According to reports, on March 11 local time, European Commission President Ursula von der Leyen stated during a speech at the plenary session of the European Parliament that the Middle East situation has impacted global energy markets, with instability in the Gulf region rapidly driving up prices. She emphasized that as long as Europe continues to import fossil fuels in large quantities from unstable regions, it cannot escape vulnerability and dependency.
She pointed out that since the outbreak of conflict, natural gas prices have risen by 50% and oil prices by 27%. Within just ten days, European taxpayers have incurred approximately €3 billion in additional costs for fossil fuel imports, which she described as the price of energy dependency.
The cost was quickly passed through to electricity prices. An analysis report released by the international think tank Ember on March 13 indicated that since the conflict triggered by attacks on Iran, soaring natural gas prices have led to a more than 50% increase in the cost of gas-fired power generation in Europe. In the first ten days following the outbreak of conflict, the EU spent an additional approximately €2.5 billion on fossil fuel imports. Data shows that during the first week of the conflict, the European benchmark natural gas price averaged €45 per megawatt-hour, a nearly 50% increase compared to pre-conflict levels. In the first week of March, electricity prices in Germany, the Netherlands, Italy, and Belgium surged to their highest levels of the year.
The report specifically highlighted that Italy and Belgium, due to their high reliance on Qatari LNG, face significant risk exposure, with Qatar accounting for 36% and 24% of their respective LNG imports in the first half of 2025. In contrast, Spain, due to the rapid deployment of wind and solar power since 2019, has achieved a "structural decoupling" of natural gas from electricity prices. The proportion of hours where gas prices influenced electricity prices was only 15% in Spain, far lower than Italy's 89%.
Chris Rosslowe, a senior energy analyst at Ember, commented, "Global conflict has once again caused a spike in natural gas prices, bringing potentially economically catastrophic consequences for import-dependent regions. The combination of clean electricity and electrification is the only barrier against sudden spikes in gas and electricity prices in current and future crises." The report also noted that at current gas price levels, carbon costs account for no more than 10% of final residential electricity bills, which is lower than the EU's average VAT rate, weakening the lobbying arguments from some industries to suspend the carbon market mechanism.
The report also analyzed the geopolitical context: Iran's closure of the Strait of Hormuz and attacks on Qatar have heightened expectations of global LNG supply disruptions, directly pushing up European gas prices. Although Europe's overall imports from Qatar are not high, Italy and Belgium have higher dependency levels, making them more significantly impacted.
As grid electricity prices fluctuate wildly, European households are accelerating the adoption of "rooftop power generation." Since March, Chinese solar companies have initiated a wave of intensive contract signings in the European market.
On March 17, leading solar companies Tongwei Co., Ltd. and LONGi Green Energy Technology Co., Ltd. simultaneously announced major module supply deals in Europe. Tongwei partnered with Poland's KENO to sign a supply agreement for 1 GW of TNC 3.0 modules. LONGi collaborated with UK's CCL Solar on a 500 MW BC module project, with both giants focusing on high-efficiency N-type technology for the European market.
Earlier, from March 10 to 12, during the Solar Solutions exhibition in Amsterdam, LONGi reached strategic cooperation agreements with three core European partners, cumulatively signing deals for 600 MWh of energy storage systems and 100 MW of high-efficiency modules. Among these, LONGi reached a cooperation intent with Dutch EPC partner Elix for HPBC 2.0 modules, confirming the delivery of 100 MW of modules by 2026.
Jinko Solar Co., Ltd. has also recently secured significant orders. The company obtained important orders in the European distributed solar market, signing supply agreements totaling nearly 150 MW for its high-efficiency Tiger Neo 3.0 series modules with clients in Spain and a distributor in Germany.
On March 11, Sieyuan Electric Co., Ltd. signed a memorandum of cooperation with Romania's Winners Holding Investments and Finas Group, agreeing to a large-scale solar-storage collaboration. The plan involves a total investment of €400 million over the next two years, with energy storage system capacity exceeding 2 GWh. Project types include energy storage, grid-supporting infrastructure, and hybrid solar-storage projects.
In this round of the energy crisis, the presence of Chinese companies is deeper and more complex than it was years ago. The era of simply selling equipment is passing. The draft "Industrial Accelerator Act" recently published by the European Commission sends a clear signal: requirements such as "Made in the EU" will be introduced in public procurement and public support schemes. In the future, participation in public budget projects may require meeting bidding conditions related to where equipment is produced and where key components are manufactured.
Facing these policy thresholds, Chinese companies are adjusting their entry strategies. Recently, Sungrow Power Supply Co., Ltd. announced the construction of its first European factory in Wałbrzych, Poland, planning an annual production capacity of 20 GW of inverters and 12.5 GWh of energy storage systems. Dawn Solar is advancing a 3 GW module factory project in Mandeure, France. A common characteristic of such projects is locating the final stage of the manufacturing chain in Europe to meet rules of origin requirements.
Another strategy involves forming joint ventures with local companies. This model of joint venture cooperation with significant local partners goes beyond traditional buyer-seller relationships, transforming Chinese companies from "outsiders" into "communities of shared interest." When local enterprises become part of the industrial chain, policy adjustments are no longer simply "external restrictions" but require weighing potential impacts on local interests.
Recently, Skyworth PV Technology Co., Ltd. established a joint venture with an Italian company to build a 10 MW distributed solar power plant project in Occhia, Abruzzo, Italy. The project has entered the substantive construction phase. Within this joint venture structure, Skyworth PV will act as the main contractor, fully responsible for the overall construction of the plant and the supply of core equipment. The joint venture structure effectively integrates the advantages of the Chinese partner in solar technology, product manufacturing, and project financing with the Italian partner's deep understanding of the local market, regulations, and resources. This cooperative model of "shared risks, shared benefits, and complementary advantages" not only promotes efficient and compliant project execution but also provides a replicable and scalable integration template for Chinese new energy companies expanding overseas.
In her speech, von der Leyen also emphasized that the EU will adhere to its long-term strategy of developing domestic energy sources like renewables and nuclear power and is formulating plans to reduce energy prices. This suggests that the short-term "buying spree" for Chinese solar products may only be the beginning, as long-term demand from Europe's energy transition is opening up a larger market space.