EU Wind Industry Warns Germany Over Large Chinese Turbine Deal

(Bloomberg) —

Europe’s wind trade warned Germany {that a} deal for 16 Chinese language offshore wind generators dangers fostering unfair competitors for native suppliers and poses a menace to the area’s vitality safety.

Earlier this month, German asset supervisor Luxcara GmbH agreed that Ming Yang Good Power Group Ltd. would provide the generators — the most important mannequin available on the market — for its 270-megawatt Waterkant challenge within the North Sea, because of be put in in 2028.

Giles Dickson, chief government officer of foyer group WindEurope, mentioned the deal marks a blow to the EU’s clear tech sector, but in addition creates dangers for the area’s vitality safety. It additionally prompted scrutiny from Berlin.

Wind generators sometimes have round 300 sensors, which can be utilized to transmit necessary knowledge, whereas the efficiency of the infrastructure — such because the angle of the blades — might be managed by a overseas get together.

“The European offshore wind provide chain was prepared — is prepared — to ship a turbine made in Europe to this challenge,” Dickson mentioned in an interview. “The European Union and Germany and every other international locations constructing offshore wind farms have gotten to determine if wind vitality is a strategic sector earlier than it’s too late.”

Lately, the EU has tried to “stage the enjoying discipline” vis-a-vis Chinese language producers, together with by introducing pre-qualification standards on sustainability and cyber safety for renewables auctions.

The EU has additionally used a brand new instrument — the overseas subsidies regulation — to probe wind farms throughout Europe which have Chinese language involvement.

Dickson mentioned Chinese language producers are benefiting from subsidies, but in addition deferred funds of up-to three years, giving them an unfair benefit on world markets. European producers can solely provide such a profit for one yr underneath OECD guidelines.

BloombergNEF estimates that onshore turbine costs have been 67% cheaper in China in comparison with the remainder of the world for contracts signed within the second half of final yr.

Just one challenge in Europe has purchased Chinese language generators beforehand — Italy’s “nearshore” wind farm in Taranto. But WindEurope calls that an “exception” because it has barely a tenth of the capability of the Waterkant challenge, and the generators have been initially ordered from a German producer that went bankrupt.