EU announces plan to support struggling wind farm industry - Reuters

EU announces plan to support struggling wind farm industry | Reuters

EU announces plan to support struggling wind farm industry

Wind turbines are pictured at the RWE-Offshore-Windpark Kaskasi, north of Helgoland, Germany, March 23, 2023. Christian Charisius/Pool via REUTERS/File Photo Acquire Licensing Rights

- Companies

BRUSSELS, Oct 24 (Reuters) - The European Commission announced an action plan on Tuesday to keep Europe's wind industry in a global leadership position, including measures to boost financial support through export credit agencies and the European Investment Bank.

The EU aims to produce at least 42.5% of its energy needs from renewable sources by 2030 with wind at its core. However, the 27-member bloc is falling behind its target of increasing wind capacity to over 500 GW by 2030 from 204 gigawatts (GW) in 2022.

Part of the package also entails scrutinising foreign subsidies, namely in China. An EU official said the level of evidence had not yet reached the phase of a formal probe as in the case of Chinese electric vehicles.

"We will ensure a level playing field and help facilitate access to foreign markets. This includes our trade defence instruments and trade agreements to strengthen the competitiveness of the EU wind industry and ongoing negotiations for new agreements," EU Energy commissioner Kadri Simson told a press conference.

Among the other measures, the EU wants to speed up project permitting in order to add 37 GW per year to reach its targets. Last year, the bloc only added 16 GW of new wind power. The EU will also focus on re-skilling the labour market and push the creation of an EU wind charter treaty.

Giles Dickson, chief executive of Brussels industry group WindEurope, said the plan was a "game changer" for the sector.

"The new actions on finance, auctions and permitting will speed up the development of wind farms," Dickson said.

Onshore and offshore wind accounted for 16% of the EU's electricity production last year. However, EU wind power companies that led the global industry for years have been on the decline since 2021 due to growing competition and inflation, which led to a plunge in final investment decisions.

To remedy this, the Commission wants to improve auction design and introduce new legislation for non-price criteria in procurement such as evaluating cyber security, labour practices and how sustainable the supply is.

Danish firm Orsted (ORSTED.CO), the global leader in offshore wind, said the plan was timely.

“Wind power is a European success story that will be the backbone of securing Europe’s green transformation and energy independence," Ulrik Stridbaek, head of regulatory affairs at Orsted, said.

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