Visualizing Where Clean Energy Technologies Are Manufactured

When looking at where clean energy technologies and their components are made, one thing is very clear: China dominates the industry.

The country, along with the rest of the Asia Pacific region, accounts for approximately 75% of global manufacturing capacity across seven clean energy technologies.

Based on the IEA’s 2023 Energy Technology Perspectives report, the visualization above breaks down global manufacturing capacity by region for mass-manufactured clean energy technologies, including onshore and offshore wind, solar photovoltaic (PV) systems, electric vehicles (EVs), fuel cell trucks, heat pumps, and electrolyzers.

The State of Global Manufacturing Capacity

Manufacturing capacity refers to the maximum amount of goods or products a facility can produce within a specific period. It is determined by several factors, including:

• The size of the manufacturing facility
• The number of machines or production lines available
• The skill level of the workforce
• The availability of raw materials

According to the IEA, the global manufacturing capacity for clean energy technologies may periodically exceed short-term production needs. Currently this is true especially for EV batteries, fuel cell trucks, and electrolyzers. For example, while only 900 fuel cell trucks were sold globally in 2021, the aggregate self-reported capacity by manufacturers was 14,000 trucks.

With that said, there still needs to be a significant increase in manufacturing capacity in the coming decades if demand aligns with the IEA’s 2050 net-zero emissions scenario. Such developments require investments in new equipment and technology, developing the clean energy workforce, access to raw and refined materials, and optimizing production processes to improve efficiency.

What Gives China the Advantage?

Of the above clean energy technologies and their components, China averages 65% of global manufacturing capacity. For certain components, like solar PV wafers, this percentage is as high as 96%.

Here’s a breakdown of China’s manufacturing capacity per clean energy technology.

So, what gives China this advantage in the clean energy technology sector? According to the IEA report, the answer lies in a combination of factors:

• Low manufacturing costs
• A dominance in clean energy metal processing, namely cobalt, lithium, and rare earth metals
• Sustained policy support and investment

The mixture of these factors has allowed China to capture a significant share of the global market for clean technologies while driving down the cost of clean energy worldwide.

As the market for low-emission solutions expands, China’s dominance in the sector will likely continue in the coming years and have notable implications for the global energy and emission landscape.

Mapped: Asia’s Biggest Sources of Electricity by Country

The International Energy Agency (IEA) predicts that Asia will account for half of the world’s electricity consumption by 2025, with one-third of global electricity being consumed in China.

To explore how this growing electricity demand is currently being met, the above graphic maps out Asia’s main sources of electricity by country, using data from the BP Statistical Review of World Energy and the IEA.

A Coal-Heavy Electricity Mix

Although clean energy has been picking up pace in Asia, coal currently makes up more than half of the continent’s electricity generation.

No Asian countries rely on wind, solar, or nuclear energy as their primary source of electricity, despite the combined share of these sources doubling over the last decade.

The above comparison shows that the slight drops in the continent’s reliance on coal, natural gas, and oil in the last decade have been absorbed by wind, solar, and hydropower. The vast growth in total electricity generated, however, means that a lot more fossil fuels are being burned now (in absolute terms) than at the start of the last decade, despite their shares dropping.

Following coal, natural gas comes in second place as Asia’s most used electricity source, with most of this demand coming from the Middle East and Russia.

Zooming in: China’s Big Electricity Demand

While China accounted for just 5% of global electricity demand in 1990, it is en route to account for 33% by 2025. The country is already the largest electricity producer in the world by far, annually generating nearly double the electricity produced by the second largest electricity producer in the world, the United States.

With such a large demand, the current source of China’s electricity is worthy of consideration, as are its plans for its future electricity mix.

Currently, China is one of the 14 Asian countries that rely on coal as its primary source of electricity. In 2021, the country drew 62% of its electricity from coal, a total of 5,339 TWh of energy. To put that into perspective, this is approximately three times all of the electricity generated in India in the same year.

Following coal, the remainder of China’s electricity mix is as follows.

Despite already growing by 1.5x in the last decade, China’s demand for electricity is still growing. Recent developments in the country’s clean energy infrastructure point to most of this growth being met by renewables.

China does also have ambitious plans in place for its clean energy transition beyond the next few years. These include increasing its solar capacity by 667% between 2025 and 2060, as well as having wind as its primary source of electricity by 2060.

Asia’s Road to Clean Energy

According to the IEA, the world reached a new all-time high in power generation-related emissions in 2022, primarily as a result of the growth in fossil-fuel-generated electricity in the Asia Pacific.

With that said, these emissions are set to plateau by 2025, with a lot of the global growth in renewables and nuclear power being seen in Asia.

Currently, nuclear power is of particular interest in the continent, especially with 2022’s energy crisis highlighting the need for energy independence and security. India, for instance, is set to have an 80% growth in its nuclear electricity generation in the next two years, with Japan, South Korea, and China following suit in increasing their nuclear capacity.

The road ahead also hints at other interesting insights, specifically when it comes to hydropower in Asia. With heatwaves and droughts becoming more and more commonplace as a result of climate change, the continent may be poised to learn some lessons from Europe’s record-low hydropower generation in 2022, diverting its time and resources to other forms of clean energy, like wind and solar.

Whatever the future holds, one thing is clear: with ambitious plans already underway, Asia’s electricity mix may look significantly different within the next few decades.