- Orsted CEO Mads Nipper has stated that while current projects do not include Chinese wind turbines, the company remains open to the possibility of using Chinese technology in the future, reflecting a flexible approach to its supply chain.
- The European wind industry faces increasing competition from Chinese turbine manufacturers, who are gaining ground in the market.
- The EU has launched an investigation into subsidies for Chinese wind turbine manufacturers, highlighting concerns about the growing influence of Chinese firms in Europe and the potential impact on the region’s wind industry.
Orsted, a leading offshore wind farm developer, has confirmed that none of its current projects include Chinese wind turbines. However, CEO Mads Nipper has not ruled out the possibility of using Chinese turbines or technology in future developments.
Local giants like Vestas and Siemens Gamesa have long dominated the European wind turbine market. However, Chinese turbine manufacturers have recently gained significant ground in Europe, leading to growing concerns within the EU about the potential threat to the region’s wind industry.
Last week, China’s Mingyang Smart Energy announced plans to establish a wind turbine manufacturing plant in Italy. This development marked a significant step in China’s strategy to expand its influence in the European market. At the same time, German utility company EnBW revealed that it is considering using Chinese turbines for future projects, signalling a potential shift in the industry’s balance of power.
During a recent media call, Orsted CEO Mads Nipper addressed these developments, stating that the company is closely monitoring the situation in Italy and Germany. Nipper emphasised that Orsted is “ruling out absolutely nothing” regarding its supply chain. While the company has not yet incorporated Chinese turbines into its projects, it has already used Chinese components and steel.
“I’ve previously mentioned that Chinese turbines would unlikely become a core part of Western infrastructure. But that doesn’t change our view that we are exploring all technologies,” Nipper explained.
Nipper’s comments came shortly after Orsted reported unexpected impairment losses in the second quarter, a setback that led to a more than 9% drop in the company’s share price. The losses underscored the financial challenges that even major players in the wind energy sector face, particularly as the market becomes more competitive and complex.
In April, the European Union took a significant step to protect its domestic wind industry by announcing an investigation into the subsidies provided to Chinese wind turbine manufacturers. The investigation aims to determine whether Chinese companies are receiving unfair financial support that allows them to undercut European firms with low-cost, clean technology products.
The EU’s probe reflects broader concerns about the growing influence of Chinese manufacturers in the global renewable energy market. Companies like Mingyang, Goldwind, and Windey have rapidly expanded their operations. They are now looking to establish a more substantial presence in Europe, a region that local manufacturers have traditionally dominated.
Nipper acknowledged the potential regulatory risks associated with the increasing presence of Chinese companies in the European market. He noted that unforeseen events, such as the outcome of the EU’s investigation, could complicate Orsted’s supply chain decisions in the future. However, he also pointed out that the company is committed to maintaining a flexible and diversified approach to sourcing its technology and components.
The rise of Chinese manufacturers in the European wind market has led to a complex and evolving landscape. While European companies like Vestas and Siemens Gamesa remain dominant, the growing influence of Chinese firms poses challenges and opportunities for the industry. This dynamic environment reflects Orsted’s openness to considering Chinese turbines for future projects.
As Chinese manufacturers continue to make inroads into the European market, local industry players are increasingly concerned about the potential for increased competition. The recent moves by Mingyang and EnBW signal that Chinese companies are not only targeting the European market but are also becoming viable alternatives for European developers looking to lower costs and diversify their supply chains.
Orsted’s cautious yet open approach to the possibility of using Chinese turbines highlights the strategic considerations that global wind energy companies must navigate. The company’s current reliance on European suppliers reflects the market’s status quo, but the future may see a more significant role for Chinese technology as the industry continues to evolve.
The wind energy sector is at a critical juncture, with European companies facing growing pressure from their Chinese counterparts. Orsted’s willingness to keep its options open suggests that the company is prepared to adapt to these changes, ensuring it remains competitive in a rapidly shifting market landscape.
In conclusion, while Orsted’s current projects do not include Chinese turbines, the company has not closed the door to possibly incorporating them. As the global wind energy market evolves, Orsted is carefully considering all available technologies, including those from China, to maintain its competitive edge in an increasingly challenging industry. In the coming years, further developments will likely be seen in this area as European and Chinese companies continue to vie for dominance in the offshore wind market.