Today the International Energy Agency published its annual Energy Technology Perspectives report, for the first time introducing combined analysis on the interplay between energy, industrial and trade policies. SolarPower Europe contributed to the report. Following the launch webinar, SolarPower Europe has issued the following reaction.
Dries Acke, Deputy CEO at SolarPower Europe (he/him) said:
“This report underlines the massive economic potential of solar PV manufacturing, and serves as clear evidence that Europe must pursue a strong solar industrial strategy.
80% of investment in global clean technology in 2023 was in solar PV and batteries – Europe cannot afford to give up on reshoring solar manufacturing.
The report underlines the energy security benefits of solar – dependency on imports of Russian gas flows is of very different and much higher-risk nature than importing solar PV stocks, certainly as supply chains diversify.
In developing the global solar PV supply chain, we couldn’t agree more: diversification is the magic word, and ‘broad-based protectionism’ is not the way forward. The EU Net-Zero Industry Act must be swiftly implemented at country level, and be complemented by support from the European Investment Bank, as well as a dedicated EU financing instrument for solar manufacturing.”
Notes
- In the six months since the signing of the European Solar Charter, there have been positive steps in supporting solar manufacturing on the continent. However, support is spread unevenly across Europe and is not at the level required. Read our State of Play Report here.
- SolarPower Europe is calling for a robust industrial strategy with a number of key components: the European Commission adjusting State Aid rules to support the running costs of factories, structured support from the European Investment Bank, dedicated EU Financing and speedy implementation of the NZIA. This industrial strategy must be underpinned by clear market access standards that reflect Europe’s Environmental, Social and Governance (ESG) values, in particular via the upcoming EU Eco-design Directive and Energy Labelling rules for solar PV, which have not been concluded yet as well as the Implementation Guidelines of the EU Forced Labour Ban (FLB) regulation and the EU Corporate Sustainability Due Diligence Directive (CSDDD).
- Read our reaction to the Future of EU Competitiveness Report, authored by Mario Draghi, here.
- IEA (2024), Energy Technology Perspectives 2024 Page 33: “Global investment in manufacturing in the five key clean technology supply chains this report focuses on – solar PV, wind, EVs (including batteries), electrolysers and heat pumps – jumped 50% to USD 235 billion in 2023, up from USD 160 billion in 2022. Investments were led by solar PV and batteries, which together accounted for 80% of the total in 2023. China accounted for nearly three-quarters of total investment in 2023, with the United States and the European Union together accounting for around one-fifth. India, Japan, Korea and Southeast Asia accounted for most of the rest, with virtually no investment taking place in either Africa or Central and South America.”
- IEA (2024), Energy Technology Perspectives 2024 Page 25: “Trade policy must be designed carefully if it is to support such goals – broad-based protectionism or blanket financial support are very unlikely to make for a winning industrial strategy.”
Questions? Get in touch.
Bethany Meban
Head of Press and Policy Communications
Header Image
Executive Director of the International Energy Agency, Fatih Birol, speaking at the Solar Power Summit in Brussels, March 2023 © SolarPower Europe
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