The European Union has moved to cut public funding for clean energy projects using certain Chinese solar technologies, citing growing concerns over the security of the bloc’s power grid.
Officials said the restriction, in place since early April, affects solar inverters—key components that connect renewable energy systems to electricity networks. Often described as the “brain” of solar installations, inverters play a critical role in managing power flows.
The policy applies to new EU-funded projects and primarily affects equipment produced by Chinese firms such as Huawei and Sungrow. Technologies from other countries deemed “high risk,” including Russia, Iran and North Korea, are also covered. Some flexibility has been granted to projects that have already progressed.
Brussels has grown increasingly wary of China’s dominance in the global green technology sector, viewing the bloc’s reliance on foreign suppliers as a potential strategic vulnerability.
“Among the most pressing threats is the risk of disruption of the EU’s critical infrastructure by foreign actors,” said EU spokeswoman Siobhan McGarry. “In practice, this could mean a shutdown, a remote shutdown, of member states’ networks, leading to countrywide blackouts,” she added.
To mitigate these risks, the EU plans to prioritise inverters produced within Europe or sourced from “like-minded” partners such as Japan, South Korea, the United States and Switzerland.
