EDF Renewables said Friday that it had explored all options to save Photowatt, which has been losing between 20 and 30 million euros (dollars) per year.

But after failing to reach a deal with a buyer "the option chosen by management was to close the company," an EDF Renewables spokesman told AFP.

Based outside the eastern city of Lyon, Photowatt employs 162 people.

It was bought by EDF Renewables out of bankruptcy protection in 2012 after having been weakened by cheaper Chinese imports.

It eventually stopped manufacturing of solar panels in favour of concentrating on producing the silicon wafers used to make solar panels.

The EU unveiled an initiative last year to support the few remaining domestic manufacturers of solar panels, noting that the bloc imported the bulk of its needs, with 97 percent of imports coming from China.

It noted solar power is the fastest growing renewable energy sector in the EU and will be key for the bloc achieving its 2030 target of renewables accounting for 42.5 percent of energy production.

Data released Thursday by climate think tank Ember showed that renewables accounted for 47 percent of the EU's electricity production last year, led by solar power.