The German Economy and Energy Ministry issued a five-point Action Plan today (Oct 17) to address current challenges to the European and German wind energy supply chain. The Action Plan recognises the need to correct unfair competition between European wind energy suppliers and their international competitors. It also pledges to address cyber and data security risks stemming from non-European wind turbines.
The EU wants to increase its wind energy capacity from 220 GW today (Oct 17) to 425 GW by 2030 and 1,300 GW by 2050. As things stand nearly all the wind turbines built in Europe today are European wind turbines - produced by European manufacturers and assembled in Europe.
But there is a very real risk that the expansion of wind the EU wants will be made in China, not in Europe. Chinese wind farm manufacturers are now winning first orders in Europe. In this context the German Ministry for Economy and Energy (BMWK) today issued a five-point Action Plan.
Germany acknowledges unfair competition
The BMWK concludes that there is currently no level-playing field between European wind and solar manufacturers and their international competitors. It stresses the urgent need to restore fair competition and defend Europe's and Germany's wind energy industry.
This comes on the back of the European Commission's decision in April 2024 to start an investigation in Chinese wind turbine suppliers under the EU Foreign Subsidies Regulation (FSR). The BMWK statement stresses the importance of this ongoing investigation. And asks the EU to make full use of its trade defence measures, such as anti-subsidy and anti-dumping measures, where necessary.
Cybersecurity risks stemming from non-European turbines
The Action Plan reiterates Germany's standpoint that onshore and offshore wind turbines are critical energy infrastructure and must be protected accordingly. At the WindEnergy Hamburg 2024 event German State Secretary Philipp Nimmermann had said: "There should be no way that a foreign country or anyone else outside of Germany can influence the steerability of a [German wind turbine]."
The BMWK now commits to applying robust cyber and data security laws to its wind turbines to ensure the highest security standards. This includes widening the list of companies that are subject to cyber security requirements to all companies that can access and control the functioning of modern wind turbines. BMWK wants to collaborate with the wind industry in shaping effective security requirements. It also pledges to inspect and control the use of certain IT-components in wind turbines.
"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 CEO Giles Dickson.
Money, magnets, manufacturing
The Action Plan announces a new industry roadmap for permanent magnets which aims to incrementally reduce Europe's dependencies in this segment. Today almost all permanent magnets used in European wind turbines are imported.
The BMWK further intends to support the ramp up of Europe's wind energy manufacturing capacity. Proposed measures to channel money into new and expanded wind turbine factories include a new support programme for financial guarantees provided by the German state-owned investment bank KfW. Along the German wind energy supply chain the Action Plan estimates an need for guarantees of 16bn by 2030.
The BMWK also calls for closer scrutiny on wind energy projects that benefit from financing provided by public banks and institutions, including the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the German KfW Bank. Germany wants to avoid public money flowing into projects which use Chinese wind turbine technology and run the risk of (a) undermining national and/or European interests, (b) distorting fair competition, (c) unconformity with ESG-rules. This would apply to wind energy projects in the EU as well as in wider Europe.
Read the Action Plan
ABOUT WINDEUROPE
WindEurope is the voice of the wind industry, actively promoting wind energy across Europe. We have over 500 members from across the whole value chain of wind energy; wind turbine manufacturers; component suppliers; power utilities and wind farm developers; financial institutions; research institutes and the national wind energy associations.
For additional questions, please contact:
Christoph Zipf
WindEurope
Press & Communications Manager
christoph.zipf@windeurope.org
+32 492 24 48 38
November 21, 2024
