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					</table><p>The U.S. has initiated an anti-circumvention inquiry to determine whether crystalline silicon solar cells and modules manufactured in Ethiopia and Vietnam using Chinese components are circumventing existing antidumping (AD) and countervailing duty (CVD) orders on Chinese solar products.</p>
<p>The investigation by the<a href="https://www.commerce.gov/" target="_blank" rel="noopener"> U.S. Department of Commerce</a> follows a petition filed by First Solar, Hanwha Q CELLS USA, Talon PV, Swift Solar, Great Lakes Solex PR, DYCM Power, Suniva, and Silfab Solar.</p>
<p>The underlying AD and CVD orders cover crystalline silicon photovoltaic cells and products containing such cells, including modules, laminates, panels, and certain building-integrated materials.</p>
<p>The companies alleged that solar cells and modules are being manufactured in Ethiopia using Chinese parts and components and then exported directly to the U.S., or that cells manufactured in Ethiopia are being assembled into modules in Vietnam using additional Chinese inputs before export to the U.S., allegedly to avoid existing duties.</p>
<p>Commerce will examine whether the products are of the same class or kind as those covered by the orders, whether Chinese merchandise represents a significant portion of their value, and whether the assembly or completion conducted in Ethiopia and Vietnam is minor or insignificant.</p>
<p>In determining whether assembly or completion in a third country is minor or insignificant, Commerce will consider investment, research and development, the nature of production, the extent of production facilities, and the value added by processing in that country. It may also consider trade and sourcing patterns, corporate affiliations, and changes in imports into the third country.</p>
<p>Commerce found that the petition by the U.S.-based solar companies contained sufficient supporting information to initiate the inquiry. It plans to use Customs and Border Protection import data to select Ethiopian respondents and then seek information on their production and shipments to the U.S.</p>
<p>Unless the inquiry is rescinded or extended, Commerce intends to issue its preliminary determination within 150 days of the notice’s July 17, 2026, publication date.</p>
<p>In February 2026, Commerce <a href="https://mercomindia.com/us-to-retain-antidumping-duties-on-polysilicon-imports-from-china-taiwan" target="_blank" rel="noopener">concluded</a> that revoking the prevailing AD and CVD on crystalline silicon photovoltaic product imports from China and Taiwan would lead to a recurrence of dumping.</p>
<p>In the same month, the U.S. also <a href="https://www.mercomindia.com/us-slaps-102-72-antidumping-duty-on-chinese-active-anode-material-imports" target="_blank" rel="noopener">determined</a> AD and CVD duties of up to 102.72% and 66.86%, respectively, on imports of active anode material from China.</p>


US Starts Tariff Circumvention Probe into Solar Imports from Ethiopia


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					</table><p>Vietnam-based solar solutions company <a href="https://www.toyo-solar.com/" target="_blank" rel="noopener">TOYO</a> has announced an expansion of its solar cell production facility in Ethiopia, increasing its capacity from 2 GW to 4 GW.</p>
<p>TOYO will invest $47 million to expand production. The company is planning to lease a 28,000 sq m facility in Hawassa, Ethiopia, adjacent to its existing automated production site.</p>
<p>The company has completed the construction of the first phase of the solar cell facility, which has a production capacity of 2 GW. TOYO is conducting equipment installation, testing, and trial runs at the site.</p>
<p>Formal production is expected to begin early in the second quarter of 2025.</p>
<p>TOYO said the expansion is in response to global demand for its high-performance solar cells, having received significant interest and orders for its solar cells even before completing the first phase of the manufacturing facility.</p>
<p>The expansion is scheduled to commence in April this year, with construction expected to be completed by July. The company expects to begin production at the expanded facility by August 2025.</p>
<p>The company has also completed the first phase of construction of its solar cell plant in Phu Tho Province, Vietnam. The facility has a capacity of 4 GW and commenced commercial production in October 2023.</p>
<p>According to the latest International Energy Agency’s World Energy Outlook, manufacturing capacity for solar modules is <a href="https://www.mercomindia.com/global-solar-module-manufacturing-by-2030-iea" target="_blank" rel="noopener">growing</a> rapidly and has the potential to surpass 1,200 GW per year by the end of this decade.</p>
<p>Also, according to the report, solar manufacturing is currently highly concentrated in five countries, led by China, accounting for over 90% of global capacity. The other four are Vietnam (5% of the global market), India (3%), Malaysia (3%), and Thailand (2%). The next five leading solar manufacturers – the United States, Korea, Cambodia, Türkiye, and Chinese Taipei – each account for around 1% of the global total, as does the European Union.</p>


TOYO to Expand Solar Cell Capacity in Ethiopia by 2 GW

<p>Saudi Arabia’s <a href="https://www.acwapower.com/" target="_blank" rel="noopener noreferrer">ACWA Power</a> has won two 125 MW solar projects in Ethiopia in the country’s first round of solar program under Public-Private Partnership (PPP).</p>
<p>The projects will be located in Dicheto, in the Afar region, and Gad, in the Somali region of the country.</p>
<p>The projects which were tendered in April 2019 are estimated to power 750,000 homes and offset 320,000 tons of carbon dioxide per year, according to a press release issued by the company.</p>
<p>ACWA Power and Ethiopia Electric Power (EEP), the state-owned electricity producer, and the Ministry of Finance recently signed a Letter of Intent (LoI) for the development of these projects.</p>
<p>The parties are expected to sign a long-term power purchase agreement (PPA) for the projects at $2.52/kWh for 20 years by the end of 2019.</p>
<p>ACWA Power emerged as the winner out of 12 pre-qualified bidders. While these solar projects will be ACWA Power’s first venture in Ethiopia, the company currently has footprints in Africa with solar assets in Morocco, South Africa, and Egypt, fuelling the power needs of respective communities.</p>
<p>“We welcome the opportunity to help (Ethiopia) realize its incredible renewable resource potential and deliver significant economic, social, and environmental value,” said Paddy Padmanathan, Chief Executive Officer of ACWA Power.</p>
<p>In 2018, ACWA <a href="https://mercomindia.com/acwa-power-develop-100-mw-solar-south-africa/" target="_blank" rel="noopener noreferrer">started</a> the construction of the 100 MW Redstone concentrated solar power project in South Africa’s Northern Cape Province.</p>
<p>ACWA boasts of an aggregate capacity of 1,668 MW of renewable assets across the United Arab Emirates (U.A.E), South Africa, Jordan, Egypt, and Morocco.</p>
<p>This 250 MW project falls in line with the Ethiopian government’s plan to decrease energy requirement shortfalls and increase the electricity generation capacity of the country from 4,300 MW presently to 17,300 MW by 2020.</p>
<p>In May 2019, Mercom reported that Ethiopia <a href="https://mercomindia.com/afdb-support-ethiopias-renewable-sector/" target="_blank" rel="noopener noreferrer">received</a> a grant of $995,000 from the Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB) to help bolster the country’s renewable energy framework.</p>
<p>Image credit: Longi Solar</p>


ACWA Power to Develop 250 MW of Solar Projects in Ethiopia

<p>Ethiopia’s quest to roll out a sustainable procurement framework for independent power producers has received a boost in the form of a grant of $995,000 made by <a href="http://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/sustainable-energy-fund-for-africa/">the Sustainable Energy Fund for Africa (SEFA)</a>, managed by the African Development Bank (AfDB).</p>
<p>The SEFA grant is expected to encourage private investments into hydropower projects through Ethiopia’s renewable energy program. It is likely to strengthen the government’s capacity to undertake bankability and technical analysis, including feasibility assessments of projects in the hydro priority pipeline.</p>
<p>The grant also provides for environmental and social impact assessments, resettlements action plans, and preparation of bidding documents for hydro projects.</p>
<p>“A well-structured procurement framework is crucial in mobilizing the investments necessary to achieve universal energy access in Africa. The SEFA program will boost private IPPs participation, and spur investments into the Ethiopian hydropower sector,&#8221; said Wale Shonibare, the bank’s acting Vice President for Power, Energy, Climate Change and Green Growth.</p>
<p>The program also complements the assistance provided by the bank’s institutional IPP support project, as well as the bank-financed Mekele-Dallol and Semera-Afdera Power Supply for Industrial Development and Access Scale-up Project,” Shonibare added.</p>
<p>Ethiopia has a vast but untapped renewable energy potential. Under a long-term development strategy, the government has outlined a National Electrification Program (NEP), targeting universal access by 2025 through a 65% on-grid, and 35% off-grid combination. The goal is to transform the country into a regional energy hub by 2030.</p>
<p>The Ethiopia Renewable Energy Program, supported by the SEFA grant, is in line with the country’s Growth and Transformation Plan (GTP II) 2015/16 – 2019/20 and with the NEP targets. It also aligns with the Bank’s Energy Sector Policy (2012), the <a href="https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/Brochure_New_Deal_2-En.pdf">New Deal on Energy for Africa</a>, especially focusing on renewable energy and early-stage project finance.</p>
<p>Ethiopia, along with a host of other African nations, needs major power sector transformation. <a href="https://mercomindia.com/world-bank-climate-action-africa/">Recently</a>, the World Bank committed $22.5 billion to Africa for climate adaptation and mitigation in the next five years.</p>


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