Germany Scrutinizes Chinese Wind Turbine Deal in North Sea Project

Germany's economy ministry will closely examine a deal involving Chinese-made wind turbines for an offshore project in the North Sea. Concerns about critical infrastructure and fair competition have been raised, especially amid broader trade tensions between Europe and China. The North Sea project aims to power 400,000 homes by 2028.

Germany's economy ministry will look "very closely" into a deal to supply Chinese-made wind turbines for an offshore project in Germany's North Sea, saying on Wednesday questions of critical infrastructure and competition must be addressed. Under the deal between German asset manager Luxcara and Ming Yang, the Chinese group would supply 16 turbines, each with a capacity of up to 18.5 MW, set for installation in 2028.

"The federal government will look at this decision very closely. On the one hand, in relation to the question of critical infrastructure. On the other hand, the level playing field must be maintained in relation to competition," a spokesperson told Reuters. The ministry comments come amid broader trade tensions between Europe and China, recently focused on electric cars where the EU has proposed tariffs on Chinese imports.

Earlier on Wednesday, Europe's wind industry lobby criticized the deal, saying it gave China access to critical infrastructure in Germany and that Europe's supply chain had been ready to deliver turbines for this project. "Germany and the European Union must consider whether they see wind energy as a strategic sector before it is too late," WindEurope said in a statement, adding that the European wind industry needed fair competition for all parties.

The deal comes after the European Commission in April requested information as part of a preliminary review of possible market distortions by Chinese wind turbine makers in five European Union countries, a move that China called "discriminatory". The North Sea project, dubbed Waterkant, will generate electricity for around 400,000 households, contributing to Germany's goal to cover 80% of its power needs by renewable energy by 2030, Luxcara said.

Luxcara said it had signed the agreement after an international tender and extensive due diligence exercise covering environmental, social and governance compliance in line with EU regulations as well as cyber security. "The Waterkant team thoroughly examined the turbine offers received in response to an international tender launched in late 2023," the asset manager said, adding that relevant electrical components of the turbine will be sourced from European sub-suppliers.

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