The recent announcement by German wind farm developer Luxcara that it is selecting a Chinese equipment manufacturer for its upcoming plant has caused a storm in Europe. This pivotal moment could determine the direction the European Union’s plans for the green transition will take in the next few years.
After the debut of electric vehicles, it is now the turn of Chinese-made wind turbines to enter European markets. Earlier this week, Luxcara announced that it had selected MingYang Smart Energy to supply its 18.5 MW turbines to power 16 wind turbines to be installed by 2028.
This is an unprecedented move given that European equipment manufacturers have backed the EU’s push for renewable energy from wind farms. GE, Vestas and Siemens have production facilities in Europe and regularly deliver turbines onshore and offshore to meet growing demand in Europe.
Is Chinese equipment better?
In a statement, Luxcara said she arrived before reaching that decision; the company announced an international tender in 2023 and carried out a long and extensive due diligence regarding compliance with EU environmental, social, governance and cyber security regulations.
The Waterkant project is tasked with generating 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 previously reported how MingYang Smart Energy was building wind turbines with higher output and ones that can operate even in typhoons. In comparison, European turbine manufacturers have abandoned plans to produce similarly sized turbines, settling instead for 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 installation costs.
Unfair competition or protectionism?
Germany’s economy ministry confirmed it would closely investigate the deal after Europe’s wind industry lobby argued it gave China access to critical energy infrastructure in Europe. The industry lobby also seeks fair competition for all parties, Nikkei reported.
The move also follows the European Commission’s decision to conduct a preliminary review of possible market distortion by Chinese wind turbine manufacturers. This is likely to further increase trade tensions between Europe and China.
Following the introduction of cheap Chinese-made electric vehicles, the European Union is now considering imposing tariffs on Chinese imports. A similar move for wind turbines could escalate project costs and slow the transition to green energy.
A piece published in Global Times argues that the EU’s actions are akin to trade protectionism and are a response to stiff competition facing Europe’s wind industry from Chinese manufacturers around the world.
Disagreement with Chinese imports could damage the EU’s larger plans to switch to renewable energy sources or increase costs borne by the end customer. Instead, both regions will benefit from cooperation.
All eyes are now on how Germany and the rest of the EU move forward.
ABOUT THE EDITORIAL
Ameya Paleja Ameya is a science writer based in Hyderabad, India. A molecular biologist at heart, he traded the micropipette for writing about science during the pandemic and doesn’t want to go back. He enjoys writing about genetics, microbes, technology and public policy.