The European Commission has officially announced the suspension of EU funding for solar panel inverters manufactured by companies deemed as high-risk vendors, including the Chinese technology giant Huawei. This decision, confirmed on Monday, underscores the EU’s proactive approach to mitigating potential threats to its critical infrastructure from foreign entities.
Commission outlines security concerns
Commission spokesperson Siobhan McGarry conveyed to reporters that the EU executive is taking “concrete action right now” to address these security risks, which include developing guidance that restricts the utilization of EU funds for projects involving inverters from high-risk suppliers. This move is part of a broader strategy to protect the integrity of the EU’s energy systems.
High-risk vendors already engaged in projects funded by the EU can apply for exceptions, allowing them to continue their work. An EU official, who requested anonymity due to the sensitivity of the matter, indicated that a decision on these exceptions will be made by November 1.
Impact of technology on energy systems
Solar inverters play a critical role in converting the electricity generated by solar panels into a form that can be integrated into the electrical grid. Huawei stands out as a leading company in the solar technology sector, raising alarms regarding its influence within the market.
The EU has expressed ongoing concerns regarding Huawei and its rival ZTE, particularly relating to their roles in 5G networks, and is advocating for the removal of these companies from member states’ telecommunications infrastructure—a stance that may soon become a formal requirement.
Recently, apprehensions have intensified regarding Huawei’s substantial presence in the solar technology landscape. According to McGarry, the risks associated with foreign interference in clean energy systems are significant. Potential threats include the manipulation of “electricity production parameters,” disruptions in electricity generation, and unauthorized access to sensitive operational data. Such scenarios could result in severe consequences, including a “remote shutdown … leading to countrywide blackouts.”
The ban specifically targets suppliers from nations including China, Russia, North Korea, and Iran. However, it is noteworthy that Chinese suppliers command approximately 80 percent of the global market share for solar inverters.
In addition to this immediate action, the revised Cybersecurity Act is designed to address these challenges in the medium term. In response to the escalating restrictions on Chinese suppliers in the EU market, Beijing issued threats last week, indicating potential retaliatory measures.
As of now, Huawei has not provided a response to inquiries regarding this matter.