Europe on alert: Chinese wind turbines gaining ground in the European market

Chinese wind turbine manufacturers are strengthening their position in the European market. This follows a report on the first Chinese order in Germany, covered by the news agency Reuters. The European industry suspects China of providing unfair subsidies, while the Asian powerhouse counters that the size of its domestic market allows Chinese manufacturers to cut costs. Is Europe worried about a repeat of what happened during the expansion of Chinese solar power?

Although China’s share of operating wind farms in Europe remains relatively low, its growing presence is clear. According to data from WindEurope, Chinese manufacturers account for less than one percent. However, Chinese orders over the past year amounted to around 1.2 GW, a volume that previously took them ten years to build. Orders from China have added a further 546 MW so far this year.

This volume recently included the first-ever order from Germany. Project developer Luxcara ordered wind turbines with a total installed capacity of 296 MW from China’s Mingyang. In light of this development, as well as many others, such as the visit to Beijing by the head of RWE’s wind turbine division, it seems this is becoming a new “battleground” that should put Europe on alert. The German government has promised to thoroughly investigate Luxcara’s order.

“Once you open the door, you can’t close it again,” said Wolfram Axthelm, managing director of the German Wind Energy Association (BWE), voicing concern that China could flood the German market. According to representatives of the European industry, China uses incentives such as deferred payments or half-price offers that undermine the efforts of European producers.

Europe is therefore facing a highly complicated situation. On the one hand, it is striving as a whole to expand renewable energy sources as much as possible to reduce emissions; on the other, individual countries will also have to choose between cheaper options from China, which would further weaken manufacturing capacity in Europe. This is despite the fact that the European Commission has already launched an investigation.

Europe faced a similar situation eleven years ago, when the European Commission found that Chinese companies were selling solar panels in Europe at prices significantly below their normal market value. Politicians adopted only limited measures to curb Chinese imports at the time, leading to the collapse of many European manufacturers.

One factor that could currently constrain Chinese producers is their lack of manufacturing facilities on the European continent. Mingyang, the company mentioned above, makes turbines with a rotor diameter of 260 metres, and transporting components of this enormous size is inevitably expensive. However, where there’s a will, there’s a way, and Chinese companies are now seeking to manufacture directly in Europe.