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President of the European Commission, Ursula von der Leyen, during her annual State of the European Union speech

The EU will defend and strengthen its industrial base in favor of renewable energies


The President of the European Commission, Ursula von der Leyen, delivered her annual State of the European Union address and put the European Green Deal in the spotlight.

The President underlined that this initiative has become a centerpiece of the EU economy and that it has unparalleled ambition. She also pointed out that thanks to it and the NextGenerationEU funds, Europe has started to "become more independent in critical sectors, such as energy, chips or raw materials".

However, von der Leyen also stressed the urgent need to support home-grown industry and avoid dependence on third parties while accelerating the growth of clean technologies.

During her speech, the President of the European Commission stated that she will continue to support European industry during the transition to the next phase of the European Green Deal. "We started with a package of measures, from the Net-Zero Industry Act to the Critical Raw Materials Act. With our industrial strategy , we analyzed the risks and needs of each ecosystem in this transition," she said.

Fair competition

"Competition is only true as long as it is fair," von der Leyen added, referring to the solar and electric vehicle industry. "Too often, our companies are excluded from foreign markets or are victims of predatory practices. They are often undercut by competitors benefitting from huge state subsidies. We have not forgotten how China's unfair trade practices affected our solar industry. Many young businesses were pushed out by heavily subsidised Chinese competitors," she explained.

Regarding fair competition, she also took the electric vehicle sector as an example. She noted that "it is a crucial industry for the clean economy, with huge potential for Europe. But world markets are flooded with cheaper Chinese electric cars. And their price is kept artificially low thanks to huge state subsidies." A situation that is distorting the European market.

Therefore, she announced that the Commission will launch an anti-subsidy investigation into electric vehicles from China.

The President also stressed that the wind industry, so central to its delivery, was facing a unique set of challenges. To address these challenges, President von der Leyen announced a new ‘Wind Power Package’. And concluded that "the future of our clean tech industry has to be made in Europe".

The EU Commission’s European Wind Power Package aims to fast-track permitting more than current legislation already does, improve auction systems in Member States, and focus on skills, access to finance and stable supply chains.

The European renewable industry welcomes the latest statements

The industry's reactions were not long in coming. SolarPower Europe issued a statement welcoming the President's words. 

Walburga Hemetsberger, CEO of SolarPower Europe said that "it was good to hear President von der Leyen’s commitment to critical industry made in Europe, and that Europe will do whatever it takes to keep its competitive edge. This promise must translate into action. Solar project developers face inflation-driven headwinds. Europe’s solar manufacturers are at risk of bankruptcy". 

She also explained that "we have the foundation of the EU Solar Strategy. We have the new European Solar PV Industry Alliance with the goal of reshoring 30 GW of solar manufacturing in 7 years. Europe is betting on solar to drive the energy transition. That means we need continued and decisive action to support grids, accelerate permitting, expand the solar workforce, and to urgently address today’s crisis in the solar supply chain.”

For his part, Giles Dickson, CEO of WindEurope said that "it’s very good the Commission are going to do this. It can’t come soon enough given the crisis our industry is facing now. And the President is absolutely right: it is essential that wind energy continues to be made in Europe.”
 
According to WindEurope, the European wind energy supply chain is struggling. Unless we change our policies, we could lose European manufacturing. The EU and Governments have set ambitious targets – 420 GW of wind energy by 2030. But the reality in the wind industry does not reflect this ambition. And the struggles of the European wind supply chain mean Chinese turbine manufacturers are now starting to win orders here. They offer cheaper turbines, looser standards and unconventional financial terms. There is a very real risk that the expansion of wind energy will be made in China, not in Europe. So new measures from the EU Commission cannot come soon enough.

 

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