Solar systems generate 13.4 percent of EU electricity and are a cornerstone of the European energy grid. Solar inverters are the brains behind these systems, converting the direct current generated by panels into the alternating current used by homes and businesses.
Although 61 percent of solar inverters imported into the EU come directly from China, the European Commission is now banning financial institutions such as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development from financing projects that use Chinese components. The measure applies only to projects in development and future installations, and stems from national security and cybersecurity concerns.
“Today’s inverters are connected to the internet so that the manufacturer can carry out software updates and perform maintenance. This means you have to trust that the inverter manufacturer will not carry out malicious software updates that force the inverter to damage the electricity grid. With Chinese inverters, one must also trust the Chinese government, which can instruct any Chinese company to follow its orders. In this way, China could indirectly control hundreds of gigawatts of inverter capacity, which essentially means it could control the European power grid,“ shared Christoph Podewils, Secretary General of the European Solar Manufacturing Company, an EU industry association.
