The International Energy Agency (IEA) has recently released its “Advancing Clean Technology Manufacturing” report, shedding light on the significant growth in global investment in the manufacturing of photovoltaic (PV) panels, wind turbines, batteries, electrolysers, and heat pumps. The report states that the investment in these sectors rose to an impressive $200 billion in the previous year, marking a substantial 70% increase from 2022.

Of particular note is the remarkable surge in spending on PV manufacturing, which more than doubled last year. Additionally, investment in battery manufacturing experienced a substantial increase of 60% according to the report. Notably, around 40% of investments in clean energy manufacturing in 2023 were in facilities that are scheduled to come online this year, with the share rising to 70% specifically for battery production.

The executive director of IEA, Fatih Birol, emphasized the pivotal role that record output from solar PV and battery plants plays in driving clean energy transitions. He highlighted the strong investment pipeline in new facilities and factory expansions, suggesting that it will further accelerate momentum in the years ahead.

However, the report also underscores the need for greater investment in certain technologies and emphasizes that clean energy manufacturing should be more widely distributed globally. Currently, a few regions, notably China, dominate clean energy manufacturing, with China hosting over 80% of global PV module manufacturing capacity.

This report, produced in response to a request from G7 leaders last year, seeks to provide essential guidance for policymakers as they develop industrial strategies focused on renewables manufacturing. It presents a critical opportunity for policymakers to craft robust industrial strategies centered on clean energy transitions.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The solar energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.