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Windtech International September October 2024 issue

 

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Phil Cole, Director of Industrial Affairs, WindEurope, BelgiumIn October 2023, the European Commission published its Wind Power Package, outlining 15 actions to enhance the competitiveness of Europe’s wind supply chain. The European Commission, the European Investment Bank (EIB) and European Union (EU) member states have made initial progress in implementing the Package, but further efforts are required to meet the EU’s 2030 energy security and climate targets.

By Phil Cole, Director of Industrial Affairs, WindEurope, Belgium

The EU aims to have its wind farms built with turbines manufactured within Europe. The Net-Zero Industry Act mandates 36GW of wind energy manufacturing capacity in the EU by 2030. Europe needs to invest in its wind energy supply chain to achieve this target.

The wind energy supply chain is responding with new investments across Europe. For instance, wind turbine manufacturer Vestas will establish nacelle and blade factories in Szczecin, Poland, potentially creating over 1,700 jobs by 2026. Siemens Energy also plans to hire around 4,000 new employees in Europe to expand its grid equipment manufacturing capacity. We have also seen factory expansions and new factory announcements for converter platforms, cables, offshore wind foundations and grid equipment.

European institutions are supporting these efforts. The European Commission launched a € 4 billion call under the Innovation Fund, offering grants to support investment in Europe’s clean tech manufacturing industry. European Commission President Ursula von der Leyen announced a European Competitiveness Fund to boost clean tech financing by leveraging and de-risking private investment.

The EIB has set up a € 5 billion counter-guarantee facility to boost wind supply chain investments. On 31 July, the EIB activated the first tranche of this facility with a € 500 million counter-guarantee deal with Deutsche Bank, part of a € 1 billion portfolio aimed at supporting the wind industry. The EIB estimates that this could trigger up to € 8 billion in additional private investments. The EIB has also provided a € 450 million loan to cable manufacturer Prysmian to double its production capacity for extruded cables, crucial for meeting offshore wind industry demand. Additionally, the EIB has signed a € 35 million loan with Spanish wind component manufacturer Haizea to support advanced manufacturing technologies.

The 26 EU member states that endorsed the European Wind Charter must continue implementing the Wind Power Package. Permitting numbers have improved in several countries because of legal changes, and auction prices have been adjusted in others to reflect increased input costs. But member states need to maintain momentum in supporting the wind industry.

Europe’s wind energy supply chain remains threatened by unfair competition from outside Europe. Chinese wind turbines are being offered in Europe at significantly lower prices than European turbines and with deferred payment terms that European manufacturers cannot match under Organisation for Economic Co-operation and Development rules. The European Commission has launched an inquiry into Chinese wind turbine suppliers under the EU’s new Foreign Subsidies Regulation. Europe must ensure that competition is fair and happens on a level-playing field. Otherwise, jobs, prosperity and Europe’s energy security are endangered.

 
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