EU-produced tower
25.5%
EU-produced blades
43.1%
EU-production cost premium(relative to using Chinese products)
Onshore wind
How Union-origin requirements could affect wind costs
Follow the cost effect from individual turbine components to turbine manufacturing and onshore electricity costs.
Core scenario
EU tower and blades
9.2%
All major components EU-produced
64.9%
EU-production cost premium(relative to using Chinese products)
EU tower and blades
4.0%
All major components EU-produced
28.0%
EU-production cost premium(relative to using Chinese products)
01 · Wind turbine and IAA scope
What counts as a wind component?
The EU's official list of main wind-turbine components (adopted under the Net-Zero Industry Act) names the eligible parts. The IAA proposal would require one, then two, of these categories to be Union-origin.
The nacelle sits behind the rotor
It houses the drivetrain and electrical equipment. The list names the nacelle assembly as one main component.
The list separates assembly from its component categories
The list also names the rotor hub, bearings, drivetrain and generator, permanent magnets and gearbox separately. Some sit inside the nacelle; the hub and pitch bearings form part of the rotor.
The blades form the rotor
Blades are a separate category in the list.
The tower supports the turbine
The tower is another category in the list and one of the lower-cost major turbine parts.
Proposed IAA requirement
For wind energy, the IAA proposal would require some components to be Union-origin in public procurement and public auctions
The proposal uses this list but does not prescribe a particular pair. The cost effect depends on which components qualify.
What counts as a main wind component →Official NZIA main-specific-component list02 · The cost effect
A component price increase has a smaller effect on the full wind project
The example uses an EU-produced tower and blades. This is one possible pair under the proposed requirement; the proposal does not prescribe which two components must qualify.
EU-produced components can cost considerably more
The IEA estimates that producing a tower in the EU costs about 25.5% more than in China, while EU-produced blades cost about 43.1% more.
EU-production cost premiumrelative to using Chinese components
The effect becomes smaller at turbine level
In this illustration, the tower and blades are EU-produced. Their additional production cost is measured against the cost of the complete Chinese-reference turbine. The resulting turbine premium is about 9.2%.
Tower 25.5% + blades 43.1%, measured against the complete turbine
EU-production cost premiumrelative to using Chinese components
The effect on electricity cost is smaller again
Major turbine equipment represents about 43.1% of the lifetime cost of onshore wind electricity in this model. The 9.2% turbine premium therefore becomes an increase of about 4.0% in the levelised cost of electricity—the average cost per kilowatt-hour over the project lifetime.
9.2% turbine premium × 43.1% equipment share of lifetime cost
EU-production cost premiumrelative to using Chinese components
Core illustrationEU-produced tower and blades
EU-production cost premiumrelative to using Chinese components
The component comparisons and the equipment share of lifetime electricity cost use the IEA's 2026 estimates.
Commission cross-check.The Commission's impact assessment estimates that an onshore turbine with two EU-produced main components has a 4% higher levelised cost of electricity than the same turbine with these components from China (EUR 48 versus EUR 46 per MWh). It does not say which two components.
03 · Interactive model & sources
Adjust the assumptions
Component premiums compare EU and Chinese production. Turbine and LCOE results use a Chinese-made turbine as the reference. Adjust the values and choose which parts should be EU-produced.
Core scenario
Assumptions
Current selection: tower + blades. Turbine cost increase 9.2 percent; onshore LCOE increase 4.0 percent.
Wind cost results
Evidence on this page
Sources
Component production costs and the onshore equipment share.
Proposed component counts for procurement and auctions, plus the 20% auction threshold.
Commission cross-check: onshore LCOE with two EU-produced main components.