Manufacturing plans for key clean energy technologies are expanding rapidly as investment momentum builds

PARIS, 21st May, 2023 (WAM) Since late 2022, the estimated output by 2030 from existing and announced manufacturing projects is up by 60% for solar PV and 25% for batteries, driven by supportive policies, corporate strategies and growing demand. Announcements of new manufacturing projects for several essential technologies for the clean energy transition including solar PV, batteries and electrolysers have accelerated in recent months, highlighting the growing global momentum behind the new energy economy, according to IEA analysis. Since late 2022, the estimated output by 2030 from existing and announced manufacturing capacity for solar PV has increased by 60%, for batteries by 25%, and for electrolysers by 20%, propelled by policy support and growing interest from investors, says the new special briefing from the IEA’s Energy Technology Perspectives series. The report, The State of Clean Technology Manufacturing, examines announced manufacturing projects for solar PV, wind power, batteries, heat pumps and electrolysers to gauge how these plans could shape the clean energy landscape by the end of the decade. If all the projects announced to date were built, the anticipated output of manufacturing capacity for the five clean technologies would reach USD 790 billion a year by 2030. In that situation, global manufacturing capacity for solar PV would comfortably exceed the level needed in the IEA’s Net Zero Emissions by 2050 Scenario for that technology. Battery manufacturing capacity would also meet the level the scenario envisaged for 2030. To date, manufacturing capacity in clean energy technologies is highly geographically concentrated. The top three markets account for between 80% to 90% of global manufacturing capacity, depending on the technology. If all announced projects worldwide are completed, the share of manufacturing clustered in these markets would shift to between 70% and 95% by 2030 for different technologies. “If we look at the projects that are currently under construction or planned worldwide, China is set to strengthen its leading position in key clean energy technologies,” said IEA Executive Director Fatih Birol. “There is a need for effective international cooperation and further diversification to ensure secure and resilient technology supply chains, meet the world’s climate goals and enable all countries to enjoy the economic benefits of the new global energy economy.”

Source: Emirates News Agency (WAM)