The European Commission has confirmed it will not push back the November 1 deadline for phasing out Chinese-made power inverters from EU-funded energy projects, despite mounting pressure from investors and the renewable energy sector. The decision, communicated to Euronews, ends weeks of speculation that Brussels might grant a reprieve.
From November 1, any project connecting to the EU electricity grid must either exclude suppliers deemed high-risk or progressively switch to inverters from companies not on that list. The policy, adopted earlier this year, targets Chinese manufacturers such as Huawei, reflecting growing cybersecurity worries across the bloc.
Cybersecurity concerns drive the policy
The Commission's stance is rooted in the belief that certain inverters could be remotely accessed and manipulated, potentially destabilising national grids and triggering blackouts. This risk, officials argue, outweighs the short-term economic discomfort the transition may cause.
However, the move has alarmed institutional investors, including the European Investment Bank, and renewable energy developers. They question whether alternative producers can deliver the required volumes at competitive costs, especially as energy prices remain elevated across the EU.
At a business roundtable in June, convened specifically to address these concerns, stakeholders pushed for derogations or a phased timeline. Their appeals have now been rejected, leaving many projects to scramble for compliant equipment.
"The Commission's timetable is unrealistic and could create significant financial and practical problems," said one industry representative, speaking on condition of anonymity. "We are already seeing cost overruns and delays in permitting, and this adds another layer of uncertainty."
Internal divisions within the EU executive have also surfaced. The Secretariat-General, which favours a strict line, has clashed with the Directorate-General for International Partnerships, which was more sympathetic to industry concerns. According to sources, the gap has narrowed, with greater alignment now emerging.
Some stakeholders still hope for case-by-case derogations, particularly where delays stem from unforeseen circumstances such as permitting hold-ups. But project managers and investors are now bracing for the reality of the November deadline, revising budgets that extend beyond the inverters themselves to warranties and maintenance services.
The decision comes as the EU grapples with broader energy security issues, including new powers to force electricity cuts in times of crisis. It also reflects a wider push to reduce dependency on Chinese technology, a theme that resonates in other policy areas, such as data centre sustainability labels.
For now, the message from Brussels is clear: the deadline stands. The onus is on the industry to adapt, even if that means higher costs and tighter supply chains. As one EU official put it, "Cybersecurity is not negotiable."
