EU restricts Chinese inverters: Renewable energy projects at risk

More specifically, they could slow down or even halt the development of renewable energy projects in poorer member states that rely on EU funding, 36 energy companies and investors warned today.

In May, the European Commission banned the use of EU funds to purchase the mentioned components from countries considered high-risk, including China, citing security concerns, Reuters reported.

China currently supplies around 70 percent of the European inverter market. Inverters are a key component of solar, wind, and battery storage systems.

In a letter to European Commission President Ursula von der Leyen, industry representatives said that European manufacturers currently lack sufficient capacity to replace Chinese supplies. This could increase costs, delay projects, and slow investment decisions, particularly in Central and Eastern European countries.

According to an assessment by consultancy firm Wood Mackenzie, between 2026 and 2030 the restrictions could affect around 14 percent of solar projects and 12 percent of energy storage projects in Europe, with Romania, the Czech Republic, and Greece among the most exposed.

Company representatives proposed that the European Union, instead of restricting imports of Chinese equipment, introduce regulations preventing manufacturers from remotely accessing inverters after they have been installed in Europe’s electricity grid.

However, some EU officials believe that such an approach would not provide sufficient protection against potential security threats.