Germany outlines measures to strengthen domestic wind industry

Ming Yang Smart Energy

17/10/2024 10:34

BERLIN, Oct 17 (Reuters) - Germany plans to introduce
measures aimed at boosting its domestic wind industry, the
economy ministry said on Thursday, amid concerns from European
governments and companies over Chinese firms gaining momentum on
the continent.
    The measures will focus on improving cybersecurity, reducing
dependency for critical components like permanent magnets, and
ensuring fair competition in global markets, the ministry said
following a meeting with unnamed European wind turbine
manufacturers and suppliers in Berlin, without giving further
details or a time frame.
    China accounts for about 60% of global rare earth mine
production, but its share jumps to 90% of processed rare earths
and magnet output.
    "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.
    The plan will also address securing financing for increased
production and adjusting public funding mechanisms to prevent
market distortion.
    The ministry did not immediately respond to a request for
further details. 
    Tensions are high between Beijing and the European Union,
the world's two largest wind 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 (GW) 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.
    The ministry said wind industry representatives affirmed
their ability to meet medium- and long-term demand, provided
stable market conditions are maintained. 
    A further meeting to review progress on the measures is
scheduled for early 2025.

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