Today, the International Energy Agency (IEA) published its annual “Energy Technology Perspectives” report, which for the first time includes a combined analysis of the interaction between energy, industrial, and trade policies. The report reveals that SolarPower Europe contributed to its preparation. After the launch webinar, SolarPower Europe issued the following reaction.

Dries Acke, Deputy Director General of SolarPower Europe (he/she), stated: “This report highlights the immense economic potential of photovoltaic solar manufacturing and provides clear evidence that Europe must adopt a strong solar industrial strategy.

In 2023, 80% of global clean technology investment will be directed towards photovoltaic solar energy and batteries: Europe cannot afford to forgo repatriating solar production.

The report emphasizes the benefits of solar energy for energy security: the dependence on Russian gas imports is very different and much riskier than importing stocks of photovoltaic solar energy, especially as supply chains diversify.

“When it comes to the development of the global photovoltaic solar supply chain, we couldn’t agree more: diversification is the key word, and ‘broad-based protectionism’ is not the way forward. The EU Net-Zero Industry Act must be implemented quickly at the country level and complemented with support from the European Investment Bank, as well as a specific EU funding instrument for solar manufacturing.”

SolarPower Europe’s Point-by-Point Observations

• In the six months since the signing of the European Solar Charter, positive steps have been made in supporting solar manufacturing on the continent. However, the support is unevenly distributed across Europe and does not reach the required level. Read our report on the current situation here.
• SolarPower Europe calls for a strong industrial strategy with a series of key components: the European Commission must adjust state aid rules to support the operational costs of factories, structured support from the European Investment Bank, specific EU funding, and the swift implementation of the NZIA. This industrial strategy must be backed by clear market access rules that reflect Europe’s environmental, social, and governance (ESG) values, particularly through the upcoming EU Ecodesign Directive and the energy labeling standards for photovoltaic solar energy, which have not yet been finalized, as well as the EU regulation on forced labor (FLB) and the EU Directive on corporate sustainability due diligence (CSDDD).
• Read our reaction to the Report on the Future of EU Competitiveness, written by Mario Draghi, here.
• IEA (2024), Energy Technology Perspectives 2024 Page 33: “Global investment in manufacturing across the five key clean technology supply chains focused on in this report—photovoltaic solar, wind, electric vehicles (including batteries), electrolyzers, and heat pumps—increased by 50% to USD 235 billion in 2023, up from USD 160 billion in 2022. Investments were led by photovoltaic solar and batteries, which together accounted for 80% of the total in 2023. China accounted for nearly three-quarters of total investment in 2023, while the United States and the European Union together represented about one-fifth. India, Japan, Korea, and Southeast Asia represented most of the rest, with almost no investment in Africa or Central and South America.”
• IEA (2024), Energy Technology Perspectives 2024 Page 25: “Trade policy must be carefully designed if such objectives are to be supported; broad-based protectionism or generalized financial support are unlikely to constitute a successful industrial strategy.”