EU Probes Chinese Wind Turbine Suppliers Over State Subsidies
POWER & RENEWABLE ENERGY

EU Probes Chinese Wind Turbine Suppliers Over State Subsidies

Days after the European Commission announced an investigation into Chinese solar firms allegedly benefiting from state subsidies to secure contracts in Europe, the regulatory body has shifted its focus towards Chinese suppliers of wind turbines. The probe, conducted under the new Foreign Subsidies Regulation, aims to scrutinize the alleged unfair trade practices and market distortion caused by Chinese wind turbine manufacturers.

The investigation, akin to the recent case involving two Chinese solar firms securing contracts in Romania, targets the practices of Chinese wind turbine suppliers across Bulgaria, France, Greece, Romania, and Spain. The European Union seeks to ascertain whether the influx of low-priced turbines from China is disrupting the integrity of the European market.

Under the Foreign Subsidies Regulation, the Commission possesses the authority to investigate and address the impact of foreign subsidies on competition. Once evidence of market distortion is established, the Commission can impose corrective measures. Should the inquiry demand further scrutiny, an in-depth investigation with an 18-month deadline may ensue.

China has denounced the probe as discriminatory, while Margarethe Vestager, the Commission's Executive Vice-President for Competition, expressed concerns over the potential threat posed by subsidized Chinese wind turbines to the EU's economic security. Vestager emphasized the necessity to avoid repeating past mistakes that led to the decline of the EU's solar manufacturing industry.

Giles Dickson, CEO of WindEurope, highlighted the significant price disparity between Chinese and European wind turbines, attributing it to allegedly unfair subsidies. European manufacturers, constrained by OECD rules, are unable to match the generous financing terms offered by their Chinese counterparts, including up to three years of deferred payment.

Chinese wind turbines are reportedly being offered in Europe at prices up to 50% lower than those of European-made turbines, with deferred payments effectively rendering them free until wind farm operators generate three years of revenue, according to WindEurope. The EU, aiming to bolster its wind energy capacity, has set ambitious targets for 2030 and beyond.

Last October, the EU unveiled a comprehensive action plan to enhance the competitiveness of Europe's wind energy industry, including measures to provide financial support and streamline permitting processes. The Foreign Subsidies Regulation stands ready to be invoked should subsidies enable wind turbine manufacturers to gain undue advantage in EU procurement procedures.

Days after the European Commission announced an investigation into Chinese solar firms allegedly benefiting from state subsidies to secure contracts in Europe, the regulatory body has shifted its focus towards Chinese suppliers of wind turbines. The probe, conducted under the new Foreign Subsidies Regulation, aims to scrutinize the alleged unfair trade practices and market distortion caused by Chinese wind turbine manufacturers. The investigation, akin to the recent case involving two Chinese solar firms securing contracts in Romania, targets the practices of Chinese wind turbine suppliers across Bulgaria, France, Greece, Romania, and Spain. The European Union seeks to ascertain whether the influx of low-priced turbines from China is disrupting the integrity of the European market. Under the Foreign Subsidies Regulation, the Commission possesses the authority to investigate and address the impact of foreign subsidies on competition. Once evidence of market distortion is established, the Commission can impose corrective measures. Should the inquiry demand further scrutiny, an in-depth investigation with an 18-month deadline may ensue. China has denounced the probe as discriminatory, while Margarethe Vestager, the Commission's Executive Vice-President for Competition, expressed concerns over the potential threat posed by subsidized Chinese wind turbines to the EU's economic security. Vestager emphasized the necessity to avoid repeating past mistakes that led to the decline of the EU's solar manufacturing industry. Giles Dickson, CEO of WindEurope, highlighted the significant price disparity between Chinese and European wind turbines, attributing it to allegedly unfair subsidies. European manufacturers, constrained by OECD rules, are unable to match the generous financing terms offered by their Chinese counterparts, including up to three years of deferred payment. Chinese wind turbines are reportedly being offered in Europe at prices up to 50% lower than those of European-made turbines, with deferred payments effectively rendering them free until wind farm operators generate three years of revenue, according to WindEurope. The EU, aiming to bolster its wind energy capacity, has set ambitious targets for 2030 and beyond. Last October, the EU unveiled a comprehensive action plan to enhance the competitiveness of Europe's wind energy industry, including measures to provide financial support and streamline permitting processes. The Foreign Subsidies Regulation stands ready to be invoked should subsidies enable wind turbine manufacturers to gain undue advantage in EU procurement procedures.

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?