The European Commission has launched an inquiry into suspected illegal subsides for Chinese wind turbine producers, amid concerns that state subsidies are allowing Chinese producers to undercut domestic turbine manufacturers. This move comes as the EU looks to accelerate its clean energy transition, with fears that the domestic industry could be decimated by cheap imports. The investigation will focus on wind farm developments in Spain, Greece, France, Romania, and Bulgaria, where Chinese suppliers are offering turbines at half the price of domestic manufacturers, with generous financing terms. The Commission is looking to prevent a repeat of what happened in the solar panel industry, where less than 3% of panels installed in Europe are produced in Europe due to Chinese dominance.
Executive vice-president of the European Commission, Margrethe Vestager, announced the inquiry during a lecture at Princeton University, stating that the Commission is investigating conditions for wind park developments across Europe. Vestager highlighted that China has dominated the solar panel industry through foreign investment, technology acquisition, and massive subsidies to domestic suppliers before exporting cheaply. The EU does not want the same scenario to occur in the wind energy sector, electric vehicles, or essential chips. The Commission is concerned about possible distortions of competition due to unfair advantages obtained through foreign subsidies, and under the Foreign Subsidies Regulation, they have the power to investigate and impose redressive measures.
The Brussels-based trade association WindEurope has expressed support for the Commission’s inquiry, stating that Chinese wind turbine manufacturers are already encroaching on the EU market by offering turbines at much lower prices than European manufacturers. WindEurope’s director, Giles Dickson, highlighted the incredibly generous financing terms being offered by Chinese suppliers, such as up to three years deferred payment, which is not possible without unfair public subsidy. The group fully understands the Commission’s rationale and believes that measures need to be taken to address this issue and protect domestic wind turbine producers from unfair overseas competition.
The EU executive has also launched a similar anti-subsidy investigation into the import of battery electric vehicles (BEV) from China, indicating a broader effort to address concerns about unfair competition and market distortions. The Commission is committed to ensuring a level playing field for all players in the market, as well as protecting the interests of domestic industries. The probes into wind turbine and electric vehicle imports from China are part of a larger strategy to safeguard European industries and promote sustainable and competitive economic growth in the clean energy sector.
The probe into Chinese wind turbine subsidies is part of a wider effort by the European Commission to protect domestic industries and ensure fair competition in the internal market. The Commission has the power to investigate the existence and effects of foreign subsidies and impose redressive measures if a distortion of competition is identified. With concerns about Chinese suppliers undercutting domestic manufacturers in the wind energy sector, the Commission is taking action to prevent a repeat of what happened in the solar panel industry, where European production was decimated. By addressing unfair advantages gained through foreign subsidies, the Commission aims to support the growth of domestic industries while promoting a sustainable and competitive clean energy transition in Europe.
Overall, the European Commission’s inquiry into suspected illegal subsides for Chinese wind turbine producers is a significant step towards protecting domestic manufacturers and ensuring fair competition in the wind energy sector. By investigating the conditions for wind park developments across Europe and addressing concerns about foreign subsidies, the Commission is working to prevent market distortions and safeguard the interests of European industries. With Chinese suppliers already encroaching on the EU market by offering turbines at lower prices and generous financing terms, the Commission’s probe aims to level the playing field and promote a sustainable and competitive clean energy transition.
