Europe’s wind industry warned Germany that a deal for 16 Chinese offshore wind turbines risks fostering unfair competition for local suppliers and poses a threat to the region’s energy security.

Earlier this month, German asset manager Luxcara GmbH agreed that Ming Yang Smart Energy Group Ltd. would supply the turbines — the biggest model on the market — for its 270-megawatt Waterkant project in the North Sea, due to be installed in 2028.

Giles Dickson, chief executive officer of lobby group WindEurope, said the deal marks a blow to the EU’s clean tech sector, but also creates risks for the region’s energy security. It also prompted scrutiny from Berlin.

Wind turbines typically have around 300 sensors, which can be used to transmit important data, while the performance of the infrastructure — such as the angle of the blades — could be controlled by a foreign party.

“The European offshore wind supply chain was ready — is ready — to deliver a turbine made in Europe to this project,” Dickson said in an interview. “The European Union and Germany and any other countries building offshore wind farms have got to decide if wind energy is a strategic sector before it’s too late.”

In recent years, the EU has tried to “level the playing field” vis-a-vis Chinese manufacturers, including by introducing pre-qualification criteria on sustainability and cyber security for renewables auctions.

The EU has also used a new tool — the foreign subsidies regulation — to probe wind farms across Europe that have Chinese involvement.

Dickson said Chinese manufacturers are benefiting from subsidies, but also deferred payments of up-to three years, giving them an unfair advantage on global markets. European manufacturers can only offer such a benefit for one year under OECD rules.

BloombergNEF estimates that onshore turbine prices were 67% cheaper in China compared to the rest of the world for contracts signed in the second half of last year.

Only one project in Europe has bought Chinese turbines previously — Italy’s “nearshore” wind farm in Taranto. Yet WindEurope calls that an “exception” as it has barely a tenth of the capacity of the Waterkant project, and the turbines were originally ordered from a German manufacturer that went bankrupt.