The European Commission has launched an inquiry into suspected illegal subsidies for Chinese wind turbine producers, concerned about the impact of cheap imports on the domestic industry. The probe will investigate wind farm developments in several European countries, including Spain, Greece, France, Romania, and Bulgaria. The EU is worried that state subsidies are allowing Chinese producers to undercut European manufacturers and dominate the market, similar to what occurred in the solar panel industry where less than 3% of panels installed in Europe are produced domestically.
European Commission executive vice-president Margrethe Vestager made the announcement during a lecture at Princeton University, emphasizing the need to prevent what happened with solar panels from occurring in the wind turbine sector. Vestager highlighted China’s dominance in the solar panel industry due to massive subsidies and cheap exports. The EU is concerned that a similar situation could arise with electric vehicles, wind turbines, and other essential technologies. The Commission is seeking to investigate potential distortions of competition caused by foreign subsidies benefiting certain wind manufacturers and companies active in the internal market.
The Brussels-based trade association WindEurope has expressed support for the Commission’s inquiry, noting that Chinese wind turbine manufacturers are already offering significantly lower prices compared to European manufacturers. WindEurope’s director Giles Dickson cited the generous financing terms and deferred payment options offered by Chinese suppliers, indicating potential unfair public subsidies. The EU executive has been warned about possible future competition probes in the wind power sector, with concerns about permitting bottlenecks, skills shortages, and access to key raw materials.
The EU executive in Brussels confirmed the launch of the probe, stating that the investigation will allow them to further examine the issue and potentially impose redressive measures to address distortions of competition. The Commission has the power to investigate the effects of foreign subsidies and take action if unfair advantages are granted to certain companies, impacting competition in the market. Domestic wind turbine producers have been calling for protection from unfair overseas competition, urging EU leaders to safeguard their interests and ensure a level playing field in the industry. The launch of this inquiry reflects the EU’s commitment to promoting fair competition and addressing issues of market distortion caused by foreign subsidies.
