IEA report: global manufacturing capacity is expanding rapidly for solar, wind, batteries, electrolysers, heat pumps

Jun 19, 2023

June 6, 2023 by IEA

The IEA summarises its special briefing, "The State of Clean Technology Manufacturing." It's a global update on recent progress in key regions, focussing on five technologies – solar PV, wind, batteries, electrolysers and heat pumps – critical to the energy transition. It should be read to keep decision makers informed of investment trends and the impact of industrial strategies. Overall, manufacturing capacity for these technologies is expanding rapidly, with solar PV on track to meet its 2030 targets for a net-zero world and batteries not far behind. The short lead times in ramping up production mean wind, electrolysers and heat pumps can close their gaps quickly, provided they are given all the right support. The briefing covers announced projects, actual manufacturing capacity growth, geographical concentration, regional supply and demand, supply chains, and more. This summary ends by pointing at the policy recommendations in the full report.

Technology manufacturing plays a pivotal role in the energy transition required to meet climate, energy security and economic development goals. Deploying clean energy technologies at the pace required to put the world on a trajectory consistent with net zero emissions by mid-century will demand rapid expansion in manufacturing capacity, underpinned by secure, resilient and sustainable supply chains for their components and materials.

This Energy Technology Perspectives Special Briefing, The State of Clean Technology Manufacturing, provides an update on recent progress in clean energy technology manufacturing in key regions. It focuses on five technologies – solar PV, wind, batteries, electrolysers and heat pumps – that will be critical to the energy transition.

Manufacturing capacity for these technologies is expanding rapidly, driven by supportive policies, ambitious corporate strategies and consumer demand. The aim is to keep decision makers informed of investment trends and the impact that recent industrial strategies are having in these highly dynamic sectors.

This special briefing was produced to support deliberations at the 2023 G7 Leaders’ Summit in Hiroshima, Japan, from 19-21 May 2023. It builds on analysis in the latest edition of the IEA's flagship technology publication, Energy Technology Perspectives 2023 (ETP-2023), published in January 2023, to take into account the latest announced expansions in manufacturing capacity.

This report is part of the IEA's support of the first global stocktake of the Paris Agreement, which will be finalised in the run up to COP28, the next UN Climate Change Conference, at the end of 2023. Find other reports in this series on the IEA's Global Energy Transitions Stocktake page.

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This article is taken from the IEA Newsroom and is published with permission

Filed Under: Energy, HVAC, Hydrogen, Renewables Tagged With: batteries, China, demand, electrolysers, EU, HeatPumps, IEA, India, manufacturing, solar, supply, US, wind