Evaluating China's Involvement in UK Wind Manufacturing
The United Kingdom has long recognised the potential of harnessing wind power.
With its often windy climate, the UK is ideally situated for wind turbines to flourish. The UK government is keen to capitalise on this advantage and aims to establish the country as a global leader in wind energy.
In fact, one of the first actions taken by the Labour government upon election was to lift the de facto ban on onshore wind projects that had been imposed by the previous administration.
However, the journey towards becoming a leader in wind energy is far from straightforward, especially as the involvement of international players, particularly China, becomes a key point of contention.
The drive to boost British wind energy
The UK government aims to double onshore wind capacity to 30GW and quadruple offshore wind capacity to 50GW by 2030.
With just five years left to achieve these ambitious targets, efficiency and investment are vital.
Offshore wind farms typically take over a decade to become operational, requiring significant effort in planning, deployment and grid infrastructure.
Since its establishment in mid-2024, Great British Energy has been collaborating with the Crown Estate to lease seabeds for wind farm projects.
Meanwhile, Scottish Power has secured a US$1bn contract with Siemens Gamesa to manufacture turbine blades in Hull for the East Anglia TWO 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.”
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".
In addition to domestic production, the government is increasingly looking towards international collaborations to help achieve its net zero goals. A key opportunity lies in partnering with China, the world's leading player in wind power development.
China: Partner or competitor?
China’s dominance in the global wind power supply chain presents both opportunities and challenges.
In 2023, China's wind industry accounted for two-thirds of global turbine construction. Its astronomical growth can be attributed to huge investment (around US$100bn) and state subsidies.
This financial backing has allowed Chinese manufacturers like Goldwind to deliver turbines at prices that western companies often struggle to match.
“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.
“China has a real advantage and has established a huge green industry.”
Yet, this meteoric rise has not occurred without controversy.
Critics, including Giles Dickson, CEO of WindEurope, believe that subsidies for Chinese wind technology suppliers constitute foul play in economic terms.
“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 says.
Allegations like these have led the European Commission to launch anti-trust investigations into whether Chinese wind turbines disrupt fair competition.
Further complicating matters, environmental concerns persist around China's reliance on coal for turbine production.
Steel, a critical material in turbine manufacturing, is mostly manufactured using coal power in China.
In 2023, China added 70GW of coal-fired power capacity, accounting for 95% of the global total, raising questions about the broader environmental footprint of its wind power industry.
The UK and China: Collaborative ventures and concerns
It's important to remember that UK and China have, for a long time, been partners in wind energy.
This partnership dates back to 2013 when a Memorandum of Understanding was signed to remove technological and market barriers for both nations. This collaboration has led to several high-profile ventures.
Oxford-based Anakata Wind Power has supplied aerodynamic turbine blade enhancements to Chinese wind farms, which could improve energy output by 10%.
In return, Chinese investments have flowed into UK projects, including the Beatrice offshore wind farm and the Green Volt floating offshore wind project in Scotland.
Despite these successes, scepticism abounds. Stewart McDonald, former SNP MP, criticises plans for Chinese firm Mingyang Smart Energy to supply equipment for North Sea wind farms.
“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.
Others argue that excluding China could delay the energy transition.
Jonathan Cole, CEO of Corio Generation, a UK-based offshore wind developer, warns that ostracising China could be detrimental to the UK's net zero ambitions.
“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," Jonathan explains.
“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.”
Sustainability & ambition
The challenge of striking a balance between forming global partnerships and strengthening the domestic industry remains a key issue.
While collaboration with China could help accelerate the growth of renewable energy, there are concerns that it might undermine the future stability of UK manufacturers, such as Siemens Gamesa.
As the UK works towards its renewable energy goals, finding a way to navigate these conflicting demands will be crucial to shaping the nation's approach.
As the UK charts its course toward a renewable energy future, these competing priorities will undoubtedly shape its approach.
“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,” says Ben Wood, CEO of Anakata Wind Power.
“Without their help, support and bridge-building with the ideal Chinese partner companies, this would have been a near impossibility."
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