Europe’s wind industry is facing a critical turning point in the next three years, and the region must create a level playing field and establish the right framework conditions to compete with the massive subsidies provided by China and the United States. According to Enercon CEO Jürgen Zeschky, if Europe fails to address this issue, the fate of domestic manufacturing could be at stake.
Zeschky highlighted the significant subsidies given to onshore wind in both the East and the West, with the US tax credits for wind turbines amounting to approximately $160,000 per megawatt. This represents a substantial portion of the overall price, accounting for 15 to 20%.
To stay competitive, Europe must take decisive action to level the playing field. This can be achieved by implementing policies and regulations that support the growth of the wind industry while also addressing the disparity in subsidies. By creating a fair market environment, European manufacturers can compete on equal terms with their counterparts in China and the US.
Without these changes, Europe risks losing its domestic manufacturing capabilities. The wind industry plays a vital role in the region’s renewable energy transition, not only in terms of clean energy generation but also in job creation and economic growth. If Europe wants to maintain its position as a leader in the renewable energy sector, it must address the challenges posed by unfair subsidies.
In conclusion, Europe must act swiftly to create a level playing field and establish the necessary framework conditions for the wind industry. By doing so, the region can ensure the continued growth and success of its domestic manufacturing and maintain its position as a leader in the global renewable energy market.
Source: Recharge, Enercon CEO Jürgen Zeschky