90% of photovoltaic production is concentrated in 5 developing countries

According to the report, 90% of solar energy production is concentrated in 5 developing countries

A recent report by REN21 shows that solar energy production is geographically concentrated in just five countries, which are estimated to account for over 90% of the world’s solar module production capacity. These countries are reported to be China, which leads with about 80% of the total solar production capacity, followed by Vietnam, India, Malaysia and Thailand.

REN21, a report by the policy network and multi-stakeholder management group, highlighting the development of India’s renewable energy strategy. The report shows that renewable energy around the world is on a path to recovery and progress in 2023, despite persistent challenges and divergences between technologies and regions.

It highlighted that “As the energy crisis of the previous year continued to subside, the world witnessed a remarkable boom in photovoltaics (PV) and a significant increase in energy investment. Global renewable capacity additions in 2023 increased by an estimated 36% to approximately 473 gigawatts (GW), a new record for the 22nd consecutive year2. Solar power drove growth and accounted for three-quarters of all renewable capacity additions in 2023.”

REN21 research finds that China’s growing dominance in the renewable energy components industry is having an impact on U.S. trade policy. As a result, the study found, the United States has increasingly turned to the EU, India, Cambodia, Malaysia, Thailand and Vietnam to import solar panels (in addition to increasing domestic solar production capacity). The report further explained that US support for the Indian solar industry may have unintentionally allowed illegal Chinese solar components (banned due to forced labor) to enter the US in the form of products assembled in India44. The move towards friendshoring and on-shoring is, in part, a response to these challenges, offering a way to strengthen supply chains and diversify the supply of renewable products.

The report stated: “The United States and India have agreed to launch a renewable energy technology platform focusing on wind and geothermal energy, energy storage and hydrogen. The United States and China, in side negotiations at the G20 summit in Bali, Indonesia, reached a climate agreement aimed at accelerating the development of renewable energy and accelerating the reduction of fossil fuels.”

It went on to discuss: “Of the 3,000 GW of projects awaiting grid integration worldwide, an estimated 1,500 GW are at an advanced stage and are located primarily in the United States, Spain, Japan, Brazil, Italy, United Kingdom, Germany, India, Australia , Mexico, Chile and Colombia. About one third of these projects (500 GW) have a good chance of being connected to the grid within five years, as they are in the final stage of signing connection agreements. For the remaining 1,000 GW of advanced projects under analysis, the need for network improvements could delay or halt progress. To further expand support for renewable energy, the newly launched Allied Climate Partners investment platform will reportedly start with $800 million in four funds focused on India, Africa, Southeast Asia, the Caribbean and Central America.