Boosting the EU’s Wind Energy Sector: Addressing Foreign Subsidies and Ensuring Cybersecurity

2023-10-24 17:00:27
This article was originally published in English

An action plan unveiled on Tuesday to boost the EU’s wind energy sector might trigger investigations into foreign subsidies where they are proven to have harmed the European industry.

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The proposals announced by the European Commission aim to protect the European Union’s wind energy sector from unfair international competition. But it is also regarding addressing obstacles specific to the EU such as authorization processes, labor shortages and limited access to raw materials.

In the space of two years, the continent has “lost his leadership” for the benefit of the Asia-Pacific region as the world’s largest wind energy market, explains Kadri Simson, European Commissioner in charge of Energy.

Wind power is a key resource for the EU, but the industry fears that Chinese imports of low-cost wind equipment might significantly weaken European manufacturers.

Didier Reynders and Thierry Breton, European Commissioners responsible for Competition and the Internal Market respectively, recently suggested that the European Union investigate subsidies granted by Beijing to Chinese turbine manufacturers, as it does for electric vehicles.

As we have just announced for electric vehicles, I think it is time to investigate whether these advantageous conditions are due to attractive financing conditions supported by the State for Chinese manufacturers, which would not be possible in the EU“, wrote Thierry Breton in September.

However, a senior EU official said any investigation would require evidence that the existence of Chinese subsidies results in a “economic damage” for European production.

We are in contact with the industry and we are ready to evaluate any evidence they provide” the official said.

The EU has adopted anti-dumping and anti-subsidy instruments in response to increasingly aggressive global competition. When receiving evidence of harm to European industry, the Commission may open an investigation and possibly adopt measures to protect European industry, including through trade sanctions.

The WindEurope trade association welcomes the action plan and believes it is changing “the game for Europe’s energy security“.

It’s good for jobs and growth – and for Europe’s energy security. As Ursula von der Leyen said in her recent State of the Union speech, the future of clean technology in Europe must be made in Europe“, estimates Giles Dickson, Managing Director of WindEurope.

Addressing Wind Farm Cybersecurity Risks

The plan announced Tuesday also aims to reduce security threats posed by the growth of wind farms in Europe by ensuring that auctions – which allow countries to procure clean energy at competitive prices – are redesigned to assess cybersecurity risks.

Kadri Simson believes that the European Union needed to innovate to ensure that “these wind turbines do not collect data in a way that might harm our energy infrastructure“.

We propose that Member States use pre-qualification criteria such as momentum, sustainability and cybersecurity requirements to select qualified contractors to participate in the auctions“, underlines the European Commissioner. “If we spend billions to develop new projects, we should mitigate risks for implementation, for a level playing field and for security“.

We will not close our markets, but we will take care of our security issues“, she adds.

To meet its ambitious target of ensuring that at least 42.5% of its energy mix comes from renewables by 2030, the EU expects wind capacity to increase from 204 GW in 2022 to more than 500 GW in 2030.

The Union wants to support its industry by speeding up authorization procedures, strengthening its skilled workforce and ensuring better access to financing.

In response to the action plan, WWF called on the Commission to do more to ensure that workers in the fossil fuel sector can be reskilled so as not to be left behind in the energy transition.

Member States must seek to maximize their wind potential to contribute to a just and equitable transition. For example, focusing investment in disadvantaged regions, helping workers in fossil fuels and other declining industries, and ensuring economic benefits for local communities“, explains Arnaud Van Dooren, head of climate and energy policy at WWF Europe.

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The Commission hopes that by supporting the European wind industry it can cover its own demand while increasing its share of the global market.

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