- With its business hit by COVID-19 related challenges, Energetica has filed for insolvency proceedings
- The company had no access to the Chinese market from where it sources raw materials, during the pandemic related global shutdown
- In September 2021, its incoming orders dropped significantly, leading to a liquidity crunch
- The management wants to continue its operations with a restructuring plan
Austrian solar module manufacturer Energetica Industries GmbH has filed a request with the Regional Court of Klagenfurt to start insolvency proceedings. The company is unable to meet its current payment obligations, which is blamed on disruptions caused by COVID-19.
Since the module maker procures all its raw materials as glass, cells and frames from China, the complete shutdown of the supply chain due to the pandemic meant Energetica’s production dipped. In addition, it wasn’t able to timely conduct adjustments and optimization work on machines as Chinese technicians couldn’t be brought in to check.
There was a ‘massive drop’ in orders in September 2021, due to which its liquidity situation has become quite tense, reads a letter addressed to Energetica’s creditors by AKV Europa, a creditor rights protection association.
AKV Europa said the company’s liabilities amount to approximately €24.9 million ($28 million) and that around 230 creditors and 112 employees are affected by the bankruptcy. Energetica, however, wants to continue its operations with a restructuring plan.
Founded in 2004, Energetica was one of the largest European solar module maker with a dominant position in Austria.
In February 2021, the company launched what it called the ‘1st’ European gapless PV module with 42 5W output and 21.4% efficiency (see Energetica Touts Gapless Technology For Solar Modules).
Even as the world moves on, COVID-19 related disruptions are not yet over. For the solar industry, supply chain challenges have toughened with process material shortages, high module prices and increased freight charges. Both analysts and industry professionals have reported solar projects to be delayed as the market gets into a wait-and-watch mode.
European module manufacturers are disadvantaged to their Chinese competitors as they have to pay higher prices for imported glass from China, which are burdened with import duties while complete module imports are not impacted. Implemented to protect the small European solar glass industry, this duty is making life even more difficult for European panel makers who are much smaller than their Chinese counterparts and thus profit less from economies of scale.
