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The EU intends to bolster its wind energy capacity significantly, targeting 425 GW by 2030 and 1,300 GW by 2050. To safeguard against potential over-reliance on Chinese wind technology and ensure energy security, the EU prioritizes domestic production. President von der Leyen emphasized the importance of a European-led clean tech industry. The Wind Power Package, endorsed by 26 EU Member States, includes measures to fortify the European wind sector and guard against trade distortions and unfair subsidies benefiting foreign manufacturers. Action Point 12 underscores the commitment to activate trade defense instruments if necessary to protect against unfair competition and uphold the integrity of the internal market.
In light of the above, the EU Commission has initiated an inquiry into Chinese wind turbine suppliers under new regulations, to curb unfair trade practices and protect Europe’s energy security and technological leadership. The investigation will focus on markets in Bulgaria, France, Greece, Romania, and Spain. Executive Vice-President Margarethe Vestager emphasized the importance of safeguarding competitiveness and economic security, highlighting the need to prevent the loss of European industries to subsidized foreign competition. Typically, Chinese wind turbines are priced 50% lesser in Europe compared to Europe-made turbines. With deferred payments effectively, Chinese manufacturers are in a position to offer their turbines for free till the wind farm operator records 3 years of revenues.
“We fully understand the Commission’s rationale,” said WindEurope CEO Giles Dickson. “Chinese wind turbine manufacturers are offering much lower prices than European manufacturers and incredibly generous financing terms with up to 3 years deferred payment. You can’t do that without unfair public subsidy. What’s more the European manufacturers aren’t allowed to offer deferred payment like that under OECD rules.”
