EC pledges support package for wind power

First announcing there would be some form of support in her ‘State of the Union’ speech in September, EU Commission president Ursula von der Leyen today unveiled the package, which contains a series of actions that can be taken quickly to strengthen the sector.

The EC proposes bidders should meet ‘pre-qualification criteria’ before bidding for new wind farm developments; auction prices should be indexed so that the price agreed for a project also goes up if costs rise; the money available under the EU Innovation Fund will be doubled to €1.4 billion for manufacturing; European Investment Bank lending policy to finance manufacturing will change; trade instruments will be used to ensure a level playing field; and the permit process should be accelerated.

Among the challenges facing the sector, WindEurope says, are Chinese wind turbine manufacturers beginning to win orders in Europe with cheaper turbines and deferred payment terms that are ‘unfairly subsidised by the Chinese State’.

“The wind supply chain is struggling right now,” says WindEurope. “Its input costs have gone up sharply over the last two years. Persistent permitting bottlenecks haven’t helped. And poor auction design in many countries has undermined the revenues of both wind farm developers and turbine manufacturers. The manufacturers and their suppliers need to ramp up production and build new factories. But they need financial and other policy support to do so.”

Calling the package a ‘game changer’, WindEurope CEO Giles Dickson said the 15 actions on finance, auctions and permitting processes would speed up the development of wind farms and.

“Crucially they’ll help Europe’s wind energy supply chain deliver the equipment for the development, which is good for jobs and growth, and for Europe’s energy security, he said. “As Ursula von der Leyen said in her recent State of the Union speech, the future of Europe’s clean tech must be made in Europe.”