Master plan with China brake
“Turning point” for wind power in the EU
October 24, 2023, 6:18 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
Wind power plays a central role in the green transformation towards a cleaner and cheaper energy supply. However, the EU countries are lagging behind in expansion and companies are suffering from competition. Now Brussels is announcing new plans that are being described as a “turning point” in the industry.
The EU Commission wants to help the ailing European wind power industry. This is to be done through financial aid via export credit agencies and the European Investment Bank, as the Brussels authority announced. Subsidies for foreign competitors should also be examined, especially in China.
“We will ensure a level playing field and facilitate access to foreign markets,” EU Energy Commissioner Kadri Simson said at a press conference. “This includes our trade defense instruments and trade agreements to strengthen the competitiveness of the EU wind industry, as well as the ongoing negotiations on new agreements.”
The EU has set itself the goal of covering at least 42.5 percent of its energy needs from renewable sources by 2030. Wind energy plays a central role in this. However, the 27 member states are lagging behind their goal of increasing wind power capacity to more than 500 GW by 2030 from 204 gigawatts (GW) last year. The EU therefore wants to speed up the approval of projects. This should help to achieve the expansion target of 37 GW per year. Last year the EU only managed 16 GW.
Industry pleased with plans
The EU will also focus on upskilling the labor market and promote the creation of an EU Wind Charter Treaty. The lobby association WindEurope described the plan as a “turning point” for the industry. “The new measures in the areas of financing, auctions and permits will accelerate the development of wind farms,” said its boss Giles Dickson.
According to the Danish company Orsted, the world market leader in offshore wind energy, the plans come at the right time. “Wind energy is a European success story that will be the backbone for securing Europe’s green transformation and energy independence,” said its manager Ulrik Stridbaek.
Only 16 percent share of electricity supply
Wind turbines contributed 16 percent to electricity generation in the EU last year. However, European wind power companies, which have been the global leader for years, have faced increasing competition since 2021.
In addition, there is strong inflation, which has led to a collapse in planned new investments. In order to remedy this, the Commission wants to improve the auction design and introduce new legal provisions for the award of contracts. This includes assessing cybersecurity, working practices and sustainability of the offering.