Romania is targeted by an EU investigation for the development of a photovoltaic park. The project financed by European money is made by the Chinese

The European Commission launched on Wednesday, two in-depth investigations aimed at the potential role of distorting the market by subsidizing some foreign bidders, more specifically Chinese, in a public procurement procedure in Romania.

According to a press release from the community executive, the public procedure was launched by a Romanian contracting authority (Societatea PARC fotovoltaic Rovinari Est SA) for the design, construction and operation of a photovoltaic park in Romania, with an installed power of 110 MW. This project is partially financed from the EU Fund for modernization.

At the end of last year, the company Parc Fotovoltaic Rovinari Est SA, a company owned in equal shares by Complexul Energetic Oltenia and OMV Petrom, put out to auction the contracts for the construction of four photovoltaic parks with a total capacity of 450 MW.

At the beginning of 2024, the Rovinari East Photovoltaic Park Society announced that it had received no less than eight bids at the auction for the construction of the four photovoltaic parks, according to data from the Electronic Public Procurement System (SEAP).

One of the offers came from the association of Enevo Group (Leader) with LONGI Solar Technologie and another offer came from the association of Shanghai Electric Hong Kong International Engineering Company Limited (Leader) with Shanghai Electric UK Company Limited.

According to the Foreign Subsidy Regulation, companies are required to notify their public procurement tenders in the EU when the estimated value of the contract exceeds 250 million euros and when the company has been awarded foreign financial contributions of at least 4 million euros from at least one third country in the three years preceding the notification.

The preliminary investigation reveals irregularities

Following the preliminary examination of all submissions, the Commission considered that it was justified to initiate an in-depth investigation for two bidders, as there were sufficient indications that both had received foreign subsidies distorting the internal market.

“During the in-depth investigation, the Commission will further assess the alleged foreign subsidies and obtain all necessary information to determine whether they may have allowed the companies to submit an unduly advantageous bid in response to a tender. Such a bid would could cause other companies that participate in the public procurement procedure to lose sales opportunities”, emphasizes the community executive.

The first consortium investigated by the community executive is composed of the Enevo group and LONGi Solar Technologie GmbH. Enevo Group, the leader of the consortium, is a provider of engineering and consulting services based in Romania. Longi Solar Technologie GmbH is a newly established, wholly owned and controlled German subsidiary of LONGi Green Energy Technology Co., Ltd, which is a major supplier of solar photovoltaic solutions listed on the Hong Kong Stock Exchange. Both LONGi Solar Technologie GmbH and LONGi Green Energy Technology Co., Ltd. are engaged in the development, manufacture and maintenance of solar wafers, cells and modules.

The second consortium investigated is composed of Shanghai Electric UK Co. Ltd. and Shanghai Electric Hong Kong International Engineering Co. Ltd. Both companies are 100% owned and controlled by Shanghai Electric Group Co. Ltd, a state-owned enterprise of the People’s Republic of China. It is ultimately owned and controlled by the Shanghai State-Owned Industry Supervision and Management Committee, a state-owned entity that is subordinate to the Central People’s Government of China. Shanghai Electric UK Co., Ltd. and Shanghai Electric Hong Kong International Engineering Co., Ltd. are the world’s leading providers of industrial solutions in the fields of energy, manufacturing and digital intelligence integration. They provide wind, solar and hydrogen storage services, as well as an integrated generation, network, charging and storage process.