Germany’s Offshore Wind Farm Abandons Chinese Equipment, Turns to Domestic Suppliers.

Concerns and controversies have arisen over security issues, leading to the consideration of canceling orders of Chinese wind turbines in a German offshore wind farm in favor of using domestic equipment.

A German investment company, Luxcara GmbH based in Hamburg, had initially planned to commission the Chinese company “Mingyang Wind Power” to construct a wind farm off the coast of Germany. However, due to national security concerns and domestic disputes, they are contemplating canceling the collaboration with Mingyang and instead opting for wind turbines from Siemens Gamesa Renewable Energy SA, a German-Spanish joint venture.

According to a report by Bloomberg on Monday, Luxcara’s CEO Holger Matthiesen stated their intention to replace Mingyang’s order with a reservation for 19 turbines from Siemens Gamesa Renewable Energy SA.

Luxcara has informed the German Ministry of Economics and approval agencies of their decision to abandon the use of Chinese wind turbine units. The capacity reservation agreement with Siemens Gamesa is still pending final confirmation and requires the signing of official contracts.

The collaboration agreement between Luxcara and Mingyang was signed in 2024 and attracted scrutiny from the German government due to the sensitive nature of energy supply, raising concerns about national security and unfair competition. This dispute has also garnered widespread attention in the European wind power industry.

A study released earlier in 2025 by the German Ministry of Defense warned that Beijing could exploit critical components of Luxcara’s wind farm for espionage activities or even economic warfare.

Mingyang, headquartered in Guangdong Province, China, is the largest offshore wind turbine manufacturer in China. Founded by Zhang Chuanwei, who has a background in the military, the company employs over three hundred retired military personnel in key positions.

Recently, German regulatory authorities have introduced new regulations, including strengthening control over key infrastructure.

Matthiesen acknowledged feeling pressure from the government and hearing public controversies. He stated that the decision to switch partners was based on optimizing contract terms and risk-sharing with suppliers, emphasizing the benefits of synergy and more competitive pricing.

Initially, Mingyang was chosen in 2024 due to the lowest bid. However, Matthiesen mentioned that subsequent bids from other companies had improved.

Luxcara’s two projects are now planned to transition from using Mingyang equipment to equipment from Siemens Gamesa Renewable Energy SA.

Matthiesen expressed Luxcara’s security concerns regarding Chinese wind turbine units.

In terms of offshore wind power equipment construction, there are primarily two suppliers in Europe: Vestas from Denmark and Gamesa, a German-Spanish joint venture under Siemens. A report from the German “Handelsblatt” noted that German wind farm operators were engaging with Chinese companies due to the immense demand for wind turbines, which European companies were unable to meet adequately.

The report also highlighted that Chinese green energy companies receive significant subsidies from the Chinese government. A study cited by the “Handelsblatt” from the Kiel Institute for World Economy indicated that 99% of Chinese publicly-listed companies in the new energy sector received direct government subsidies in 2022. Furthermore, the government offers additional support to companies, such as facilitating access to crucial raw materials, mandating technology transfers in joint ventures, and providing assistance in public tender activities.

Government subsidies benefit companies like Mingyang in the Chinese wind energy sector. The author of the study, Dirk Dohse, pointed out that in terms of pricing, European companies often struggle to compete with Chinese firms. These subsidized Chinese products make it nearly impossible for European companies to gain a competitive edge.

A spokesperson from Siemens Energy AG, the parent company of Siemens Gamesa Renewable Energy SA, confirmed the agreement but declined to provide further details.