EU Locks Out Chinese Inverters Over Security Fears

The European Commission has ceased public funding for Chinese providers of critical technology used in solar panel installations. This decision, effective November 1, targets inverters essential for energy infrastructure, citing significant security risks to the EU's critical networks.

Commission spokesperson Siobhan McGarry highlighted that foreign actors could potentially use these imported inverters to manipulate energy grids across the bloc and gain unauthorized access to operational data. This could lead to remote shutdowns and widespread blackouts, prompting the urgent action.

This measure aligns with Europe's increasingly stringent approach to Chinese technology imports deemed a security risk. The EU's Industrial Accelerator Act and cyber security act also exclude Chinese companies from public funding for clean technologies and telecommunications networks. The restriction on inverter funding, agreed upon in early April, was officially announced recently.

China dominates the global inverter market, with Europe heavily reliant on these imports. However, European manufacturers and alternative suppliers from countries like Japan and South Korea exist. Using non-Chinese inverters is estimated to increase solar installation costs by less than 2%, as inverters constitute about 5% of total utility-scale solar project costs.