Ban on China wind farm tech will cost Britain ‘decades of cheaper electricity’

Britain’s biggest energy supplier has warned the country will miss out on “decades of cheaper electricity” after ministers concluded that Chinese-manufactured wind turbines are a national security risk.

Executives at energy firm Octopus Energy were baffled by the government’s announcement on Wednesday that products manufactured by Chinese firm Ming Yang should not be used in offshore wind farms.

The turbines are up to 45% cheaper than rival products from European and American manufacturers.

Octopus, which has about 8 million UK customers, said: “Given that Apple and Tesla can secure phones and cars made in China, it shouldn’t be beyond British ingenuity to secure wind turbines, which are dramatically simpler.

“We’ll continue to work on these projects in other countries, but sadly unless the UK government reconsiders, it could miss out on 2,000 jobs, £1bn of hi-tech investment and decades of cheaper electricity.

“We’d urge the government to look very carefully at the risks it now faces of relying on just two wind turbine suppliers in terms of resilience, reliability and value for money for billpayers.”

Ming Yang had announced plans to open a £1.5bn wind turbine plant in Scotland which would have created up to 1,500 jobs. Kate Forbes, Scotland’s deputy first minister, said last week the decision was a “sabotage of Scotland’s industrial future”.

Octopus was in partnership with Ming Yang for a new generation of wind farms, with the UK company implementing the software and the Chinese manufacturer providing the turbines.

The UK energy firm was not informed in advance of the government’s decision to block Ming Yang products, and executives are questioning why Chinese-manufactured hardware, including turbine blades, could be considered a security risk.

Octopus warned the decision will mean higher energy costs for years to come, with experts saying the Chinese-manufactured renewable energy technology could have saved billions of pounds in the capital and operating costs of UK wind farms.

Greg Jackson, the founder and chief executive of Octopus Energy, travelled to China in January with prime minister Keir Starmer. Jackson, who is a government adviser, said after the trip that Britain risked being “left behind” if it failed to collaborate with China on renewable technology. He said: “We need to be prepared to ensure our own security while working and trading with countries who can make people in Britain better off.”

The Danish wind turbine manufacturer Vestas has lobbied the government for a key role in supplying UK wind farms. It will now benefit from the decision to exclude Ming Yang on national security grounds.

On the same day the government confirmed the Ming Yang decision, it was announced Vestas may build a factory manufacturing wind farm components in Scotland, creating up to 500 jobs. It will be conditional on orders from new UK wind farms.

Ming Yang called the decision a “missed opportunity”. The firm said it wanted the government to set out its national security concerns.

In 2022 there were multiple cyberattacks on wind farms in Europe which affected operators’ ability to control and monitor wind turbines. In one case, an operator temporarily cut remote access to 2,000 wind turbines to prevent further damage.

The government decision to block Ming Yang comes after tensions in the UK-China relationship. Three political advisers were arrested earlier this month on suspicion of spying for China.

It appears that there were diplomatic efforts last week to minimise the impact of the Ming Yang decision on relations with China. On Monday, Jonathan Powell, the prime minister’s national security adviser, met with Wang Yi, a senior Chinese politician, in Beijing.

A Chinese government communication stated: “The two sides should deepen cooperation across the board, effectively manage differences and work for the steady growth of China-UK relations.”

Photographs Alamy, HIE