Siemens Energy CEO Acknowledges Challenges in Competing with Chinese-Made Wind Power

In a recent statement, Siemens Energy CEO Christian Bruch acknowledged the challenges faced by the company in competing with Chinese-made wind power, particularly in the offshore wind turbine market. Bruch emphasized that the European Union's scrutiny of Asian wind turbine manufacturers is aimed at creating a "fair competitive environment" rather than protecting the market from competitors.

The admission follows earlier remarks by BASF CEO Martin Brudermüller, who highlighted the cost and performance advantages of Chinese-made offshore wind turbines over their European counterparts. Bruch, during a conference call discussing Siemens' performance, stated, "If we have the right solutions, we can keep pace with China and even surpass them on the international market. However, the issue I see is whether it's truly a fair competitive environment in some countries and regions. It's necessary to talk about this."

Bruch clarified that the concern is not about excluding Chinese manufacturers from the market but rather the difficulty European companies face in entering the Chinese market. While he did not provide specific details, it is known that several Western original equipment manufacturers (OEMs) abandoned attempts to enter the Chinese wind turbine market, especially in offshore wind energy, due to challenges in competing and establishing unfavorable joint ventures in China.

Siemens Wind Power terminated its joint venture with Shanghai Electric, which included turbine production in China, before merging with Gamesa in 2015. Instead, Siemens licensed its onshore 2.5 MW platform and later the up-to-8 MW offshore platform to China Power Investment Corporation.

Chinese manufacturers have significantly increased turbine capacities in recent years, planning or introducing models with capacities up to 22 MW. In contrast, most Western wind energy equipment manufacturers aim to keep their maximum rated power at 15 or 16 MW to ensure profitability from substantial research and development investments.

The European Commission is investigating whether Chinese wind turbine manufacturers benefit from cheap national financing or engage in dumping practices. Despite these challenges, some European developers, such as Statkraft from Norway, are considering the use of Chinese turbines, with China's OEM Mingyang Smart Energy among the companies and consortia applying for Norway's inaugural commercial offshore wind power auction.

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