EU to put foreign wind imports under subsidy microscope in industry aid drive: report

Commission according to draft document also intends to help embattled wind industry with financing from European Investment Bank

European Commission President Ursula von der Leyen.
European Commission President Ursula von der Leyen.Foto: European Union
The EU plans to increase financial support for Europe’s ailing wind sector and to put subsidies of overseas wind product imports under the microscope, according to a draft document to be published next week, the Reuters news agency said.

Western wind manufacturers currently are all loss-making, and could come under more pressure as Chinese rivals are trying to enter the European market with bigger and cheaper wind turbines – often helped by cheap Chinese state financing, low labour costs and environmental standards, and possibly dumping practices.

The European Commission on Tuesday will present a new wind power package to help the embattled sector with a focus on several areas - permitting, auctions, skills, access to finance and stable supply chains – but so far has declined to give more detail.

European Commission President Ursula von der Leyen in her State of the Union speech in September had announced the upcoming wind power package.
The draft measures would see the European Investment Bank launch a scheme to counter-guarantee bank’s credit exposures to wind industry suppliers, Reuters said, referring to the leaked draft.

The draft document also said the EU would closely monitor "possible unfair trade practices which benefit foreign wind manufacturers" including subsidies for products sold into the European market, the agency said.

"If justified, the Commission will activate its trade defence instruments," the draft is quoted as saying.

The EU last month had already launched an investigation into cheap Chinese electric vehicle imports.

Wind manufacturers in Europe are concerned they could be pushed out of their home market by Chinese (or other overseas) rivals just like solar panel makers before them a decade ago.

Chinese OEM Sany last month told Recharge in an interview it plans to sell supersized onshore wind turbines in Europe and is searching for sites to build a factory there – sending shockwaves through the industry.
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Published 19 October 2023, 08:10Updated 19 October 2023, 08:52
EuropeEUEuropean CommissionUrsula der LeyenPolicy