WindEurope, the leading voice for the wind energy industry in Europe, has been at the forefront of advocating for stronger support for the continent’s wind supply chain.
The organisation has emphasised the critical importance of the European Commission’s Wind Power Package, a strategic initiative designed to enhance the competitiveness of Europe’s wind energy sector.
While this package has spurred significant progress, WindEurope underscores that more decisive action is necessary to meet Europe’s ambitious renewable energy targets.
The Wind Power Package: A roadmap for Europe’s energy future
In October 2023, the European Commission introduced the Wind Power Package, a comprehensive plan that outlines 15 immediate actions to strengthen Europe’s wind energy supply chain.
WindEurope has been instrumental in promoting this package, which is a key component of the EU’s broader strategy to achieve 36 gigawatts (GW) of wind energy manufacturing capacity by 2030 as mandated by the Net Zero Industry Act.
The package is designed to ensure that European wind farms are built with turbines manufactured within Europe.
This goal is critical not only for achieving the EU’s renewable energy objectives but also for maintaining Europe’s industrial competitiveness in the global market.
However, WindEurope warns that the success of this initiative hinges on sustained investment and the removal of barriers that could hinder the growth of the wind industry.
Driving investment: New developments across Europe
WindEurope has reported a wave of new investments across the European wind supply chain, signalling a positive response to the Wind Power Package.
Notable among these is Vestas, a major wind turbine manufacturer, which has announced plans to build new nacelle and blade factories in Szczecin, Poland.
These facilities are expected to create over 1,700 jobs by 2026, demonstrating the potential for job creation in the wind sector.
Siemens Energy is another key player expanding its operations, with plans to hire 4,000 new employees across Europe to increase its grid equipment manufacturing capacity.
These investments are crucial for meeting the growing demand for wind turbines and related infrastructure, which WindEurope identifies as a key factor in achieving the EU’s energy goals.
Financial backing: The role of the European Investment Bank
The European Investment Bank (EIB) has been a vital partner in supporting Europe’s wind energy sector, according to WindEurope.
The EIB’s €5bn counter-guarantee facility, which was established as part of the Wind Power Package, is designed to encourage private investment in the wind supply chain.
A recent milestone was the activation of a €500m counter-guarantee deal with Deutsche Bank, part of a larger €1bn portfolio aimed at supporting wind energy investments.
WindEurope has also highlighted the EIB’s €450m loan to Prysmian, a cable manufacturer, as a significant step toward expanding production capacity in key European factories. This expansion is essential to meet the offshore wind industry’s increasing demand for cables.
Additionally, the EIB has provided a €35m loan to Haizea, a Spanish wind component manufacturer, to support the adoption of advanced manufacturing technologies.
Challenges on the horizon: Addressing unfair competition
Despite these positive developments, WindEurope has raised concerns about the challenges posed by unfair competition from Chinese wind turbine manufacturers.
Chinese turbines, which are being offered in Europe at prices 30-50% lower than European-made turbines, present a significant threat to the competitiveness of Europe’s wind industry.
These turbines often come with deferred payment terms, making them even more attractive to buyers but difficult for European manufacturers to match under existing OECD rules.
WindEurope has called for urgent action to address these issues, warning that the influx of cheaper Chinese turbines could undermine the growth and sustainability of Europe’s wind sector.
In response, the European Commission has launched an inquiry into the practices of Chinese manufacturers under the Foreign Subsidies Regulation.
European Commission President Ursula von der Leyen has also pledged to introduce a Clean Industrial Deal early in her second term to tackle these challenges.
Member States’ commitment to implementing the Wind Power Package
WindEurope has commended the 26 EU member states that have endorsed the European Wind Charter and committed to implementing the actions outlined in the Wind Power Package.
These commitments are translating into tangible progress, with member states taking steps to improve auction designs, streamline permitting processes, and support infrastructure investments.
Countries like Belgium, France, Germany, Greece, and Spain have seen increased permitting activity thanks to recent legal reforms.
Meanwhile, regulators in Austria, France, Ireland, and Italy have adjusted auction prices to reflect the rising costs faced by the wind industry.
WindEurope stresses that continued commitment from member states is essential to ensure that Europe’s wind industry can meet its manufacturing capacity and energy security targets.
WindEurope’s campaign to support the wind supply chain
WindEurope is set to launch a dedicated campaign to showcase the benefits of Europe’s wind supply chain.
This initiative will involve site visits across Europe, with WindEurope representatives highlighting the innovation and dedication driving the industry forward. The campaign aims to raise awareness of the crucial role that the wind supply chain plays in Europe’s energy transition and to advocate for continued investment and policy support.
As Europe strives to meet its renewable energy targets, WindEurope’s efforts to strengthen the wind supply chain will be vital.
With the right strategies and support in place, Europe has the potential to lead the world in wind energy, securing a sustainable and prosperous future for its citizens.
