Chinese wind turbine manufacturers have secured their first order in Germany this month, marking a significant step into the European market inflaming concerns within the EU over potential threats to local manufacturers.

The European Commission, the EU’s executive branch, has initiated an investigation to determine if Chinese companies are benefiting from unfair subsidies.

This situation is reminiscent of a decade ago when European solar manufacturers suffered severely due to competition from Chinese imports.

Currently, Chinese companies like Goldwind, Mingyang Smart Energy, and Windey represent less than 1% of Europe’s wind capacity. However, in 2023 alone, their orders in Europe reached 1.2 gigawatts (GW), matching the total volume they installed over the past decade. This year, orders for Chinese-made turbines in Europe have already hit 546 megawatts (MW).

A significant order from Luxcara in Germany, involving Mingyang turbines with a capacity of 296 MW, marks the first such order from Europe’s largest economy.

The German government has expressed its intent to closely monitor this decision. European industry leaders warn that once the market opens to Chinese competitors, it may be difficult to reverse the trend.

Wolfram Axthelm, managing director of Germany’s wind power association BWE, noted that overcapacity in China is driving these companies to expand aggressively into Europe.

Chinese manufacturers have not commented on accusations that they offer incentives such as deferred payments and significantly lower prices—up to 50% less than those of European rivals. The Global Wind Energy Council reports that China’s production capacity of around 82 GW vastly exceeds its domestic demand, nearly quadrupling Europe’s capacity.

The Chinese Wind Energy Association argues that Europe must procure equipment from China to meet its wind power expansion targets, given the production capacity gap in Europe.

Major European wind project developers like EnBW and BayWa have so far avoided using Chinese turbines. However, RWE, the world’s second-largest offshore wind farm developer, recently explored Mingyang’s production facilities to assess their technology, quality, safety, and cost-effectiveness.

Although RWE prefers working with established firms, the company’s visit to China indicates a need to consider Asian suppliers due to strong market growth.

Luxcara highlighted that Mingyang was the only company guaranteeing the delivery of an 18.5 MW model by 2028. An 18 MW offshore turbine can generate enough power for over 30,000 households. Mingyang’s offshore turbines, with rotor diameters of 260 meters, are among the largest in the industry, demonstrating the scale of Chinese manufacturers’ ambitions.

Despite the logistical challenges of shipping large equipment, most Chinese turbine makers, including Mingyang, currently have no production facilities in Europe.

An exception is Vensys, a division of Goldwind, which plans to produce an 86-meter wind turbine blade model at its factory in Ferreira, Spain. Zhenshi Holding Group recently acquired an Airbus factory in Spain to manufacture wind turbine blades.

Evgenia Golysheva, VP of Strategy and Operations at ONYX Insight, a renewable technology firm, stressed that local production is essential for Chinese companies to maintain their equipment without incurring high shipping costs.

Chinese wind turbine maker Sany has been considering building a turbine plant in Europe and has hired former executives from Siemens Gamesa and Nordex to bolster its local team. However, Sany, Goldwind, and Zhenshi declined to comment on this story.

Mingyang’s chief technology officer, Zhang Qiying, acknowledged the mixed reception of Chinese competition in Europe. He emphasized that if there is demand for their turbines in the West, they will continue to pursue market opportunities there.

China’s wind energy sector is one of the largest and most rapidly growing in the world.

As of 2023, China’s wind power production capacity stood at approximately 82 gigawatts (GW). This capacity significantly outstrips domestic demand, positioning China as a dominant force in the global wind energy market. The country has invested heavily in developing its wind energy infrastructure, achieving remarkable advancements in both onshore and offshore wind technologies.

China’s wind turbine manufacturers, such as Goldwind, Mingyang Smart Energy, and Windey, are key players driving this expansion. These companies have not only increased their domestic market share but are also making significant inroads into international markets, including Europe.

The scale of their production capabilities is underscored by Mingyang’s development of offshore turbines with rotor diameters of 260 meters, among the largest in the industry.

The Chinese wind energy sector’s growth is supported by substantial government policies and incentives aimed at reducing carbon emissions and promoting renewable energy sources.

This strategic focus has enabled China to rapidly expand its wind energy capacity, positioning it as a crucial player in the global transition towards sustainable energy.

Main Image: By taylorandayumi – Train to Xinjiang Provnice (sic), CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=7009383