Germany moves to strengthen domestic wind power industry (updated)

Ming Yang Smart Energy

17/10/2024 15:32

(Updates with details on specific measures, background
throughout)
    By Riham Alkousaa
       BERLIN, Oct 17 (Reuters) - Germany is planning state
guarantees for wind energy production, it said on Thursday, as
part of a package of measures to boost its wind industry amid
concerns from European governments and companies over Chinese
firms gaining momentum in the sector.
    Berlin will expand the scope a KfW state bank program for
sustainable transformation to include the guarantees, the
economy ministry said, as around 16 billion euros ($17.34
billion) in guarantees are needed for a production ramp-up by
2030.
    The measures will also expand the scope of companies that
must meet energy cybersecurity regulations to include all those
with access to a power generation facility.
    A spokesperson for the ministry said the measures will start
being implemented immediately, with plans to discuss the initial
results in early 2025.
    "We must continue improving conditions to keep this industry
competitive and ensure future value creation within Germany and
Europe. These measures are a crucial step," Economy Minister
Robert Habeck said in a statement, following a meeting with
industry representatives in Berlin on Wednesday.
    The plan also aims to reduce dependency on China for
critical components like permanent magnets, of which more than
90% currently come from the country. The industry will develop a
roadmap to achieve this by the end of this year or early 2025,
the ministry said.
    The German government plans to use existing EU tools like
the Foreign Subsidies Regulation and traditional trade
protection measures, such as anti-dumping and anti-subsidy
regulations, to ensure fair competition.    
    Tensions are high between Beijing and the EU, the world's
largest wind power markets. The European Commission launched an
investigation in April into whether Chinese companies are
benefiting from unfair subsidies.
    Industry experts say the use of Chinese turbines is
inevitable to meet the EU's 2030 renewable energy targets.
Brussels estimates that at least 37 gigawatts of new wind power
must be added annually, compared to the 17 GW added in 2023.
    However, Europe, mindful of past experiences where key
industries were lost to heavily subsidised foreign competition,
is determined to avoid a similar outcome in the wind sector.
    ($1 = 0.9229 euros)

 (Reporting by Riham Alkousaa, Editing by Rachel More, Kirsten
Donovan and Jan Harvey)
 ((Riham.Alkousaa@thomsonreuters.com;))