It’s not yet viable to lend money to a wind farm in Europe that opts to use potentially cheaper Chinese wind turbines, according to Lisa McDermott, managing director for project and infrastructure finance, at ABN AMRO Bank NV.
Author of the article:
Bloomberg News
William Mathis
Published Oct 08, 2024 • Last updated 8hours ago • 1 minute read
(Bloomberg) — It’s not yet viable to lend money to a wind farm in Europe that opts to use potentially cheaper Chinese wind turbines, according to Lisa McDermott, managing director for project and infrastructure finance, at ABN AMRO Bank NV.
We apologize, but this video has failed to load.
Try refreshing your browser, or
tap here to see other videos from our team.
Chinese Wind Turbines Aren't Yet Viable in Europe, ABN Amro Says Back to video
While the prospect of Chinese suppliers moving into Europe could potentially cut costs for the renewable power source, it threatens to undermine incumbents like Denmark’s Vestas Wind Systems A/S and Germany’s Siemens Energy AG just as Europe tries to boost local manufacturing in the transition away from fossil fuels.
Advertisement 2
Story continues below
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
View more offers
Article content
Wind farm developers in the UK have been calling McDermott to ask about the potential to use Chinese suppliers for their projects, she said at the BloombergNEF summit in London Tuesday. So far she’s given them a simple answer.
“Would I finance Chinese turbines? I’ll be honest, probably not,” she said. “The main reason is a lack of familiarity with Chinese manufacturers.”
That could change with time, McDermott said. Banks like hers would need more information, such as technical information about the machines’ performance and third-party certifications.
If lower costs are the reason for a European company’s decision to use the Chinese-made turbines, McDermott would want to know. And she’d like for investors to see some of the returns, after profits have been squeezed in recent years.
“If the answer is cost reduction, I’d say, ‘Will you share that with financing parties?,’” she said.
Article content
Comments
You must be logged in to join the discussion or read more comments.
Create an AccountSign in
Join the Conversation
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
Trending
- Lululemon founder Chip Wilson's Vancouver mansion defaced after election sign went up
- Boomers are giving kids money before they die in ‘dysfunctional’ system
- 7 of the silliest and politically motivated tax policies recently introduced in Canada
- Canada's banks should prepare for the risk of a failure, says C.D. Howe expert
- Former Bank of Canada official Paul Beaudry sees jumbo rate cut in October
Read Next