{"id":63436,"date":"2024-05-09T11:16:45","date_gmt":"2024-05-09T18:16:45","guid":{"rendered":"https:\/\/energi.media\/?p=63436"},"modified":"2024-05-09T11:16:45","modified_gmt":"2024-05-09T18:16:45","slug":"surging-investment-in-manufacturing-of-clean-energy-technologies-is-supporting-economic-growth","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/surging-investment-in-manufacturing-of-clean-energy-technologies-is-supporting-economic-growth\/","title":{"rendered":"Surging investment in manufacturing of clean energy technologies is supporting economic growth"},"content":{"rendered":"

This article was published by the International Energy Agency<\/a> on May 6, 2024.<\/em><\/p>\n

Booming investment in the manufacturing of clean energy technologies, especially solar PV and batteries, is becoming a powerful economic driver globally, creating new industrial and employment opportunities, according to a new report from the International Energy Agency released today.<\/p>\n

In a first-of-its-kind analysis,\u00a0Advancing Clean Technology Manufacturing<\/a> finds that global investment in the manufacturing of five key clean energy technologies \u2013 solar PV, wind, batteries, electrolyzers and heat pumps \u2013 rose to USD 200 billion in 2023, an increase of more than 70 per cent from 2022 that accounted for around 4 per cent of global GDP growth.<\/p>\n

Spending on solar PV manufacturing more than doubled last year, while investment in battery manufacturing rose by around 60 per cent. As a result, solar PV module manufacturing capacity today is already in line with what is needed in 2030 based on the IEA\u2019s net zero emissions scenario. For battery cells, if announced projects are included, manufacturing capacity is 90 per cent of the way towards meeting net zero demand at the end of this decade.<\/p>\n

The report finds that many projects in the pipeline will be operational soon. Around 40 per cent of investments in clean energy manufacturing in 2023 were in facilities that are due to come online in 2024. For batteries, this share rises to 70 per cent.<\/p>\n

\u201cRecord output from solar PV and battery plants is propelling clean energy transitions \u2013 and the strong investment pipeline in new facilities and factory expansions is set to add further momentum in the years ahead,\u201d said IEA Executive Director\u00a0Fatih Birol. \u201cWhile greater investment is still needed for some technologies \u2013 and clean energy manufacturing could be spread more widely around the globe \u2013 the direction of travel is clear. Policy makers have a huge opportunity to design industrial strategies with clean energy transitions at their core.\u201d<\/p>\n

Clean energy manufacturing is still dominated by a few regions. China, for example, is currently home to more than 80 per cent of global solar PV module manufacturing capacity. However, the report finds that the manufacturing of battery cells could become less geographically concentrated by the end of this decade; if all announced projects are realized, Europe and the United States could each reach around 15 per cent of global installed capacity by 2030.<\/p>\n

New data and analysis based on plant-level assessments of more than 750 facilities indicate that China remains the lowest-cost producer of all clean energy technologies. Battery, wind and solar PV manufacturing facilities are typically 20 per cent to 30 per cent more expensive to build in India than in China, and 70 per cent to 130 per cent more in the United States and Europe. However, the vast majority of total production costs for these technologies (70 per cent to 98 per cent) is estimated to come from operational costs, which include inputs such as energy, labour and materials \u2013 implying that production cost gaps seen today are not immutable and can be influenced by policy.<\/p>\n

The\u00a0<\/em>report\u00a0\u2013\u00a0<\/em>produced in response to a request from G7 Leaders in 2023 \u2013 provides guidance for policy makers as they prepare industrial strategies with a strong focus on clean energy manufacturing. Acknowledging that there is no \u201cone size fits all\u201d approach, it lays out guiding principles that can inform future planning.<\/p>\n

Advancing Clean Technology Manufacturing<\/em>\u00a0incorporates insights gathered during a\u00a0high-level dialogue<\/a>\u00a0on diversifying clean technology manufacturing held at the IEA\u2019s headquarters in Paris in November 2023. It also builds on analysis conducted as part of the latest edition of the IEA\u2019s flagship technology publication,\u00a0Energy Technology Perspectives<\/a>, and two\u00a0special<\/a>\u00a0briefings<\/a>\u00a0on clean technology manufacturing published last year.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This article was published by the International Energy Agency on May 6, 2024. Booming investment in the manufacturing of clean energy technologies, especially solar PV and batteries, is becoming a powerful economic driver globally, creating [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":63437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[322,120,14,565,606,536],"class_list":{"0":"post-63436","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-business","9":"tag-clean-energy","10":"tag-featured","11":"tag-iea","12":"tag-industry","13":"tag-manufacturing"},"acf":[],"yoast_head":"\nclean energy technologies - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"Investment in the manufacturing of clean energy technologies, especially solar PV and batteries, is becoming a powerful economic driver.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/surging-investment-in-manufacturing-of-clean-energy-technologies-is-supporting-economic-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"clean energy technologies - 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