Energy Technology Perspectives 2024

Energy Technology Perspectives 2024

Introduction

In July 2021, the International Energy Agency (IEA) declared the emergence of a new global energy economy, characterized by clean and modern technologies such as solar, wind, electric cars, and others. This report focuses on the implications of this shift, particularly in terms of energy security, economic development, and greenhouse gas emissions reduction.

Key Points:

1. Emergence of a New Energy Economy

   • The IEA has observed a significant shift towards clean and modern energy technologies.
   • This transition is driven by data and analysis covering all fuels and technologies across the global energy system.

2. Rising Importance of Manufacturing and Trade

   • Access to clean technology components and inputs is becoming increasingly critical.
   • Countries are enacting bold industrial strategies to secure clean energy supply chains and gain economic advantages.

3. Focus of the Report

   • The report examines the manufacturing and trade dynamics of six key clean energy technologies: solar PV, wind, electric vehicles, batteries, electrolysers, and heat pumps.
   • It also explores the key components and industries supporting these technologies, such as steel, aluminum, and ammonia.

4. Benefits and Opportunities

   • The growth of clean energy technologies can lead to new manufacturing industries, job creation, lower energy costs, improved energy security, cleaner air, and reduced emissions.
   • Clean energy technologies may reduce reliance on fossil fuels, leading to increased resilience against supply disruptions and market volatility.

5. Tensions and Trade-offs

   • Intense competition among major economies to gain advantage in the new energy economy is evident.
   • Potential risks include:
     • Increased trade barriers making clean energy transitions less cost-effective.
     • Inefficient government subsidies.
     • Marginalization of smaller and less developed economies.

6. Global Perspective and Cooperation

   • The report highlights the need for a global perspective and cooperation to ensure widespread prosperity and achieve international energy and climate goals.
   • The IEA is committed to providing support and fostering collaboration among countries.

7. Contributors

   • The report was prepared by the Energy Technology Policy (ETP) Division of the Directorate of Sustainability, Technology, and Outlooks (STO).
   • Key contributors include Timur Gül (IEA Chief Energy Technology Officer), Araceli Fernández, Uwe Remme, and others from various IEA divisions.

Conclusion

This report provides policymakers with a detailed and quantified basis to inform their deliberations regarding the future of the energy sector. By examining the manufacturing and trade dynamics of key clean energy technologies, it aims to support the transition to a more secure and sustainable energy system.