EDF Renewables, the renewable energy unit of French energy company EDF, has confirmed the definitive closure of its Photowatt subsidiary in Bourgoin-Jallieu, France.

“The company has not been able to find its financial balance in the long term, particularly in the context of a very competitive global photovoltaic market,” an EDF Renewables spokesperson told pv magazine France.

The spokesperson noted that Photowatt is running a structural deficit of €20 million ($20.8 million) to €30 million per year, despite significant investments by EDF, especially after 2008, to refocus the company on the wafer business.

EDF partly attributed the decision to years of failed negotiations with potential buyers. The last serious prospect was the startup Carbon, which proposed investing €40 million in Photowatt's production tools to transition from wafer production to PV module assembly.

However, Carbon’s proposal failed to gain the support of Photowatt employees. A majority rejected the integration into Carbon, and the company’s social and economic committee (CSE) issued an unfavorable opinion, citing concerns over the fragility of the acquisition plan, effectively ending discussions with Carbon.

“Carbon's plans are based on an investment of €40 million that only calls on external financing that has still not been concluded and therefore not guaranteed,” French trade union Force Ouvrière Isère said in a September 2024 press release. “The employees have always defended their place within the EDF group and have fought on several occasions against non-sustainable takeover projects.”

The 162 employees opted to remain with EDF or face redundancy rather than join a startup, according to a source close to the team who spoke with pv magazine. A meeting with Photowatt management and the CSE is scheduled for Feb. 4 to determine support measures, including reclassification within EDF, voluntary departure, and retirement options.

Photowatt, founded in 1979 as a Philips spinoff for satellite PV cell research, transitioned to industrial production in 1990. However, it has struggled to compete with Chinese manufacturers, despite its 200 MW of capacity. EDF acquired the module maker in 2012.