Brussels has told European partner banks to stop financing renewable projects using Chinese, Iranian or Russian grid equipment from 1 November, a move that could harden the EU’s stance towards Beijing.
The measure targets inverters – key devices connecting renewables to the grid – effectively restricting their use in EU-funded projects, a Commission official told reporters on Monday.
The decision, which was adopted at a meeting of the Commission’s top brass in April and was first reported by South China Morning Post, concerns primarily the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), but also national banks like Germany’s state-lender KfW, the official said.
Inverters, often called the “brains” of solar panels, control how much electricity is fed into the grid – and, if enough of them are hijacked, they could trigger blackouts if tens of thousands were shut down simultaneously.
The restriction extends to any project connecting to the EU’s grid, including in Morocco and the Balkans. The EIB in particular funded 20% of EU solar deployment in 2025, the official said.
From 2018 to 2024, Europe’s imports of Chinese inverters – produced largely by Huawei and Sungrow – surged from a 45% share to a 61% share, according to a recent report.
Inverters are also used by wind turbines and batteries – where China commands similarly dominant market shares – with the latter “explicitly included”, according to an internal memo seen by Euractiv.
“Future extension to other PV components is possible,” the memo adds.
(aw)
