The European Commission is significantly tightening its policy regarding Chinese inverter manufacturers, moving to exclude “high-risk” suppliers from projects receiving EU funding. Citing national security and the protection of critical infrastructure, the Commission aims to prevent potential foreign interference in power grids. These restrictions will apply to initiatives financed through the European Investment Bank and the European Investment Fund. The move follows growing concerns over unauthorized data access and the possible manipulation of electricity feed-in parameters, which could lead to widespread power outages across the continent.
According to internal Commission sources, the new guidelines target suppliers deemed to pose a significant security threat. This decision aligns with a December 2025 communication focused on bolstering the European Union’s economic security. The document identified six priority areas where immediate action is required to mitigate risks, with the potential disruption of critical energy infrastructure by foreign actors topping the list of concerns.
The Commission’s risk assessments highlight specific vulnerabilities associated with a heavy reliance on inverters from a single country. Officials warned that these devices could be used to manipulate power generation settings or gain unauthorized access to sensitive operational data. In a worst-case scenario, such vulnerabilities could be exploited to trigger large-scale blackouts, destabilizing the European energy market.
While the EU’s Cybersecurity Act is expected to provide a medium-term legal framework to potentially ban high-risk suppliers from the entire internal market, the Commission has opted for immediate intervention regarding public funds. New guidelines will restrict the use of EU subsidies for projects utilizing equipment from these manufacturers. This policy specifically targets projects connected to the European power grid that rely on financing from the European Investment Bank (EIB) or the European Investment Fund (EIF).
To minimize disruption to ongoing developments, the Commission has established a transitional arrangement. Projects that have already commenced may continue to receive EU funding provided they are reported to the Commission by May 1. A final decision on these specific cases must then be submitted by November 1. All other future projects will be required to exclude high-risk suppliers entirely to remain eligible for European financial support.