Germany announces measures to boost domestic wind industry
The German economy ministry announced on Thursday that it would introduce measures to boost its domestic wind industry. This comes amid concern from European governments and businesses about Chinese companies gaining momentum in Europe.
The ministry stated that the measures would focus on improving cybersecurity and reducing dependence for critical components such as permanent magnets. It also aims to ensure fair competition on global markets. This was after a meeting in Berlin with European wind turbine manufacturers, suppliers, and other unnamed parties.
China produces about 60% of the world's rare earths, but it accounts for 90% of its processed rare earths.
"We need to continue improving the conditions in order to maintain this industry's competitiveness and ensure future value generation within Germany and Europe. The measures taken are crucial, said Economy Minister Robert Habeck in a press release.
The plan will address the issue of securing funding for increased production as well as adjusting public financing mechanisms to avoid market distortion.
The ministry didn't immediately respond to our request for more details.
Beijing and the European Union are the two biggest wind markets in the world. In April, the European Commission began an investigation into whether Chinese firms are receiving unfair subsidies.
Experts in the industry say that the use of Chinese wind turbines will be necessary to achieve the EU's renewable energy targets for 2030. Brussels estimates at least 37 gigawatts of new wind energy must be added each year, compared with the 17 GW that was added in 2023.
Europe is aware of the past, where foreign competitors heavily subventioned key industries, and it is determined to prevent a similar result in the wind industry.
Wind industry representatives have assured the ministry that they can meet demand on a medium and long term basis, as long as stable market conditions continue.
The next meeting to assess the progress of the measures will be held in early 2025. (Reporting and editing by Rachel More, Kirby Donovan, Kirham Alkousaa)
(source: Reuters)
