The Role of China, Siemens & Supply Chains in UK Wind Energy
The UK is well-placed to capitalise on its abundant wind resources, with government initiatives pushing it to the forefront of renewable energy.
Onshore and offshore wind projects play a vital role in the country’s journey towards net zero emissions. The Labour government, following its election, wasted no time in lifting restrictions on onshore wind projects, signalling its commitment to renewable energy.
However, achieving leadership in wind energy involves navigating a complex network of supply chains, investment challenges and international partnerships. Among these, the role of China—currently the global leader in wind energy—is a hotly debated topic, particularly in the procurement sector.
Britain's wind energy ambitions and supply chain focus
The UK government is determined to expand its wind capacity, aiming for 30GW of onshore and 50GW of offshore wind by 2030. Achieving these targets demands streamlined procurement processes, efficient planning and significant investments.
Offshore wind farms, in particular, require over a decade of work to become operational due to the intricacies of planning, equipment sourcing and grid integration.
To address these challenges, Great British Energy, launched in mid-2024, has partnered with the Crown Estate to lease sea beds for new wind projects. Meanwhile, collaborations with industry players are driving progress. Scottish Power has agreed a US$1bn contract with Siemens Gamesa to produce turbine blades in Hull for the East Anglia TWO wind farm.
Keith Anderson, CEO of Scottish Power, emphasises the importance of such projects for local supply chains, stating they “will turbo-boost the UK's supply chain, giving companies like Siemens Gamesa the confidence to invest in projects like this blade factory in Hull.”
Similarly, Darren Davidson, UK Head of Siemens Energy, describes the agreement as a “magnificent order” that is fuelling economic growth and job creation in the region.
Despite these domestic efforts, the scale of the UK’s renewable ambitions makes international partnerships crucial. Among potential collaborators, China looms large, both for its dominance in wind technology and the controversies surrounding its practices.
China's influence on global procurement and technology
China’s wind energy industry leads the world, constructing two-thirds of global turbines in 2023. This dominance stems from heavy state investment, totalling over US$100bn, alongside subsidies that allow Chinese firms like Goldwind to offer turbines at competitive prices. These factors have reshaped procurement strategies globally.
“China is leading against all of its competitors when it comes to green technology,” explains Li Shuo, Director of the China Climate Hub at the Asia Policy Institute. “China has a real advantage and has established a huge green industry.”
However, this dominance is not without criticism. Some argue that China’s subsidised wind technology disrupts fair competition.
Giles Dickson, CEO of WindEurope, asserts: “Chinese wind turbine manufacturers are offering much lower prices than European manufacturers and incredibly generous financing terms with up to three years deferred payment. You can’t do that without an unfair public subsidy.”
Beyond economic concerns, environmental issues complicate China’s position in the global supply chain.
Wind turbine manufacturing requires steel and in China, most steel production relies on coal power. In 2023 alone, China added 70GW of coal-fired capacity, accounting for 95% of the global total. This reliance raises questions about the carbon footprint of turbines sourced from Chinese suppliers.
Procurement challenges in UK-China collaboration
The UK’s collaboration with China in wind energy dates back to a 2013 Memorandum of Understanding, which sought to break down technological and market barriers. This partnership has yielded tangible benefits.
For instance, Oxford-based Anakata Wind Power supplies aerodynamic turbine blade enhancements to Chinese projects, improving energy output by 10%. In return, Chinese firms have invested in UK projects like the Beatrice offshore wind farm.
Yet, such collaborations face growing scrutiny.
Despite these successes, scepticism abounds. Stewart McDonald, former SNP MP, criticises plans for Chinese firm Mingyang Smart Energy to supply equipment for North Sea wind farms.
“We are handing over such important capability to the net zero transition to an entity that comes from an authoritarian and hostile state at a time when the European Union and other countries are going in a different direction,” he says.
On the other hand, excluding China from the supply chain could hamper the UK’s ability to meet its targets.
Jonathan Cole, CEO of Corio Generation, a UK-based offshore wind developer, warns that ostracising China could be detrimental to the UK's net zero ambitions.
“If you look at the amount of deployment needed in renewable energy to hit energy transition targets and the current capability of the supply chain, by about 2026/27 every region of the world except China has a shortage of critical components," Jonathan explains.
“If we extract China from the supply chain, what we’re actually going to do is delay the energy transition and make it more expensive. And that’s not in our national interest."
Aligning renewable ambitions with sustainable practices
Balancing these concerns with the urgent need for renewable capacity is a pressing issue for procurement professionals in the energy sector. While Chinese involvement could accelerate progress, over-reliance may undermine domestic manufacturing. The procurement landscape will need to focus on building resilient supply chains while mitigating risks tied to geopolitical and environmental factors.
As Ben Wood, CEO of Anakata Wind Power, reflects: “Anakata is now successfully accessing the Chinese wind energy rotor blade retrofitting market for its innovative aerodynamic add-ons as a direct result of all the hard work of Offshore Renewable Energy Catapult, Innovate UK and the TUS-ORE Catapult Research Centre.”
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