data for the photovoltaic
29
30
“Solar generation IV - 2007”, by EPIA and Greenpeace, Brussels, Belgium, 2007; “Profitieren vom
Sonnenrausch”, by Landesbanken Baden-Württemberg, Stuttgart, 22 August 2007; "Solar Energy 2007 –
Sustainability Report", by Sarasin, November 2007; PV Status Report 2006 and 2007 by Joint Research Centre
– technical Notes, European Commission. These studies were all submitted by the German authorities with the
notification.
See footnote 29.
13
products are different depending on the study. Taking into account different scenarios31,
the Commission found that market shares for the beneficiary group will be below 5%
between 2006 and 2013, and thus substantially below the 25% threshold laid down in
paragraph 68(a) of the RAG 2007, a result which is in line with the information provided
by the German authorities.
(81)
As the market shares of the aid beneficiary on both relevant markets (solar cells and solar
modules) are largely below 25%, the Commission considers the notified project to be in
line with point 68(a) of the RAG 2007.
Production capacity
(82)
The Commission has also to examine whether the investment project complies with point
68(b) of the RAG 2007. In this context, the Commission will verify that the average
annual growth rate of the apparent consumption of the product concerned over the last
five years is above the average annual growth rate of the European Economic Areas's
GDP.
(83)
The German authorities provide data which indicates that over the last 5 years the average
annual growth rate of the apparent consumption of the overall photovoltaic sector is
growing faster than the average annual growth rate of the European Economic Areas's
GDP.
(84)
The Commission cross-checked these calculations based on data from several
independent studies. The Compound Annual Growth Rate (CAGR) of the apparent
consumption of photovoltaic products in the EEA for the year 2002 to 2007 is above 30%
both in volume and in value terms. The corresponding CAGR of the EEA's GDP for the
years 2002 to 2007 reached 4.42% in nominal, and 2.36% in real terms32.
(85)
The Commission based its assessment on the apparent consumption in the photovoltaic
sector as a whole in the EEA since it is very difficult to find data on the solar cells and
module market at EEA level. This is mainly due to the fact that the geographic market of
solar cells and modules is considered worldwide.
(86)
The photovoltaic market is considered a good proxy for the solar module market since
solar cells and modules are intermediate products in the overall photovoltaic market and
the market of the intermediate product normally closely follows the growth pattern of the
market of the end product or of the overall market (photovoltaic sector includes normally
wafers, cells, modules and systems). Moreover, the photovoltaic market is growing so
rapidly (over 30%) that even a slightly different growth pattern for the modules market in
the EEA would not deviate such that it would be below 2.36%.
(87)
Therefore, the Commission concludes that the aid measure is in line with point 68(b) of
the RAG 2007.
31
The Commission used the data on worldwide total production in Mwp from the LBBW report from August 2007.
The LBBW report only gives data until 2010. Therefore, the Commission calculated a worst case scenario where
the total market would not grow after 2010.
32
EUROSTAT Economy and Finance page: http://epp.eurostat.ec.europa.eu
14
3.5.
Conclusion
(88)
The aid for the notified project is in line with the general provisions of the RAG 2007 and
respects the conditions of a large investment project as defined therein. Consequently, the
aid measure is compatible with Article 87(3)(a) of the EC Treaty.
4.
DECISION
(89)
The Commission has decided on the basis of the foregoing assessment that the notified
regional aid in favour of ersol Group is compatible with the EC Treaty.
(90)
The Commission reminds the German authorities of their commitment to submit to the
Commission:
− on a five-yearly basis, starting from the approval of the aid by the
Commission, an intermediary report (including information on the aid
amounts being paid, on the execution of the aid contract and on any other
investment projects started at the same establishment/plant);
− within six months after payment of the last tranche of the aid, based on the
notified payment schedule, a detailed final report.
(91)
If this letter contains confidential information, which should not be disclosed to third
parties, please inform the Commission within fifteen working days of the date of receipt.
If the Commission does not receive a reasoned request by that deadline, you will be
deemed to agree to the disclosure to third parties and to the publication of the full text of
the letter in the authentic language on the Internet site:
http://ec.europa.eu/community_law/state_aids/index.htm
Your request should be sent by registered letter or fax to:
European Commission
Directorate-General for Competition
State Aid Greffe
B-1049 Brussels
Fax No: 32 2 296 12 42
15