In October this year, the European Commission went on publish the Wind Power Package: 15 Immediate Actions to Strengthen the Competitiveness of Europe’s Wind Value Chain. The European Commission along with the European Investment Bank happen to be already delivering on their parts of the package. The bulk of the actions, however, fall to the national governments. Apparently, the energy ministers of 26 EU Member States went ahead and endorsed the European Wind Charter, formally ensuring their countries to deliver on the paths and actions expected of them under the Wind Power Package. This kind of support shows that governments have gone on to understand the strategic value when it comes to wind energy being made in Europe and the urgent requirement so as to strengthen Europe’s wind industry.
The EU, in a way, continues to march decisively when it comes to executing the EU Wind Power Package. Notably, 26 EU Energy Ministers as well as above 300 companies from the wind energy gamut have gone on to endorse the European Wind Charter, which itself goes on to commit governments to strengthening Europe’s wind energy industry and also execute the actions set out in the Wind Power Package.
WindEurope CEO Giles Dickson said that it is indeed a huge day for Europe’s wind energy industry, as 26 countries have gone on to commit to executing the actions that have been set out in the EU’s excellent Wind Power Package. The actions on permitting, finance, as well as auctions will boost the expansion of wind energy and, at the same time, strengthen Europe’s wind industry. This happens to be good for jobs and growth, and also for Europe’s energy security. It portrays that Europe as a whole is well aware of the urgent need in order to strengthen its wind industry.
Apparently, the Charter isn’t the first step when it comes to executing the EU Wind Power Package that got published in October this year. The EU has already majorly enhanced access to finance when it comes to wind energy investors. The European Commission has gone on to launch a €4 billion call under the Innovation Fund, which has grants that are aimed at supporting investment within the clean tech manufacturing. The European Investment Bank- EIB has gone on to change its lending rules so as to support factory investments and launched a new €5 billion counter-guarantee scheme for the manufacturing of wind turbines.
Member States commitment
By agreeing and signing the European Wind Charter, the 26 countries push to urgently execute the changes to wind energy auction design as well as permitting. They also commit to funding Europe’s wind energy supply chain as well as supporting the infrastructure needed for the expansion of wind.
On permitting, there is going to be a rapid implementation of the streamlined permitting rules as per the new Renewable Energy Directive and a new bent to put forth the IT needed when it comes to the digitalization of permitting processes.
It is worth noting that on auctions, the Member States will happen to make more use of prequalification criteria within critical areas like cybersecurity in order to raise the bar on which turbines can be manufactured in Europe. They will also make sure that the auction prices are indexed so as to reflect increases in input costs. Dearth of indexation happens to be a major issue in certain countries. Wind farm developers win an auction with the said price, and when they go ahead on ordering their turbines a year later, the costs have already gone up, so the price doesn’t work
Member States have also pledged to eradicate long-term visibility by publishing crystal clear auction schedules as well as 10-year plans needed for the expansion of wind and, of course, a 2040 outlook.
To help with the unlocking of investments in Europe’s wind energy value chain, Member States will go on to make full use of the flexibility that’s offered under the EU State Aid Rules that are revised. These go on to help the governments cover a particular percentage of total costs, i.e., an investment within a new factory for the component production of wind turbines.
As far as the infrastructure is concerned, the governments commit to pacing up the necessary funding in ports, roads, as well as electricity grids so as to support the wind expansion. As far as grids are concerned, the Member States are anticipated to execute the excellent measures that are outlined in the recent EU Action Plan for Grids.
