The European Commission is understood to be reviewing UK government plans to stimulate increased local content during the construction and operation of new offshore wind farms to decide whether they fall foul of existing trade agreements.
UK energy ministry BEIS has outlined plans to introduce a new ‘supply chain plan questionnaire’ which developers must complete to qualify for the 12GW CfD4 subsidy auction, which is due to open later this year.
The questionnaires require developers to outline their procurement strategies in detail and will subsequently be used to ‘pass’ or ‘fail’ the supply chain plans that auction winners must give to BEIS.
Projects with supply chain plans that fail this assessment may be stripped of their supports under controversial new legislation introduced last month.
It is understood these plans, spearheaded by PM Boris Johnson (pictured), have angered Brussels policymakers and prompted the European Commission to launch an assessment of the UK government’s new supply chain measures.
Sources said Brussels is eager to determine whether the new rules will force developers to use local content and whether this violates existing trade agreements between the EU and UK.
The Commission is also evaluating whether the proposals adhere to the UK’s commitments to the World Trade Organisation, sources added.
BEIS told reNEWS the new plans are “in accordance” with the existing UK-EU trade agreement.
“There are no mandatory requirements for supply chains to use UK products, or any other type of mandatory targets,” a spokesperson said.
“We are committed to supporting the UK renewables industry wherever possible, and building sustainable supply chains for low carbon electricity, capable of delivering the Offshore Wind Sector Deal’s industry commitment of 60% UK content.”
The European Commission has been approached for comment.