The European Commission will gradually eliminate Chinese-made inverters from EU-funded energy projects, according to an EU official. The official stated that serious economic and cybersecurity risks have been identified. The official described inverters as a small but crucial component, the 'brain' of electricity networks.
The risk assessment drew on both classified and non-classified evidence provided by multiple member states, the official said. The official warned that countries including China, Iran, North Korea, and Russia could potentially undermine European energy infrastructure and trigger blackouts. The official noted that in November, 30 MEPs asked the Commission to prevent risky technology providers from accessing European infrastructure. The official emphasized that the EU is framing the move as an economic security measure, not industrial policy.
Companies from trusted partners such as Japan and South Korea will remain eligible for EU-funded projects, the official stated. The Commission hopes the initiative will encourage EU countries and international partners to adopt similar approaches, the official added. Lithuania has already taken steps to impose restrictions on high-risk energy technologies, the official noted. The decision follows a policy first outlined in December 2025 to reduce dependencies on security risk suppliers, the official explained. The new guidance applies across all EU funding instruments, including financing from the EIB and EBRD, the official confirmed. The restrictions will be enforced through existing tools, not new legislation, the official said. The timeline for the phase-out and its impact on existing projects remain unclear, and specific evidence justifying the risk assessment has not been disclosed.