By Kate Abnett
BRUSSELS (Reuters) -The European Union plans to boost financial support for the wind energy sector and scrutinise subsidies of foreign wind product imports, as local manufacturers face increased competition from China, a document seen by Reuters showed.
The draft measures, which the European Commission plans to publish next week, would see the EU and its lending arm, the European Investment Bank, launch a scheme this year to counter-guarantee banks' credit exposures to wind industry suppliers.
The idea is to improve manufacturers' access to financing, at a time when they are being urged to massively expand capacity to help Europe reach its target to get 42.5% of energy from renewable sources by 2030 - nearly double today's share.
The draft document, which could change before it is published, said the EU would also closely monitor "possible unfair trade practices which benefit foreign wind manufacturers" including subsidies for products sold into the European market.
"If justified, the Commission will activate its trade defence instruments," the draft said.
The European Commission last month launched an investigation that could lead to tariffs to protect EU producers against cheaper Chinese electric vehicle imports.
A European Commission spokesperson declined to comment on the draft. Commission President Ursula von der Leyen had promised support for the sector last month.
Most of Europe's installed wind farms have been manufactured locally - setting the sector apart from other green tech sectors like solar panels, where the vast majority of some components are imported.
But pressure is increasing on Europe's wind sector from Chinese competitors - which, the Commission said, have prices typically 20% lower than European manufacturers.
Europe's main turbine makers all posted operating losses in 2022. The sector has warned that it is struggling to grow fast enough to meet green power targets, as firms face record-high inflation, soaring interest rates and volatile energy markets.
The EU will also double to 1.4 billion euros a call for clean tech manufacturers - including wind turbine producers - to apply for EU funding next month, the draft said.
Other measures would prolong a temporary EU law that shortens permitting times for wind projects. Brussels will also develop guidelines for countries' renewable energy auctions that could give local manufacturers an edge - requiring developers to compete not only based on price, but also on cyber-security and sustainability criteria, the draft said.