EU Restricts Funding for Chinese Inverters Amid Cybersecurity Concerns

• •The EU has restricted funding for renewable projects using inverters from high-risk vendors.
• •10-20% of financing in the solar market is expected to be affected by these restrictions.
• •Existing Chinese-made inverters pose ongoing cybersecurity risks despite new regulations.

The European Commission has restricted EU funding for renewable energy projects using inverters from 'high-risk' vendors, particularly Chinese manufacturers. This decision could impact 10-20% of financing in Europe's solar market and may extend to wind and battery energy storage systems. The draft Cyber Security Act 2 (CSA 2) emphasizes solar as a priority sector for cybersecurity assessment. Despite the ban on Chinese inverters aiming to enhance supply chain security, over 300 GW of existing Chinese-made inverter capacity remains operational, leaving the grid vulnerable. The reliance on Chinese sub-components in Western inverters complicates the effectiveness of these restrictions. Ongoing discussions among policymakers and industry stakeholders are expected to shape future regulations.