Energy Brussels stops EU funding for projects with technology from China
Solar installations and other new projects in the energy sector will only receive EU funding if they do not use certain electrical components from countries such as China. Specifically, this concerns smart inverters for converting direct current into alternating current.
04.05.2026, 17:02
SDA
This was announced by the EU Commission. According to Brussels, they pose a potential threat to the EU's electricity grids. In practice, they could be used to remotely shut down the grids of member states and cause nationwide power outages, the spokesperson said.
Suppliers from China, which has a global market share of around 80 percent for inverters, are particularly affected - the Huawei Group is the world market leader for solar systems. Inverters are often smart devices that are connected to the grid to convert direct current into alternating current.
Could third countries in the EU turn off the power?
According to officials, the ban is based on a decision taken by the EU Commission at the beginning of April and applies to all EU funds awarded directly by the Commission or via partner banks. It applies to projects that affect critical infrastructure. The German development bank KfW is therefore also required to comply with the new rule.
A transitional period applies to projects that are already at an advanced stage - they can still be approved until November subject to stricter safety precautions. In addition to China, suppliers from Russia, North Korea and Iran are also theoretically affected by the measure.
