EU curbs on Chinese inverters risk slowing clean energy rollout in poorer member states: firms

A ban on EU funding for Chinese-made inverters, a critical clean energy component, could slow or even halt the rollout of solar and wind projects in poorer European countries that rely on public money, companies and investors warned.

The European Union is seeking to become more self-sufficient in strategic industries but is currently still heavily dependent on Chinese supply chains for technologies crucial to the bloc’s green transition.

The European Commission blocked EU funding in May for inverters — an essential part in solar, wind and battery storage systems — from so-called “high-risk” countries, including China, over security concerns.

China supplies about 70 percent of Europe’s inverters.

EU ban raising project costs, freezing finance decisions

In a letter to European Commission President Ursula von der Leyen, dated July 7 and seen by Reuters, 36 companies and investors warned that restricting Chinese inverters would disrupt solar and wind expansion in Central and Eastern European countries.

Those countries are already lagging behind wealthier Western European nations in their efforts to move away from fossil fuels.