Companies Call for Delay in EU Restrictions on High-Risk Energy Equipment

A group of companies developing renewable energy and battery storage projects across Central and Eastern Europe has sent a letter to European Commission President Ursula von der Leyen concerning interim guidance restricting the use of European Union funds for projects that install inverters and power conversion systems supplied by vendors classified as high risk.

These devices play an important role in the operation of solar and wind power plants, as well as battery storage facilities, and in connecting such systems to the electricity grid. Because they can be remotely monitored and controlled, the equipment is also considered important from a cybersecurity perspective.

The letter was submitted on 7 July by the Central and Eastern European Clean Energy Industry Alliance and was signed by representatives of more than 30 companies and investment groups operating across the region, the Baltic states and Ukraine. It was also sent to the European Commissioner for Energy and European financial institutions.

Although the letter does not name specific manufacturers, the signatories point to the widespread use of Chinese equipment and the European market’s dependence on Chinese supply chains.

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The companies say they support stricter rules aimed at protecting energy systems, but argue that automatically excluding suppliers solely on the basis of their country of origin is not the most effective approach. In their view, equipment security should be assessed on the basis of the devices’ technical characteristics, software, remote access controls, communication protocols and certification, regardless of where the equipment was manufactured.

According to the signatories, the new rules could have a particularly strong impact on Central and Eastern Europe, where a large number of projects depend on EU funds and development banks. European support, including financing from the Modernisation Fund and the Recovery and Resilience Facility, is often essential for securing investment in this part of Europe, unlike in the more developed markets of Western Europe, where investors generally have better access to commercial loans and long-term power purchase agreements.

The companies cite Bulgaria, where battery storage systems are expanding rapidly, and Poland as examples of markets that could be particularly affected. In Poland, the Modernisation Fund has supported 180 projects with a combined generation capacity of 3.9 gigawatts and storage capacity of 14.5 gigawatt-hours.

Projects for which contracts have already been signed, equipment ordered, financing secured and grid connection deadlines established could be especially exposed to the new restrictions.

The signatories are therefore calling on the European Commission to assess the impact of the new rules, introduce a transition period lasting at least until 2030 and protect projects that are already under development.

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