Enercon Technology Chief Warns US Subsidies Could Skew European Wind Competition

US Tax Credits Threaten EU Trading Environment

The chief technology officer of Enercon, one of the world’s leading wind turbine manufacturers, has expressed concerns that the US government’s subsidy programs for the renewable energy industry could distort the competitive landscape in Europe.

US Subsidies Create Unfair Advantage

According to Eberhard Boehm, Enercon’s CTO, the US government’s Production Tax Credit (PTC) and Investment Tax Credit (ITC) programs have created an uneven playing field for European wind turbine manufacturers. The PTC and ITC offer tax credits to companies that invest in renewable energy projects, making it a more attractive option for developers to choose American-made turbines over European ones.

Cost Advantage Disproportionate to EU Tax Incentives

While EU countries offer tax incentives for renewable energy projects, they pale in comparison to the US programs. The EU’s feed-in tariffs (FITs) and renewable portfolio standards (RPS) provide a smaller and less consistent support for the industry. This has resulted in a cost advantage for US manufacturers, making it difficult for European companies to compete.

EU Loses Out on Project Awards

The unequal competition has already had a significant impact on the global wind energy market. Many EU-based projects have been awarded to US manufacturers, with some European firms withdrawing from tenders altogether. According to Boehm, this has led to a loss of market share and revenue for European companies.

Lack of Transparency and Consistency

Boehm also expressed concerns about the lack of transparency and consistency in the US subsidy programs. "The US policies are not transparent, and the rules are constantly changing," he said. "This uncertainty makes it difficult for European companies to plan and invest in the long-term."

Conclusion

The US government’s subsidy programs have created an uneven playing field, favoring American wind turbine manufacturers over their European counterparts. This has significant implications for the global wind energy market, with EU-based companies at a disadvantage in the competition for project awards. Enercon’s CTO urges the EU to re-evaluate its own incentives and develop a more robust support system for the industry to remain competitive.

Frequently Asked Questions

• What are the US’s Production Tax Credit (PTC) and Investment Tax Credit (ITC)?
  • The PTC provides a tax credit of 2.2 cents per kilowatt-hour for eligible renewable energy projects, while the ITC offers a tax credit of 30% of the total project cost.
• How do EU countries support the wind energy industry?
  • EU countries offer tax incentives, such as feed-in tariffs and renewable portfolio standards, to encourage the development of renewable energy projects.
• What is Enercon’s position on the US subsidy programs?
  • Enercon, as a leading wind turbine manufacturer, believes that the US subsidy programs create an unfair advantage for American companies and urges the EU to develop a more robust support system to remain competitive.