Diverse supply chains key to unlocking the power of renewables

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🗞️ Driving the news: The transition to renewable energy hinges on diversifying the supply chains for materials and components. Currently, the market is dominated by China, which significantly undercuts prices, making it difficult for other suppliers to compete.

🔭 The context: China's dominance in the production of solar modules, cells, wafers, electrolysers, and battery components is expanding, leading to over-capacities and stifling competition
• However, the US, India, and the EU are making strides in building their manufacturing capacities through various incentives

🌍 Why it matters for the planet: Diversifying supply chains is crucial for a sustainable and resilient renewable energy sector
• Over-dependence on single sources poses risks to the global energy transition and efforts to combat climate change

⏭️ What's next: Strategies include leveraging domestic markets, coordinated trade policies, end-to-end ecosystem development, and developing expertise in emerging supply chains
• These efforts aim to reduce over-dependence on specific countries and foster global competitiveness

💬 One quote: "The challenge of over-dependence extends beyond current technologies. Proactive steps are needed to avoid dominance in emerging sectors like green steel, carbon capture, green building materials and sustainable fuels," (Sumant Sinha, CEO of ReNe)

📈 One stat: Companies based in China produce eight out of ten solar modules used worldwide, supplying these at a cost 20 to 40% lower than their competitors

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