European Commission Drafts Wind Power Package to Revitalize EU's Wind Industry
Posted 23/10/2023 11:32
In an effort to bolster the beleaguered wind industry in the EU and meet its 2030 climate and energy goals, the European Commission is set to unveil a comprehensive European Wind Power Package, as detailed in leaked drafts obtained by Euractiv. Acknowledging the critical role of wind energy in decarbonization, the proposed package outlines measures to address the challenges facing the sector, including the struggles of leading wind turbine manufacturers and the need for immediate intervention.
The package includes a Wind Power Action Plan and a communication focusing on realizing the EU's offshore renewable energy ambitions. It emphasizes the urgency of supporting European wind companies, enhancing their competitiveness, and streamlining the wind power generation process. Notably, it identifies five key challenges hindering the growth of the European wind equipment manufacturing sector, including underutilized production capacities, inflation, and limited hedging against input price volatility, among others.
To incentivize the growth of the European wind manufacturing industry and ensure fair competition with international counterparts, the plan proposes a redesigned wind auction regime that prioritizes non-price criteria. The European Commission also aims to monitor and counter potential unfair trade practices, with a commitment to activating trade defense instruments if necessary.
Additionally, the action plan seeks to streamline the permitting process, improve grid capacity, and facilitate cross-border electricity grid projects to accommodate increasing renewable energy volumes. It advocates for the acceleration of renewable energy law implementation and the development of detailed implementation plans for upcoming wind projects.
The package emphasizes the necessity of offshore renewables in the energy transition, highlighting the need for rapid growth to bridge the gap between the committed offshore capacity and current installations. It outlines various strategies to address permitting, skills, supply chain, and profit margin challenges, with a specific focus on strengthening infrastructure resilience and securing supply chains.
Moreover, the communication emphasizes the importance of ensuring that EU countries exporting renewable energy are duly rewarded, underscoring the ongoing assessment of benefit-sharing mechanisms. The Wind Power Action Plan and the communication are expected to be unveiled on Tuesday, with the aim of reviving the EU's wind industry and advancing the region's clean energy transition.