German firm may drop Chinese turbine deal for North Sea wind farm

New Delhi, Aug 27 (IANS) Hamburg-based asset manager Luxcara is likely to cancel a deal with Chinese company Ming Yang Smart Energy for its Waterkant offshore wind farm in the North Sea.

The company reportedly said the decision is mainly for operational reasons, but admitted that improved security and supply chain independence are also “positive side effects.”

Last year, Luxcara had announced that Ming Yang would supply turbines for the 300-megawatt project.

Now, it has reserved capacity for 19 turbines from Siemens Gamesa, a subsidiary of Siemens Energy.

Luxcara explained that this switch would ensure smoother operations, as the same turbines are already being used in its neighbouring 1.5-gigawatt Waterekke project, the largest offshore wind project it has ever undertaken in Germany, according to the reports.

The original deal with Ming Yang came under scrutiny after the European Commission began reviewing Chinese wind turbine makers over possible market distortions in several EU countries.

Although Luxcara said politics did not drive its decision, it admitted that the move fits well with political priorities related to technology security and reducing dependency on China.

The change also eases pressure on German Chancellor Friedrich Merz, who might have faced the tough choice of blocking the deal with China just months before his first official visit to Beijing.

Merz has publicly taken a strong stance on China, promising to reduce Germany’s reliance on it, especially given Beijing’s close ties with Russia.

Siemens Gamesa, despite facing financial and quality issues in the past, will now have the chance to prove that European firms can compete with Chinese rivals in the wind energy sector, the report said.

Ming Yang confirmed that it is no longer involved in the Waterkant project but said it will continue looking for opportunities in Germany, including possible local production.

The Waterkant wind farm is planned to connect to the grid by the end of 2028. Once completed, it is expected to supply enough electricity to power around 400,000 households, the report said.

--IANS

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