Dickson acknowledged the struggles faced by wind turbine manufacturers, operating at a loss due to the inability to pass on higher costs to customers.
In a recent interview with Balkan Green Energy News, WindEurope’s Chief Executive Officer, Giles Dickson, discussed the challenges and positive developments in the European wind industry.
Despite facing setbacks such as inflation, high input costs, supply chain bottlenecks, slow permitting, and grid limitations in the past year, Dickson highlighted a positive shift in the industry’s fortunes.
Dickson acknowledged the struggles faced by wind turbine manufacturers, operating at a loss due to the inability to pass on higher costs to customers. Permitting bottlenecks and poor auction design in some countries further compounded challenges, suppressing market volumes. However, he noted that permitting bottlenecks are easing with new EU rules, and inflation in input costs has also decreased.
The CEO emphasized that governments now recognize the strategic importance of Europe’s wind industry, supporting it through measures outlined in the recently launched Wind Power Package and the Action Plan for Grids. Dickson sees a turning point and a positive trajectory, stating that 2024 remains challenging but marks the beginning of a turnaround.
Positive developments include Europe’s increased commitment to the energy transition, driven by geopolitical concerns such as the Russian invasion of Ukraine. The REPowerEU package, a response to the Russian invasion, has shown results in Germany, where changes to wind energy permitting have led to a rise in new permits. European governments have also raised wind energy expansion targets, fostering cross-border collaboration on renewables.
Looking ahead to 2024, Dickson highlighted the crucial year for ramping up Europe’s wind energy supply chain to meet the ambitious 2030 targets. The EU aims for 420 GW of wind energy by 2030, requiring the industry to build nearly twice as many wind turbines annually. Collaboration between industry, governments, and public authorities will be essential.
Addressing concerns about economic dependency, cybersecurity, and the economic benefits of wind energy manufacturing in Europe, Dickson stressed the importance of avoiding reliance on Chinese turbines. He urged for a focus on the competitiveness and resilience of Europe’s wind energy supply chain.
Grid constraints were acknowledged, with the EU Commission’s Action Plan for Grids aiming for EUR 584 billion in new investments to modernize Europe’s electricity grid. The plan recognizes the necessity of grid expansion for the growing demand and increasing renewable capacity.
Dickson expressed optimism about the European Wind Charter, signed by 26 EU member states and over 300 companies in December 2023. The charter supports wind energy manufacturing in Europe and outlines measures to unlock investments, improve long-term visibility, and fast-track permitting.
Regarding the recent agreement on the EU’s electricity market design revision, Dickson sees it as a positive compromise that avoids inframarginal revenue caps and supports different routes to market for renewables. The agreement is expected to be formally adopted by the Council and the Parliament in early 2024.
In summary, the European wind industry is navigating challenges but sees a positive shift in momentum with increased government support, policy initiatives, and a renewed focus on domestic energy production and security.