Last October, the European Commission unveiled an ambitious Wind Power Package designed to propel European wind farms to new heights by mandating the use of turbines manufactured within Europe. The goal? A staggering 36 GW of wind energy manufacturing capacity in the EU by 2030, a target that has set the European wind supply chain abuzz with anticipation.
But it’s not just wishful thinking. Across Europe, from Szczecin, Poland to various other locations, new investments are cropping up, and ambitious plans for expanding wind turbine production are taking root. Heavyweights in the industry such as Vestas and Siemens Energy are bolstering their ranks and establishing state-of-the-art factories to keep pace with the burgeoning demand.
Support from European institutions is lending a significant boost to these efforts. The European Commission, for instance, has injected a substantial €4 billion to drive investment in the clean tech manufacturing industry. European Commission President Ursula Von der Leyen has also unveiled plans for a ‘European Competitiveness Fund’, with the aim of attracting increased private investment in clean tech ventures.
The European Investment Bank (EIB) is also flexing its muscles, offering a €5 billion guarantee facility to stimulate wind supply chain investments. And they’ve already put their money where their mouth is, securing a €500 million deal with Deutsche Bank to infuse even more financial support into the wind industry. The EIB further extended a €450 million loan to cable manufacturer Prysmian, enabling them to ramp up production and double their capacity to meet the burgeoning demand for offshore wind cables.
Despite these promising strides, there’s still the looming challenge of unfair competition from Chinese wind turbines. While some European countries have pledged to support the implementation of the Wind Power Package, they face an uphill battle against China’s cutthroat pricing and deferred payment offers. It’s akin to bringing a peashooter to a bazooka fight!
The European Commission, however, is gearing up to tackle this issue head-on. Investigations into Chinese subsidies are underway, and they’re poised to launch a Clean Industrial Deal in the near future to maintain their competitive edge. The lingering question, of course, is whether they can navigate the bureaucratic hurdles and avoid stumbling in their race to keep up with China.
But that’s not all. WindEurope is primed to launch an all-out campaign celebrating the European wind supply chain. They’re set to embark on a tour of sites across Europe, showcasing the incredible work taking place in the industry. Perhaps, the wind industry is set to soar to new heights after all.
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