Last year, a large offshore wind power project in the North Sea of Germany planned to use wind turbines manufactured in China, which triggered doubts from European business and political circles, as they were concerned that this would allow Beijing to gain excessive influence over Europe's key energy infrastructure.

Now, the project operator has proactively announced that it will no longer use Chinese equipment, and instead will source from German domestic manufacturers.

Wind turbine produced by Mingyang Smart

The German investment company Luxcara, which plans to build a large wind farm in the North Sea, stated on August 25 that it might cancel the agreement with the Chinese company Mingyang Smart for wind turbines. Luxcara emphasized that this move was due to "operational reasons," but also noted that "enhanced security is a positive side effect."

According to the supply agreement announced last year, the planned Waterkant wind farm in the North Sea was intended to use wind turbines produced by Mingyang Smart, with a total capacity of 300,000 kW, equivalent to the electricity needs of 400,000 households. However, now, Luxcara, based in Hamburg, said that it has reserved the capacity of 19 turbines for Gamesa, a subsidiary of Siemens. Since Luxcara also uses Gamesa-produced turbines at the nearby Waterekke wind farm, this change in suppliers helps improve operational efficiency. Waterekke is currently the largest wind farm project in the North Sea in Germany, with a total capacity of 1,500,000 kW.

In response to an email from Reuters, Luxcara stated that the political debate surrounding the Chinese company Mingyang Smart did not play a decisive role in this supplier change. However, it added that "our approach also aligns with political goals and addresses issues related to the supply chain, technological dependence, and security, which is a positive side effect."

Siemens' Gamesa has been facing financial difficulties in recent years, partly due to quality issues with its onshore wind turbines, which have caused project delays and significant maintenance costs.

China's Equipment Causes Anxiety in Europe

After the supply agreement between Luxcara and Mingyang was disclosed last year, it sparked criticism from European turbine manufacturers, who argued that it involved unfair competition and could allow Chinese companies to gain control over Europe's critical infrastructure, threatening Europe's energy security. Then-German Economy Minister Habeck also announced that he would review the agreement.

The German Ministry of Defense released a research report earlier this year stating that so far, only one wind farm in Taranto, Italy, has used turbines from Chinese companies.

In recent years, Chinese new energy power generation equipment manufacturers have continued to consolidate their dominant position in the global market, continuously causing security concerns among European countries.

Now, with Luxcara proactively changing its supplier, the new German government led by Chancellor Merkel does not have to face the problems left by the previous government.

Rongding Group's China expert Balikin posted on social media that if Chancellor Merkel had halted the supply agreement just a few months before her first visit to China, it would have inevitably triggered new geopolitical tensions.

Merkel plans to lead a delegation of numerous corporate executives to visit China at the end of this year.

New Supplier Is in Financial Quagmire

Luxcara has already informed the German Federal Ministry of Economics and other relevant parties about the change in suppliers, but has not yet signed a formal agreement with Siemens Gamesa.

Gamesa confirmed the change in suppliers, but refused to disclose more details. The company has been facing financial difficulties in recent years, partly due to quality issues with its onshore wind turbines, which have caused project delays and significant maintenance costs.

The German Federal Ministry of Economics stated that it usually does not comment on private companies' decisions and revealed that the deployment plan for wind turbines will be approved by the Federal Maritime and Hydrographic Agency.

Mingyang Smart issued a statement saying that it is no longer participating in the Waterkant wind farm project in the North Sea, but is still exploring opportunities in Germany, "continuing to invest in technological innovation, strengthen local cooperation, and explore the possibility of establishing a local production base."

Sources: DW

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