The European Commission has revealed a comprehensive action plan aimed at safeguarding Europe’s leading position in the global wind industry, asreported by Reuters on October 24. The plan outlinesseveral key strategies, including accelerating the deployment of wind energy through streamlined permitting processes, enhancing investment and financing in European wind energy manufacturing, and ensuring a level playing field internationally. The latter involves vigilant monitoring of potential unfair trade practices that could favor foreign wind manufacturers. he commission introduced the Net-Zero Industry Act and the Critical Raw Materials Act to bolster domestic manufacturing capacity for net-zero technologies. Under the Net-Zero Industry Act, the EU aims to domestically produce at least 40% of its clean energy technology requirements by 2030.

European turbine manufacturers have faced challenges, including operating losses in 2022 due to record-high inflation, increased financing costs, and heightened competition from foreign producers. This declining profitability has also led to reduced investment decisions by EU wind power companies since 2021. To address this situation, the recent action plan involves scrutinizing foreign subsidies, particularly focusing on China. According to the European Commission, Chinese competitors often offer prices 20% lower than those of European manufacturers. Despite this, the EU has not yet found “clear evidence” to initiate a formal investigation into China’s wind power industry. Notably, in October, the EU initiated an anti-subsidy probe into EU imports of battery electric vehicles (BEVs) from China.

Sources:

https://www.reuters.com/world/europe/eu-announces-plan-support-struggling-wind-farm-industry-2023-10-24/

https://ec.europa.eu/commission/presscorner/detail/en/ip_23_5185

https://www.bloomberg.com/news/articles/2023-09-25/wind-power-package-for-europe-to-be-presented-in-october#xj4y7vzkg

https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)754553