Md. Sakib Ali / X
Blackout in Paris
Financing for China inverters suspended. Critical devices in solar installations are most vulnerable to cyberattacks.
The measure was not formally announced publicly, but the European Commission suspended immediately the financing to energy projects that use certain critical equipment coming from countries considered “high risk” – namely China, but also Russia, North Korea and Iran.
The European Union (EU) stops financing projects that use (mainly) Chinese devices to enable solar energy – a measure motivated by security fears and possible failures in the electrical supply.
The reason for this change of direction is concern about cyberattacks and a possible blackout in Europeresume o .
More specifically, I fear a widespread blackout due to the manipulation of investors. These devices convert direct current (DC) from batteries or solar panels into alternating current (AC), which can be used in standard household outlets.
Inverters are essential devices in solar installations, responsible for converting the electricity produced into usable current and regulating its entry into the grid.
These devices are often connected to the internet, which, according to Brussels, can make them vulnerable cyber attacks. A possible coordinated attack could cause serious disruptions or even large-scale blackouts.
In practice, the ban mainly affects manufacturers Chinese: According to the European Commission, around 80% of inverters installed in the EU come from the People’s Republic of China – largely from manufacturers Huawei and Sungrow.
Furthermore, it includes companies based in other countries, but which are under the control of entities from those States: China, Russia, North Korea and Iran.
Significant impact
The European market depends heavily on Chinese inverters, produced mainly by Huawei and Sungrow, which dominate a large part of solar installations on the continent.
It is estimated that a relevant portion of projects financed by European institutions use this type of technology, which now requires a revision or replacement of components.
European authorities have already asked financial institutions to identify ongoing projects and, whenever possible, replace equipment. Only initiatives at a very advanced stage will be able to benefit from temporary exceptions.
The decision comes in a context of growing concern about external technological dependence and the resilience of critical infrastructures. Industry experts warn that centralizing control in connected devices could, in theory, allow their remote manipulation on a large scale, with potentially serious consequences for the stability of the European electricity grid.
On the other hand, this change could open up space for European manufacturers, who seek to gain share in a market until now dominated by Asian competitors. Still, the transition raises doubts regarding the costs and responsiveness of European industry in the short term.
