Global Solar PV Manufacturing Dominance By China Poses Elevated Disruption Risks IEA

10/17/2024 6:03:16 AM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 17. Global solar PV and battery manufacturing dominance by China poses elevated disruption risks, Tim Gould, Chief energy Economist, International Energy Agency (IEA), said, as he was addressing the World Energy Outlook 2024, Trend reports.

“A very high share of solar PV and batteries' manufacturing capacity is within an individual country, within China. And that concentration presents an elevated risk of disruption, whether that's from geopolitical tensions or extreme weather or even a simple industrial accident,” he said.

Gould pointed out that the world is heading into a new market context, marked by ample supply in key markets and the possibility of downward pressure on prices.

“But that's no reason for complacency when it comes to energy security. We certainly won't be taking our eyes off potential risks to energy security here at the IEA,” he said.

The chief energy economist noted that over the past 10 years or so, global oil demand grew by slightly more than 5 million barrels a day.

“And almost all of that was due to increases in China, road transport and petrochemicals. But that picture is changing, as Dr. Birol has elaborated. And why is that? And it's because China, so long the engine of oil demand growth, is switching to electricity for mobility and also switching to LNG for trucks. So global EV sales this year are set to be around 17 million, and more than 10 million of those are in China. The future starts to look very different from the past. Over the period to 2035, under today's policy settings, demand in other countries steps up,” added Gould.

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