Henrik Andersen, CEO of Vestas Wind Systems A/S, has issued a stark warning to the European Union, indicating that leading wind turbine manufacturers, including Vestas, may be forced to relocate operations outside the bloc if adequate industrial policy support and protection are not swiftly implemented. This ultimatum signals a critical juncture for Europe’s wind energy sector, which is grappling with intense global competition, particularly from subsidized Chinese manufacturers.

The European wind industry, a cornerstone of the continent's energy transition, faces escalating challenges, including rising raw material costs, supply chain bottlenecks, and aggressive pricing strategies from Asian competitors. Chinese manufacturers, benefiting from substantial state subsidies and lower production costs, are aggressively undercutting European rivals, leading to significant market share erosion and financial strain across the continent's wind energy supply chain. Vestas, with its extensive global footprint of over 56,000 turbines installed across 71 countries, is acutely feeling this pressure, despite its established market leadership.

Industry executives argue that while the EU has introduced initiatives like the Green Deal Industrial Plan and the Net-Zero Industry Act, these measures lack the necessary teeth to create a truly level playing field. Concerns persist regarding the slow pace of permitting, insufficient local content requirements, and the absence of robust financing mechanisms, such as competitive Contracts for Difference (CfDs) that adequately reflect the true cost of domestic production and innovation. The current policy framework, many contend, fails to sufficiently incentivize investment in European manufacturing capabilities, leaving companies vulnerable to external market forces.

This precarious situation jeopardizes Europe's ambitious renewable energy targets, its strategic autonomy in critical green technologies, and thousands of high-skilled manufacturing jobs. The potential departure of major players like Vestas would not only diminish Europe's industrial capacity but also increase its reliance on foreign suppliers for essential components, posing significant risks to energy security and the long-term viability of its green transition. The industry is urging Brussels to implement more decisive and protective measures, including stronger trade defense instruments and targeted industrial subsidies, to safeguard its domestic wind energy ecosystem and ensure its global competitiveness.