Challenges and Opportunities for the European Wind Industry: Between Innovation and Regulations of the Net Zero Industry Act

The European wind industry, which provides 19% of the electricity consumed on the continent and employs approximately 300,000 people, currently faces significant challenges.

The almost exclusively European production of wind turbines, supported by a vast network of over 250 factories located in nearly all EU member states, represents a fundamental pillar for the sector.

However, over the past two years, the industry has faced an increase in production costs that has not been offset by an equivalent increase in revenues, further complicating the growing competition from Chinese turbine manufacturers.

WindEurope, in its latest analysis, explains the main challenges for wind energy related to the Net Zero Industry Act.

European Wind Industry: The Energy Measures Package

In response to these difficulties, the EU adopted an energy measures package focused on wind energy last year, comprising 15 immediate actions aimed at strengthening the European wind industry.

These actions, supported by 26 member states through the signing of a European Wind Energy Charter, aimed to tighten the prequalification criteria for wind turbines produced in Europe, imposing higher standards in terms of cybersecurity, data management, and responsible corporate conduct.

However, the imminent approval of the Net Zero Industry Act (NZIA) by the EU raises significant concerns for the wind sector. Although the intention to strengthen clean energy supply chains in Europe is commendable, some aspects of the NZIA could undermine previous efforts.

In particular, the proposal to initially apply the new prequalification criteria to only 20% of wind projects directly contradicts the provisions of the wind energy package, which called for their application to all projects.

European Wind Industry: External Competition Makes the EU Market Vulnerable

This discrepancy risks sending a mixed message, suggesting that the EU is committed to high European standards only for a minimal portion of wind projects, leaving the rest vulnerable to external competition.

According to WindEurope, it is important to recognize that the situation of wind energy in Europe is unique compared to other clean energy sectors, some of which still largely depend on imports.

While the universal application of higher standards might be premature or harmful for these sectors, for wind energy it is essential to preserve and enhance the existing supply chain.