What Role Do China, Siemens & Supply Chains Play in UK Wind?

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Stakeholders debate over whether Chinese investment in British wind energy projects is in the UK's interest or not
China dominates wind power production and clean energy manufacturing, reshaping global supply chains. However, its role in UK energy sparks criticism

The United Kingdom has long capitalised its gusty weather by deploying wind turbines, making it a prime candidate for a leader in wind energy.

The country's government recognises this potential and is keen to assert itself on the global stage as a powerhouse in wind technology.

A significant move by the current Labour government was to reverse the previous government's effective moratorium on onshore wind projects, signalling a renewed commitment to this energy source.

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British wind energy: Explained

The UK government has set ambitious goals for wind energy: increasing onshore wind capacity to 30GW and offshore capacity to 50GW by 2030.

With time ticking to achieve these targets, the optimisation of processes and significant investments are essential.

For offshore wind farms, which typically take more than 10 years to become operational, challenges include planning, deployment and integrating with the grid infrastructure.

Since its establishment in mid-2024, Great British Energy has been collaborating with the Crown Estate to assign seabed leases for new wind farm projects, an essential step towards expanding capacity.

Scottish Power has also made a substantial investment, entering into a US$1bn agreement with Siemens Gamesa to manufacture turbine blades in Hull for the East Anglia 2 wind farm.

According to Keith Anderson, Scottish Power's CEO, projects like these “will turbo-boost the UK's supply chain, giving companies like Siemens Gamesa the confidence to invest in projects like this blade factory in Hull”​​​​​​.

Keith Anderson, CEO of ScottishPower

Likewise, Darren Davidson, UK Head of Siemens Energy and Siemens Gamesa, says that the company's deal with Scottish Power was a "magnificent order" and that the factory is "acting as a catalyst for economic growth and green jobs across the region".While boosting domestic production is a priority, the UK is also contemplating international collaborations to meet its net zero ambitions.

Darren Davidson, UK Head of Siemens Energy

A major focus of these discussions is China, recognised globally for its dominant position in the wind power sector.

China: Strategic partner or market challenger?

In 2023, China represented two-thirds of the world's turbine production, supported by substantial investments (around US$100bn) and state subsidies.

This financial backing enables Chinese companies like Goldwind to offer competitive pricing, which often undercuts Western companies.
“China is leading against all of its competitors when it comes to green technology,” says Li Shuo, Director of the China Climate Hub at the Asia Policy Institute.

Li Shuo, Director of the China Climate Hub at the Asia Policy Institute | Credit: Li Shuo

“China has a real advantage and has established a huge green industry.”

However, this rapid growth has sparked controversy, mainly regarding the fairness of the substantial subsidies Chinese firms receive.

Giles Dickson, CEO of WindEurope, argues: “Chinese wind turbine manufacturers are offering much lower prices than European manufacturers and incredibly generous financing terms with up to three years deferred payment. You can't do that without an unfair public subsidy."

Giles Dickson, CEO of WindEurope | Credit: WindEurope

Additional environmental issues arise from China's continued reliance on coal, particularly in steel production for turbines, which undermines the broader ecological benefits of their wind industry.

UK and China: Navigating complex waters

The UK and China have a history of collaboration in wind energy, beginning with a 2013 Memorandum of Understanding aimed at overcoming technological and market barriers.

In 2023, China contributed to two-thirds of all wind energy construction projects

Notable cooperative ventures include the supply of innovative aerodynamic enhancements by Oxford-based Anakata Wind Power to Chinese wind farms, leading to significant increases in energy output.

Chinese investments have supported UK projects like the Beatrice offshore wind farm and the Green Volt floating project in Scotland.

Despite these achievements concerns linger, as voiced by former SNP MP Stewart McDonald, about the potential risks of allowing Chinese firms to supply critical components for UK energy infrastructure.

He remarks on the strategic hazards of relying on suppliers from what he refers to as "an authoritarian and hostile state".

Stewart McDonald, former SNP MP | Credit: UK Parliament

“We are handing over such important capability to the net zero transition to an entity that comes from an authoritarian and hostile state at a time when the European Union and other countries are going in a different direction,” he says.

On the other hand, figures like Jonathan Cole, CEO of Corio Generation, warn that excluding Chinese input might hinder the UK's clean energy targets due to a projected shortage of critical components.

He argues that maintaining a competitive edge in the wind energy sector might depend on continued cooperation with China.

“If you look at the amount of deployment needed in renewable energy to hit energy transition targets and the current capability of the supply chain, by about 2026/27 every region of the world except China has a shortage of critical components," he explains.

Jonathan Cole, CEO of Corio Generation | Credit: Corio Generation

“If we extract China from the supply chain, what we’re actually going to do is delay the energy transition and make it more expensive. And that’s not in our national interest.”

As the UK strives towards its renewable energy future, navigating these complex relationships will be crucial.

Ben Wood, CEO of Anakata Wind Power, credits past collaborations with fostering access to the Chinese market, which would have been nearly impossible otherwise.

“Anakata is now successfully accessing the Chinese wind energy rotor blade retrofitting market for its innovative aerodynamic add-ons as a direct result of all the hard work of Offshore Renewable Energy Catapult, Innovate UK and the TUS-ORE Catapult Research Centre,” he says.

Ben Wood, CEO of Anakata Wind Power | Credit: Anakata

“Without their help, support and bridge-building with the ideal Chinese partner companies, this would have been a near impossibility."


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