A recent announcement by German wind farm developer Luxcara that it is choosing a Chinese equipment manufacturer for its future site has caused a storm in Europe. This pivotal moment could determine the direction in which the European Union’s green transition plans will go in the coming years.
After the introduction of electric vehicles, it is now the turn of wind turbines made in China to enter the European market. Earlier this week, Luxcara announced that it had selected MingYang Smart Energy to supply its 18.5 MW turbines to deliver 16 wind turbines to be installed by 2028.
This is an unprecedented move, as European-based equipment manufacturers have been driving the EU’s push for renewable energy from wind farms. GE, Vestas and Siemens have manufacturing facilities in Europe and regularly supply both onshore and offshore turbines to meet Europe’s growing demand.
Is Chinese equipment better?
Luxcara said in a statement that it had already come to this decision before; the company launched an international tender in 2023 and carried out a lengthy and extensive due diligence investigation regarding compliance with environmental, social, governance and cybersecurity rules in line with EU regulations.
The project, Waterkant, is designed to generate electricity for 400,000 households in Germany, helping the country achieve its goal of meeting 80 percent of its energy demand with renewable energy.
Interesting technique has previously reported how MingYang Smart Energy is building wind turbines with higher power ratings and that can operate even in typhoons. In comparison, European turbine manufacturers have abandoned their plans to make similarly sized turbines and have instead opted for turbines with much lower power ratings.
For a project like Waterkant, more European-made turbines would be needed to achieve a comparable energy yield, which would also increase installation costs.
Unfair competition or protectionism?
The German Ministry of Economic Affairs has confirmed that it will closely examine the deal after the European wind energy lobby claimed it would give China access to critical energy infrastructure in Europe. The industry lobby also seeks fair competition for all parties, Nikkei reported.
The move also follows the European Commission’s decision to launch a preliminary investigation into potential market distortions by Chinese wind turbine manufacturers, likely to further escalate trade tensions between Europe and China.
Following the introduction of cheap electric vehicles made in China, the European Union is now considering imposing tariffs on Chinese imports. A similar move on wind turbines could increase project costs and slow the transition to green energy.
A piece published in the Worldwide times argues that the EU’s measures amount to trade protectionism and are a response to the fierce competition the European wind industry faces from Chinese manufacturers around the world.
Opposing Chinese imports could harm the EU’s broader plans to transition to renewable energy or increase costs for end customers. Instead, cooperation will help the two regions.
All eyes are now on the future of Germany and the rest of the EU.
ABOUT THE EDITORS
Ameya Paleja Ameya is a science journalist based in Hyderabad, India. A molecular biologist at heart, he traded in the micropipette to write about science during the pandemic and hasn’t looked back. He enjoys writing about genetics, microbes, technology, and public policy.