WindEurope has called on MEPs to endorse Europe’s climate and energy security objectives in the lead Committee on Industry, Research and Energy (ITRE).
The appeal comes as the European Parliament votes on its position for the negotiations with the European Commission and Member States on the Net-Zero Industry Act (NZIA).
WindEurope added although the continent has a world class wind industry, its supply chain has been struggling with inflationary pressures, uncertainty on wind expansion volumes and poor auction design. All of these have undermined its ability to plan and invest in new manufacturing sites to deliver on the EU’s energy security and climate targets it said.
To strengthen and expand European clean tech manufacturing the European Commission presented the NZIA earlier this year, with Commission President Ursula von der Leyen confirming the EU’s determination in her State of the Union Speech, saying: “the future of our clean tech industry has to be made in Europe”.
“The EU wants to deliver its Green Deal with wind made in Europe,” said WindEurope chief policy officer Pierre Tardieu (pictured).
“Tomorrow the Parliament can agree tangible measures to do just that, by boosting the European wind supply chain.
Indexing auction tariffs to reflect higher input costs, ensuring fair competition on the European market, and pushing back against ‘race to the bottom’ auctions will all help.
“This is the right course of action. It’s a matter of security, jobs and autonomy,” Tardieu added.
The ITRE position includes important changes to wind energy auction design. It sets clear and mandatory prequalification criteria for tenders.
This includes new rules for cybersecurity and data residency which will guarantee Europe’s critical energy and grid infrastructure cannot be an easy target for cyberattacks.
The ITRE Committee also proposed an inflation indexation mechanism, with WindEurope stating “inadequate indexation is a big problem right now”.
“Wind developers have had to cancel large offshore wind projects because of it,” the body added.
“They had won an auction with a given price. But high inflation then made turbines and components much more expensive putting the economic viability of wind energy projects at risk.
“Indexing wind energy auctions to reflect input costs will help bridge this financial gap and make sure projects can go ahead. Such indexation mechanism would apply for the time required to sign all supplier contracts.”
The ITRE Committee also wants Member States to stop using negative bidding in auctions. This is when wind farm developers have to pay governments for the right to build a wind farm. Some administrations have introduced negative bidding to their processes as a way to make a quick buck, said WindEurope, adding negative bidding just makes the EU’s energy transition more expensive by creating additional costs for developers which have to be passed on to the supply chain or the electricity consumers.