Until recently, ‘Made in Europe’ was just a label. While it was useful for marketing purposes, it lacked any hard, normative content. This may soon change. On 4 March, the European Commission published a proposal for the Industrial Accelerator Act,[1] stipulating that, from 2027 onwards, the Union origin of components will be a prerequisite for participating in renewable energy auctions, accessing public funding, and for being eligible to participate in public procurement procedures.
The slogan ‘Buy European’ could become a concrete instrument for supporting local production and controlling foreign investment.
The Industrial Accelerator Act aims to support EU production
One of the reasons for the IAA is that the share of manufacturing in total GDP declined from 17.4% to 14.3% between 2000 and 2024. The aim is to raise it to 20% by 2035.
It is worth remembering that, in the area of net-zero technologies, global supply chains for items such as batteries, photovoltaics and inverters – which are of significant importance for the Union’s energy infrastructure – are overwhelmingly located outside EU territory.
The European Commission highlights this issue, viewing it as a structural risk to security of supply that requires a systemic response. The instrument for achieving this will be the ‘Made in Europe’ principle, which, according to the proposal, will be a legal category.
This explains the choice of legal form – a regulation rather than a directive. A regulation is binding in its entirety and directly applicable in Member States, without the need for transposition into national law, leaving no room for ‘soft’ implementation.
Union origin – what does this actually mean?
After reading the proposal, the first and most important question that arises is: how is ‘Union origin’ defined by the IAA?
The origin of products and components is determined in accordance with the Union Customs Code.[2] Thus, we are dealing with non-preferential rules of origin that are applied in customs procedures. However, the issue is not the manufacturer’s place of registration or the country of final assembly, but rather the place of the last ‘substantial processing’ – a rigorous concept that is well established in customs practice but new in the context of RES auctions and public procurement.
Products from third countries with which the EU has concluded free trade agreements, or that are parties to the Agreement on Government Procurement (GPA), are treated as products of Union origin.
However, the Commission may exclude a given country from this privilege if it deems that such privilege would threaten the security of supply, or if the country has failed to treat Union products or entities on an equal footing with its own. Therefore, a trade agreement does not provide full guarantees. This real risk should be considered when negotiating long-term contracts.
Three areas where Union origin may become a legal requirement
RES auctions – an end to auctions based solely on price
Price is of paramount importance in renewable energy auctions today. The IAA will change that. Member States organising auctions for the most relevant net-zero technologies, such as battery energy storage systems, solar photovoltaic technologies, electrolysers and wind technologies, will be required to include Union origin criteria for components in their bid evaluation process. These criteria will be given a combined weight of between 15% and 30% of the award criteria. These requirements will apply to at least 40% of the volume auctioned per year or alternatively to at least 8 GW per year.
Only exceptions to this condition will be possible if cost differences exceed 20% or delays exceed seven months, as evidenced by documented data.
Regardless of origin requirements, cybersecurity requirements will apply to 100% of each auction’s volume, without exception. High-risk suppliers will not be permitted to be involved in the supply or maintenance of control systems, SCADA systems or remote access systems in renewable energy installations.
Public procurement – new requirements for contracting authorities
Public procurement accounts for 15% of the EU’s GDP, and the IAA intends to leverage this.
Once the regulation comes into force, contracting authorities and contracting entities procuring selected net-zero technologies will be required to apply Union origin requirements for key components. This will not be an additional criterion, but a fundamental requirement built into procurement procedures.
When can this obligation be waived? Only if ensuring compliance with the requirements would result in disproportionate costs or technical incompatibility in the operation and maintenance of the product. However, ‘disproportionate costs’ are precisely defined: the cost difference must exceed 25%, and this must be evidenced by objective, transparent data.
In practice, this means that the contracting authority or entity will not be allowed to simply select a cheaper bid and consider the matter closed. They will have to demonstrate that the price difference is sufficiently large and provide specific arguments to support this.
Public support schemes – new conditions for beneficiaries
The IAA draws on national public support schemes, such as subsidies, grants and funding for households and businesses.
Member States will have to design these schemes so that Union origin requirements cover a significant proportion of their budgets. Implementing bodies, including government agencies, funds and offices, will need to amend their beneficiary selection regulations.
The IAA as an opportunity for the EU and Polish economies
The IAA is intended to digitalise and accelerate permitting processes (one-stop digital service point, deadlines, elements of ‘tacit approval’ at intermediate stages of projects to decarbonise energy-intensive industries). It is also a real opportunity to build an effective protective barrier against competitive pressure.
However, we should consider today what the long-term effects on supply chains might be, and how we can avoid throwing the baby out with the bathwater.
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[1] COM(2026)100
[2] Regulation (EU) 952/2013