EU investigation into Chinese wind turbine exporters could lead to higher costs, slow down clean energy projects in bloc, analysts say

Curtailing Chinese supplies ‘can only result in European builders being left with options that are more expensive’, The Lantau Group’s David Fishman says

Chinese manufacturers ‘don’t really live off of the EU market’: Trivium China’s Cosimo Ries

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A wind farm in China’s northern Hebei province. Like solar panels, EVs and lithium-ion batteries, China saw robust growth in exports of wind turbines last year. Photo: Xinhua

Published: 6:20pm, 10 Apr 2024Updated: 8:58am, 11 Apr 2024

An investigation into subsidies received by Chinese wind turbine manufacturers by the European Union (EU) could saddle the bloc’s renewable project developers with high costs and slow down their decarbonisation efforts, while the impact on Chinese firms could be limited, analysts said.

“Since the basis of the complaint is that the Chinese manufacturers are offering turbines that are too cheap, and with overly attractive financing terms, removing that option can only result in European builders being left with options that are more expensive, and with less attractive financing terms,” David Fishman, a manager at power sector consultancy The Lantau Group, told the Post on Wednesday.

Fishman’s comments followed an announcement by EU Commissioner Margrethe Vestager on Tuesday that a new investigation would be opened into the state subsidies received by Chinese suppliers of wind turbines. The investigation will initially cover “the conditions for the development of wind parks in Spain, Greece, France, Romania and Bulgaria”.

This is the third China-facing investigation initiated by the bloc under its new Foreign Subsidies Regulation, a tool adopted last year. The previous two investigations targeted a Chinese train maker and solar panel manufacturers on suspicions that they are using state subsidies to undercut competitors in public procurement contracts.

EU policymakers “had better be very transparent and clear with their constituents that it’s a trade-off they’re comfortable with”, Fishman said.

China, the world’s largest wind power producer, has emerged as a major exporter of wind turbines in recent years, as global demand for clean power surges and its home market faces overcapacity in the clean energy sector.

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