Chinese wind turbine manufacturers have secured their first order in Germany this month, marking a significant milestone as they expand their presence in the European market. This development raises concerns within the EU industry, which fears an existential threat from these new competitors.
Tensions between Beijing and Brussels are escalating as the European Commission investigates whether Chinese companies benefit from unfair subsidies. This scrutiny comes in the wake of the EU’s solar industry collapse over a decade ago, when policymakers failed to limit Chinese imports, resulting in many European manufacturers shutting down, Reuters news report said.
Chinese manufacturers Goldwind, Mingyang Smart Energy, and Windey currently account for less than 1 percent of Europe’s wind capacity. However, their orders amounted to 1.2 gigawatts (GW) in 2023 alone, a volume that previously took them a decade to achieve.
So far this year, European orders for Chinese-made turbines have reached 546 megawatts (MW), including a recent order from Luxcara in Germany for 296 MW, the first such order from Europe’s largest economy. The German government is closely examining this decision.
European industry officials warn that China’s entry into the market could be long-lasting. Wolfram Axthelm, managing director of Germany’s wind power association BWE, noted that overcapacity is driving Chinese companies to flood the European market.
Though none of the companies commented on claims that they offer incentives like deferred payments and significantly lower prices, the Global Wind Energy Council reports that China’s production capacity is vastly exceeding its domestic market’s needs and is nearly four times that of Europe’s.
Chinese Wind Energy Association argues that Europe needs Chinese equipment to meet its expansion targets, given the production capacity gap in the EU. Major European developers like EnBW and BayWa have so far avoided using Chinese turbines, but RWE, the world’s second-largest offshore wind farm developer, has shown interest in Mingyang’s products following a recent visit to their facilities.
Mingyang is the only company guaranteeing delivery of an 18.5 MW model by 2028, which can power over 30,000 households. Despite shipping challenges, most Chinese turbine makers, including Mingyang, do not have production facilities in Europe. However, Goldwind’s Vensys division plans to produce an 86-meter turbine blade model in Spain, and Zhenshi Holding Group has acquired an Airbus factory in Spain for wind turbine blade manufacturing.
For Chinese companies to sustain their operations in Europe, local production is essential. Sany, another Chinese turbine maker, is considering building a turbine plant in Europe and has hired former Siemens Gamesa and Nordex executives to bolster its local team.
Mingyang acknowledges the competitive landscape in Europe, with its chief technology officer, Zhang Qiying, stating that while not everyone will welcome their presence, they are ready to meet demand if it arises.