Installing Chinese Turbines in European Wind Projects – what do you need to know?

Introduction

Hardly a day goes by without China being in the renewables industry headlines. Chinese manufacturers already dominate in the supply of solar photovoltaics (PV) panels used in solar projects across Europe; Chinese firms are also leading producers of battery cells used both in electric vehicles (EVs) and European battery energy storage systems (BESSs).  

Recent years have also seen Chinese original equipment manufacturers (OEMs) of wind turbines make a bold push into the European wind market. In September 2025, one of China’s leading turbine manufacturers, Ming Yang Smart Energy Group (Ming Yang), entered into a strategic partnership with Octopus Energy to potentially install up to 6 GW of wind energy capacity to UK homes and businesses and to “…supercharge the UK’s path to clean, cheap energy”^[1].  

In October 2025, Ming Yang announced its plans to invest up to GBP 1.5 billion (approximately EUR 1.7 billion) to create Britain’s first fully integrated offshore wind turbine manufacturing facility in Scotland, with ambitions to produce and supply offshore floating wind turbines at scale to serve the UK, Europe and the wider international markets. Such a substantial manufacturing base in Scotland is likely to reshape not only its global supply footprint but also the European wind market^[2].  

Our energy practice at Charles Russell Speechlys advises on the life cycle of wind energy projects from inception to decommissioning. In this article energy lawyers Jue Jun Lu (one of the very few Chinese speaking energy lawyers in the UK) and Kevin Gibbs (an energy consenting specialist) outline the opportunities and potential pitfalls in deploying Chinese equipment to deliver a robust and profitable wind energy project.

The case for Chinese turbines

The UK Government has set a strategic ambition to deliver 27–29 GW of onshore wind generated energy by 2030, with new policies aimed at streamlining the planning system, improving grid capacity, and reducing legal barriers. Yet, progress on the ground remains limited. Now that the UK Government has lifted the effective moratorium on onshore wind energy in England, concerns with costs and viability will likely result in new and exciting schemes stalling unless cheaper alternatives are available.

Against this backdrop, there are several factors in favour of Chinese OEMs. In particular:

Price and economic viability

The price differentials between European and Chinese turbine suppliers are nothing new but they have become more prominent recently, following the disappearance of pure fixed price contracts for difference models in some markets. Indeed, in the present context of higher Capex spending and rising costs of capital, economic viability will likely determine whether a wind project will be built or not.

Supply chain availability

The European wind supply chain is concentrated around only a few key turbine suppliers, and it is no secret that some are experiencing major capacity issues with a significant backlog, which is adding to supply chain pressures. As the wind market continues to grow, it calls for newcomers with more capacity to assist in delivering on wind projects needed to achieve the UK and European wind energy ambitions.

Technical innovation and floating wind technology

While some European OEMs have slowed their development of new products, Chinese manufacturers have continued to develop new, larger turbine models – for example, between 2021 and 2025 Chinese OEMs introduced 462 new models, compared to just 29 new models by non-Chinese firms. Further, as existing European turbine developers are unable or unwilling to commit time and resources to validate engineering designs of floating wind projects, this offers Chinese OEMs a growing opportunity to participate in the European market.  

For all these reasons, some predict a meaningful uptick in the installation of Chinese turbines in Europe in the coming years. Indeed, at a recent industry event, it was reported that “half of banks” were open to entertain the possibility of supporting projects featuring Chinese wind turbines in Europe, with the other half likely to consider it in the future[3].  

Bankability concerns and mitigation of risks

Despite the strong economic and technical strengths of Chinese OEMs, there is concern within the European markets as to whether Chinese-manufactured turbines are “bankable”. This mainly boils down to three main issues.

Quality and reliability

Unlike solar panels where 68% of the UK’s solar panel imports came from China in 2024, wind turbines are believed to be far more complex and prone to quality issues and component defects. Other related concerns include certification and alignment (or lack thereof) with European standards.

Operation and maintenance (O&M)

As Chinese OEMs look to expand their presence in the European market, O&M presents a major challenge as Chinese OEMs tend to have limited O&M infrastructure in Europe, creating concerns about spare parts availability and timely servicing. These can result in increased downtime and higher long-term costs.

Regulatory scrutiny and geopolitical factors

These include a range of concerns including political risk, sanctions, export control, tariffs, ESG/human rights concerns, state subsidies and energy and national security.

China is the largest wind market globally, accounting for 62% of all new wind turbines installed globally in 2024. China surpassed the EU in 2015 for the total installed wind energy capacity and  Chinese OEMs have continued to lead the world in developing innovative wind technology.

When presented with attractive value and technical propositions, it is nonetheless important that developers conduct robust technical due diligence, for example, in terms of reviewing track records of Chinese OEMs to understand the relevant turbine technology, conducting site audits to assess quality and reliability, and scrutinising performance-related data, particularly Capex and Opex.

It is also important that great care is taken in negotiating and preparing the relevant agreements (which typically include Turbine Supply Agreement (TSA), Service and Maintenance Agreement (SMA), Power Purchase Agreement (PPA) etc) to put in place robust technical and commercial protections. Depending on the specific issues identified, it may be appropriate to negotiate bespoke mechanisms regarding delay compensation, O&M obligations supported by an enhanced warranty, parent and/or bank guarantees and insurance arrangements to address risks such as delay, material defects, and performance issues. Notably, some Chinese OEMs are known to offer competitive terms such as lower Capex, favourable servicing agreements and deferred payment options, which is well worth bearing in mind during such negotiations.

Conclusion

Chinese OEMs represent a real opportunity to diversify the European wind energy supply chain, offering improved availability, technological innovation and, above all, attractive (and sometimes compelling) value propositions. Whilst there is still some reservation within the lending community, it is anticipated that Chinese turbines will be deployed in commercial European wind projects in the near future.

That said, purchasing and installing Chinese equipment comes with considerable complexity and an array of potential risks for developers, investors and lenders alike. If you are contemplating doing so, it is critical to take legal advice at an early stage.

With a global energy practice and local insight available here in the UK, we are uniquely positioned to support you navigating this evolving landscape and taking full advantage of opportunities with Chinese OEMs to deliver wind projects successfully and profitably.