UK to Cancel 33 Wind Power Component Import Tariffs, Wind Energy Equipment Sector Continues Strong Performance

On March 13, the early trading session saw continued strength in the wind power equipment sector, with Tongyu Heavy Industry rising over 10%. Dajin Heavy Industry, Tianneng Heavy Industry, Goldwind Technology, Zhenjiang Shares, and Shuangyi Technology also gained.

According to Jiemian News, on the news front, the UK will cancel 33 items of wind turbine component import tariffs starting April 1. Core parts such as blades and cables will see their tariffs reduced from 6% and 2% to 0%. The goal is to release £22 billion in investment and accelerate offshore wind installations in the North Sea. As Middle Eastern geopolitical conflicts intensify, Europe’s energy security and independence are more urgent than ever, with offshore wind becoming a key tool to reduce reliance on fossil fuels.

CaiXin Securities believes that the UK, as a leader in European offshore wind, is accelerating the development of offshore wind power.

1. In European offshore wind, the UK accounts for nearly half of the total installed capacity. By the end of 2024, Europe’s cumulative offshore wind capacity will reach 36.66 GW, with the UK at 15.9 GW, Germany at 9.12 GW, and the Netherlands at 4.74 GW. Other major countries include Denmark and France. UK offshore wind makes up 43% of the European market, ranking first in cumulative capacity. The UK also performed well in new installations, with 1.2 GW added in 2024, the highest in Europe.

2. The UK Department for Energy Security and Net Zero (DESNZ) officially announced the results of the seventh round of Contracts for Difference (CfD) allocation on January 14, 2026 (AR7). This auction awarded approximately 8.44 GW of offshore wind capacity, with fixed offshore wind dominating. Floating offshore wind also achieved large-scale bids for the first time in the Celtic Sea and northern Scotland. DESNZ confirmed that after reviewing the bidding structure, the budget for this round was increased from the original £900 million to £1.8 billion.

3. Including the 8.4 GW approved in the seventh CfD round, over 25 GW of UK offshore wind capacity is expected to connect to the grid in the future. Based on the connection schedules of projects not yet installed from previous rounds and the delivery timelines of projects approved in AR7, we believe the UK offshore wind sector will experience a sustained peak in grid connection over the next five years.

4. This tariff reduction covers key segments of the wind power industry chain. Eligible imported products include core components used in manufacturing cables, rotors, blades, as well as electrical systems for wind turbines and offshore substations. We believe this aligns with the upcoming offshore wind installation peak in the UK and will directly reduce manufacturing costs for UK producers, enabling developers using these suppliers to invest more efficiently across the supply chain.

Guosheng Securities points out that due to tight local capacity in Europe, there is optimism for offshore engineering companies like Dajin Heavy Industry, Tianshun Wind Power, and Haili Wind Power to expand overseas. Attention is on the tight capacity of monopile production in European offshore wind, with domestic companies accelerating overseas expansion: Dajin Heavy Industry, Tianshun Wind Power, Haili Wind Power. Also, focus on the penetration of high-voltage cables and flexible direct current (VSC) technology: Dongfang Cable, Zhongtian Technology, Hengtong Optoelectronics. For wind turbine components: Jinlei Shares, Delijia, Weili Transmission, Xinqiang Lian. In the wind turbine sector, optimistic about 2026’s dual offshore & domestic profit growth resonance, with attention to: Yunda Shares, Mingyang Smart Energy, Goldwind Technology, Sany Renewable Energy.