February 6, 2024, the European Parliament and the Council reached a final agreement on the Net Zero Industry Act (NZIA). The law will help strengthen European production of clean technology and help ensure that the future of wind energy is made in Europe.
Electrification industry
The Net-Zero Industry Act is an initiative that stems from the Green Deal Industrial Plan, which aims to scale up the production of clean technologies in the EU.
The EU wants to have 420 GW of wind energy installed by 2030, compared to 220 GW now. The European wind energy supply chain is now being stepped up to meet this demand. But at the current pace, we are only building half of the wind turbines that the EU needs.
Creating a level playing field and electrifying European industry is indispensable to achieving European objectives in the field of energy security and climate.
Equal playing field
The NZIA focuses in particular on the implementation of sustainable projects. It calls on national governments to apply price indexing. Unlimited negative bidding puts the realization of wind projects at risk because they contribute to the total project risk, which drives up capital costs. This is mainly a challenge with the higher interest rates now. The measures protect the developers against additional costs and ensure a level playing field. So it is very positive that this issue is now being recognized.
The new law also raises the bar for participation in wind energy auctions. Additional criteria have been established in terms of: cybersecurity, entrepreneurship and the ability to carry out projects. National governments can also reward bids based on sustainability, energy system integration or supply chain resilience.
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