Germany chooses China to supply the world’s largest wind turbines

The recent announcement by German wind farm developer Luxcara that it is choosing a Chinese equipment manufacturer for its future site has caused a stir in Europe. This watershed moment could determine the direction of the European Union’s green transformation plans over the next few years.

After the debut of electric vehicles, it’s time for Chinese-made wind turbines to enter European markets. Earlier this week, Luxcara announced that it had selected MingYang Smart Energy to supply 18.5 MW of turbines, which are set to be installed by 2028.

It is an unprecedented move, given that European equipment manufacturers are driving the EU’s push for renewable energy from wind farms. GE, Vestas and Siemens have manufacturing facilities in Europe and regularly supply onshore and offshore turbines to meet growing demand in Europe.

Is Chinese equipment better?

In a statement, Luxcara said it had made the decision even before it was announced; the company launched an international tender in 2023 and conducted a lengthy and extensive due diligence process covering environmental, social, governance and EU compliance issues.

The Waterkant project aims to generate electricity to power 400,000 households in Germany. It will help the country achieve its goal of covering 80 percent of its energy needs with renewable energy.

Interesting engineering previously reported how MingYang Smart Energy is building wind turbines with higher power ratings and ones that can even operate in typhoons. By comparison, European turbine manufacturers have abandoned plans to produce similarly sized turbines and instead opted for turbines with much lower power ratings.

A project like Waterkant would require a larger number of European-made turbines to achieve a similar power output, further increasing installation costs.

Unfair competition or protectionism?

The German economics ministry confirmed it would closely examine the deal after Europe’s wind industry lobby argued it gives China access to critical energy infrastructure in Europe. The industry lobby also seeks fair competition for all parties, Nikkei reported.

The move also follows a decision by the European Commission to conduct a preliminary review of possible market disruptions by Chinese wind turbine manufacturers, which is likely to further increase trade tensions between Europe and China.

Following the introduction of cheap electric vehicles made in China, the European Union is now considering tariffs on Chinese imports. A similar move for wind turbines could increase project costs and slow the transition to green energy.

Article published in Global times argues that the EU’s actions amount to trade protectionism and are a response to the fierce competition that the European wind industry faces from Chinese producers around the world.

Opposition to Chinese imports could undermine the EU’s larger plans to switch to renewable energy or increase costs for the end customer. Instead, cooperation will help both regions.

All eyes are now on what steps Germany and the rest of the EU will take.