A recent announcement by the German wind farm developer Luxcara that it is picking a Chinese equipment manufacturer for its upcoming site has caused a storm in Europe. This pivotal moment could define the direction the European Union’s plans for green transition take over the next few years.
After the debut of electric vehicles, it is now the turn of wind turbines made in China to enter the European markets. Earlier this week, Luxcara announced that it had picked MingYang Smart Energy to supply its 18.5 MW turbines to supply 16 wind turbines to be installed by 2028.
This is an unprecedented move given that Europe-based equipment manufacturers have powered 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 the increasing demands in Europe.
Is Chinese equipment better?
In a statement, Luxcara said it arrived before arriving at this decision; the company floated an international tender in 2023 and conducted a long and extensive due diligence exercise covering environmental, social, governance, and cybersecurity compliance in line with EU regulations.
The project, Waterkant, is designed to generate electricity to power 400,000 households in Germany. It will help the country meet its goal of meeting 80 percent of its energy demand with renewable energy.
Interesting Engineering has previously reported how MingYang Smart Energy has been building wind turbines with higher power ratings and ones that can even work in typhoons. In comparison, European turbine makers have dropped plans to make similar-sized turbines and instead have settled on turbines with much lower power ratings.
A project like Waterkant would need more European-made turbines to achieve a similar energy output, which would also increase the installation cost.
Unfair competition or protectionism?
The German economy ministry has confirmed that it will investigate the deal closely after the European wind industry lobby argued that it gives China access to critical energy infrastructure in Europe. The industry lobby is also seeking fair competition for all parties, Nikkei reported.
The move also follows the European Commission’s decision to conduct a preliminary review of possible market distortions by Chinese wind turbine makers. This is likely to increase trade tensions between Europe and China further.
Following the introduction of low-cost electric vehicles made in China, the European Union is now considering imposing tariffs on Chinese imports. A similar move on wind turbines could escalate project costs and slow the transition to green energy.
A piece published in the Global Times argues that the EU’s moves are akin to trade protectionism and in response to the stiff competition faced by the European wind industry by Chinese manufacturers around the globe.
Opposing Chinese imports could harm the EU’s larger plans to switch to renewable energy or increase the cost borne by the end customer. Instead, cooperation will help the two regions.
All eyes are now set on how Germany and the rest of the EU move ahead.
ABOUT THE EDITOR
Ameya Paleja Ameya is a science writer based in Hyderabad, India. A Molecular Biologist at heart, he traded the micropipette to write about science during the pandemic and does not want to go back. He likes to write about genetics, microbes, technology, and public policy.