The Role of China, Siemens & Supply Chains in UK Wind Energy

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Stakeholders debate over whether Chinese investment in British wind energy projects is in the UK's interest or not
As the global leader in wind energy, China is crucial to the global renewable energy supply chain, but many critics denounce its involvement in UK energy

The United Kingdom is no stranger to harnessing the power of the wind.

With its blustery climate, the UK is naturally a perfect location for wind turbines to thrive. The UK government understands this and wants to position the country as a global leader in wind energy.

In fact, one of the Labour government's very first acts upon election was to lift the de facto ban on onshore wind projects that the previous government had presided over.

But the pathway to becoming a leader in the wind is fraught with complexity, especially as the role of international players, particularly China, becomes a focal point of debate.

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The current state of play in British wind energy

The UK government wants to double onshore wind capacity to 30GW and quadruple offshore wind capacity to 50GW by 2030.

With just five years to meet these ambition targets, efficiency and investment are crucial.

Offshore wind farms often take over a decade to become operational and necessitate a lot of hard work when it comes to planning, deployment and grid infrastructure.

Since its conception in mid-2024, Great British Energy has begun working with the Crown Estate to lease sea beds for wind farm projects.

Elsewhere, Scottish Power has agreed a US$1bn contract with Siemens Gamesa to produce 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.”​​​​​​​

Keith Anderson, CEO of ScottishPower

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".

But beyond domestic production, there is growing consideration of international partnerships that might help the government meet its net zero targets. Chief among them is a potential collaboration with China, the global leader in wind power.

Darren Davidson, UK Head of Siemens Energy

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.”

Li Shuo, Director of the China Climate Hub at the Asia Policy Institute | Credit: Li Shuo

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.​​​​​​​

Giles Dickson, CEO of WindEurope | Credit: WindEurope

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.

In 2023, China contributed to two-thirds of all wind energy construction projects

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.

Stewart McDonald, former SNP MP | Credit: UK Parliament

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.”

Jonathan Cole, CEO of Corio Generation | Credit: Corio Generation

Balancing ambition with sustainability

The tension between embracing global partnerships and fostering a robust domestic industry remains unresolved.

While Chinese investment offers a way to increase renewable capacity, some say that it risks undermining the long-term viability of manufacturers like Siemens Gamesa.

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.

Ben Wood, CEO of Anakata Wind Power | Credit: Anakata

“Without their help, support and bridge-building with the ideal Chinese partner companies, this would have been a near impossibility."


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