Clean energy transitions continue uneven progress despite setbacks – IEA
Omeiza Bilal
Despite concerns about setbacks in the global deployment of clean energy technologies, there is still growth, the International Energy Agency (IEA) has said
According to a new update from the IEA, progress has been uneven across different regions and technologies, highlighting the need for more supportive policies to enable countries to navigate the transition.
The report showed that solar PV continues to lead clean technology deployment, with new additions up 36 per cent from the first half of 2023, and 80 per cent in the United States alone.
“Electric vehicle sales increased by 25 per cent while new wind power capacity kept pace with the record additions seen in 2023. However, heat pump sales saw a notable decline of 10 per cent at the global level, driven by lower sales in Europe, while those in China, the United States and Japan remained strong.
“Around 7 million electric cars were sold worldwide in the first half of 2024.
“In China, electric vehicles made up nearly 45% of China’s total car sales in the first half of the year, and the number crossed 50% in more recent months. There are also signs that clean energy transitions are accelerating in other emerging markets and developing economies. Sales of electric vehicles in these markets doubled compared with the same period in 2023. Additions of solar PV capacity in India increased by 90 per cent the first six months of this year, and by more than 30 per cent in China over the same period,” the report notes.
By contrast, some clean energy technologies hit hurdles in some European countries in the first half of the year,
According to the Agency, heat pump sales in Europe fell by almost 50 per cent and electric car sales grew by only 3 per cent compared with the same period in 2023. A significant drop in Germany meant that overall EV sales growth in Europe was flat despite strong growth in the United Kingdom, Belgium and the Netherlands.
Furthermore, after an uptick in the post-pandemic period, clean energy equipment costs have resumed their downward trend.
“The rapid rollout of solar PV in China in the first half of 2024 was helped by a fall in module prices, which have more than halved in the last year. This has also had positive knock-on effects for household and commercial customers using distributed solar systems, allowing them to save on their electricity bills. While falling clean energy equipment prices provide opportunities for faster transitions, supportive policies are still needed to provide the enabling conditions such as investments in electricity grids or EV charging networks.
“Other factors pushing clean energy technology prices down are ample manufacturing capacity and weaker-than-expected demand, which have dented the profit margins of manufacturers in some sectors, notably in the solar PV sector in China. However, other sectors of China’s technology manufacturing have shown greater resilience, specifically in batteries where domestic manufacturers saw profit margins strengthen in the first half of 2024,” the report added.
