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The German Ministry for Economy and Energy (BMWK) has issued a package of measures that are said to ensure a level playing field between European and international wind turbine manufacturers which, in a few instances, specifically mentions Chinese suppliers.
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Brought through a five-point action plan , published on 17 October, the measures were discussed and agreed upon the day prior at a meeting between the German Minister for Economic Affairs and Climate Protection, Robert Habeck, and representatives of European wind turbine manufacturers and suppliers.
The plan encompasses the cybersecurity of wind turbines, fair competition conditions, reducing dependencies on critical components, financing production ramp-up, and a revision of project financing provided by German and EU banks and institutions.
In terms of competition from Chinese suppliers, the action plan states that more than 90 per cent of permanent magnets, necessary for both onshore and offshore wind turbines, come from China. As the first step to tackle this reliance, the plan calls for drawing up an industry roadmap for permanent magnets by the end of this year or the beginning of 2025, showing how dependencies can be incrementally reduced.
The set of measures also includes revising financing provided by EU and German banks and financial institutions for projects using Chinese wind turbine technology to ensure there is no risk of undermining national and/or European industrial policy interests, distorting fair competition, and unconformity with ESG rules.
In this regard, the action plan says that BMWK will “advocate and solicit the necessary broad support from our partners to ensure that the business strategies of KfW, EBRD, EIB and other export financing instruments are reviewed with a view to financing Chinese companies” .
To increase the capacities and competitiveness of European wind turbine manufacturers, there is a need for hedging and guarantee instruments amounting to around EUR 16 billion by 2030, according to BMWK, which plans to partly address with a new measure to back new and expanded wind turbine factories through a new support programme for financial guarantees provided by KfW.
This measure is part of the German Federal Government’s growth initiative and will be implemented as soon as possible, and the European Investment Bank (EIB) is making a complementary offer, according to the Ministry.
In the action point on ensuring a level playing field, BMWK states it will also advocate to the new EU Commission that existing instruments at the EU level such as the Foreign Subsidies Regulation (FSR) are used effectively, noting that the EU Commission already started an inquiry into Chinese wind turbine suppliers under the FSR (April 2024).
The action plan also includes measures on cyber and data security in wind energy projects, with BMWK planning to expand the list of companies that must meet the cyber security requirements to include all those who have actual control of and access to wind turbines. The Ministry also said the use of certain IT components in wind turbines would be inspected and tested.
Following the release of the new action plan, Europe’s wind energy industry organisation, WindEurope, pointed out that Chinese wind farm manufacturers were now winning first orders in Europe and welcomed the German government’s move to support the European wind energy industry.
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“Well done to the German Government for acting to ensure a level playing field between Europe’s wind energy supply chain and manufacturers from outside of Europe. There is no place in Europe for unfairly subsidised prices or financing terms. Well done to Germany too for acting on the crucial issue of data security. There are hundreds of sensors on a modern wind turbine. Whoever puts them on the components has priceless information and the power the control the functioning of those components and the turbine” , said WindEurope’s CEO Giles Dickson .
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about 1 year ago
The German Ministry for Economy and Energy (BMWK) has issued a package of measures that are said to ensure a level playing field between European and international wind turbine manufacturers which, in a few instances, specifically mentions Chinese suppliers. Brought through a five-point action plan,
