Case builds for cheaper Chinese turbines as wind farms run out of puff

Chinese-made turbines are around one-third of the cost of the European and US-made turbines that dominate the Australian market.

The Burbo bank wind farm off the coast of northeastern England. Picture: AFP

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Australia needs to embrace cheaper Chinese-made wind turbines if it is to get anywhere near meeting the Albanese government’s renewable energy targets, a leading analyst says, as Liberal MP Andrew Hastie warns of risks to national security if Chinese entities expand their presence in the grid.

Not one new wind farm entered development in the national electricity market during the first six months of this year, with the soaring cost of wind turbines smashing the economics of the technology at the centre of the government’s renewable energy transition plans.

The rise in turbine costs has been most acute in the European and US-made turbines that dominate the Australian wind farm market, with Chinese-made turbines now around one-third the price of the established suppliers.

Rystad Energy analyst David Dixon said cheaper Chinese turbines represented the best chance of turning around the fortunes of Australia’s wind growth ambitions. He said in his discussions with industry, there were no signs of costs coming down soon.

“The only thing that might challenge that would be if we had another Chinese turbine supplier enter the market, because Chinese turbines are dramatically cheaper than the Western (manufacturers),” he said.

Mr Hastie, a vocal critic of net-zero targets, said an expanded Chinese footprint in the energy grid would only add to national security concerns.

He told The Australian that with many Chinese suppliers already working across the renew­ables sector, Australia’s energy grid could become increasingly vulnerable to cyber security and foreign interference risks presented by manufacturers’ links with the Chinese Communist Party.

Andrew Hastie. Picture: Richard Dobson / NewsWire

“Not only is Labor’s reckless renewables plan denying Australians of reliable, affordable power, it is also making our critical infrastructure network increasingly vulnerable,” he said. “Labor is so obsessed with meeting their 82 per cent target that they are exposing Australia’s energy grid to increasing risks of sabotage, surveillance and disruption.”

Squadron Energy – the Andrew Forrest-owned company that is Australia’s biggest wind farm company – is understood to primarily use Western wind turbines but a spokesman for the group said they were open to Chinese technology.

“We source wind turbine technology that meets the highest standards of performance, reliability, and safety. We are continuously monitoring global technology developments, including those from Chinese manufacturers,” they said. “Our focus is on proven performance in Australian conditions, a transparent and secure supply chain, opportunities for local maintenance and job creation, and achieving the lowest levelised cost of electricity to deliver affordable energy for Australians.”

Dr Forrest, the founder of iron ore heavyweight Fortescue, has been a vocal advocate for ­Chinese-Australian trade.

Chinese wind turbine company Envision earlier this month entered the Australian market, launching a small-scale pilot project in western Victoria.

Mr Dixon said Chinese companies like Envision and others could consider buying development projects in Australia to demonstrate to the market that they could operate successfully here. That, he said, would help dispel any doubts in the market about whether to choose otherwise unproven Chinese suppliers.

“The grid connection process in Australia is pretty strict, so going with a turbine supplier that hasn’t gone through with a project here before does pose some risks and challenges,” he said.

Australia needs to develop more than five gigawatts a year of wind farm capacity to meet the government’s target of 82 per cent renewables by 2030.