China Condemns EU Solar Inverter Curbs, Warns Of Impact On Climate Goals

by Stefan J. Bos, Worthy News Europe Bureau Chief

BEIJING/BUDAPEST (Worthy News) – China has condemned the European Union’s ban on public funding for Chinese-made solar inverters, a move that analysts say could affect more than a fifth of new solar capacity and complicate efforts to meet the bloc’s self-imposed “climate targets.”

Brussels imposed the restriction last month, citing concerns that internet-connected inverters supplied by countries it calls “high-risk,” including communist-ruled China, could be used to disrupt Europe’s electricity grid.

Because the devices can receive remote software updates, EU officials argue they could provide a back door for foreign actors to interfere with, or even shut down, critical energy infrastructure.

However, China’s Commerce Ministry said it “firmly opposes” the decision and would take steps to protect the interests of Chinese companies.

EU-CHINA SOLAR DISPUTE ESCALATES

“China refuses to accept and firmly opposes it,” the ministry said in a statement.

“China urges the European side to immediately stop the stigmatization of China as a ‘high-risk country’ and abandon unfair and discriminatory practices against Chinese products,” a spokesperson added.

The dispute comes as Europe seeks to balance energy security concerns with its push toward renewable energy.

Experts warned that the EU-wide restrictions could affect at least 14 gigawatts of new solar capacity, representing more than 20 percent of the bloc’s annual installations, according to Reuters calculations.

CONSUMERS FACE HIGHER COSTS

Analysts say developers may be forced to seek more expensive alternatives, potentially increasing costs for consumers already facing higher energy bills amid geopolitical tensions and the transition to cleaner energy sources.

Inverters, which convert solar-generated electricity into power suitable for the grid, are a critical but often overlooked component of solar energy systems.

Chinese manufacturers, led by Huawei and Sungrow, have supplied roughly 70 percent of Europe’s inverters in recent years, leaving the bloc heavily dependent on foreign-made equipment for a growing share of its electricity needs, Reuters reported.

EU officials insist the measures are necessary to address what they describe as a potential systemic security risk.

ENERGY SECURITY AND CLIMATE GOALS

The European Commission, the EU’s executive arm, has argued that a remote shutdown of inverter networks could pose a serious threat to member states’ electricity systems, potentially leading to widespread blackouts.

Industry groups and solar developers, however, warn that the policy could raise costs and delay projects, particularly in countries where renewable energy expansion depends heavily on public subsidies.

EU officials acknowledge that the restrictions may slow solar deployment and increase costs but maintain that failing to act could leave Europe vulnerable to external interference.

“Every inverter manufacturer has access to their inverters via the internet, for instance to perform firmware updates. And so also the Chinese do,” Christoph Podewils, head of industry group the European Solar Manufacturing Council, said in published remarks.

CHINA EXPANDS ‘GREEN INVESTMENTS’

Sungrow said it strictly complies with EU regulations and incorporates cybersecurity requirements throughout its operations, adding that it had no further comment on the EU decision.

Huawei did not immediately respond to requests for comment.

The controversy comes as China continues expanding its presence in Europe’s green energy and electric vehicle sectors, including in Hungary.

Chinese electric vehicle maker BYD is preparing to open its first European factory in Hungary and has said it plans to begin production of its Dolphin Surf compact electric car there later this year, underscoring Beijing’s growing economic footprint within the European Union.

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