At the end of October, the European Commission presented an action plan to support the successful deployment of wind energy in the EU. The European Union's ambitious goal of achieving at least 42.5% renewable energy by 2030, with aspirations to reach 45%, will require a significant increase in wind power capacity. However, the path to achieving these targets will find many obstacles on the way, ranging from slow permitting processes and raw material shortages to global competition and trade imbalances.
Several challenges need to be carefully considered to set up efficient action:
One of the main threats to the European wind power industry is the uncertain and sometimes insufficient demand for wind power.
Shortages in essential raw materials also pose a significant challenge. Securing a stable supply chain for materials depends on diverse factors, including geopolitical elements that are hard to predict.
Global competition coupled with unfair trade practices threatens the market share of European wind power manufacturers. While addressing this issue, the EU should be careful not to start trade wars.
This action plan, however, represent a significant opportunity to boost the competitiveness of the European wind sector.
Facilitating access to finance through initiatives like the Innovation Fund and collaboration with the European Investment Bank will likely attract investments. Financial support will encourage the development of cutting-edge projects and strengthens the industry's financial stability, enhancing predictability for economic operators.
While lengthy permitting processes remains one of the major obstacle to the success of this initiative, streamlining these processes will be key in accelerating wind power deployment and ensuring the industry's competitiveness.
To give full effect to this action plan, stakeholders in the wind industry should be involved in the collaboration platforms that are expected to be set up e.g. “Accele-RES”.
Through strategic initiatives, the industry will be able navigate these challenges, unlock new economic opportunities.
Contact any of our United Government Affairs network members to analyse the threats and opportunities behind this initiative and engage in policymaking.