Key facts
- Global energy transition supply chains are highly concentrated, according to the IEA.
- China leads in manufacturing wind and solar equipment, batteries, and electric cars.
- Southeast Asia is a major destination for Chinese clean energy technology.
- Geopolitics is significantly impacting the energy sector, increasing the importance of energy security.
- EV sales outside China have increased by 60% due to oil and gas price concerns.
The head of the International Energy Agency, Fatih Birol, has warned that the global energy transition relies on supply chains that are dangerously concentrated, particularly with China dominating manufacturing and investment in clean energy technologies. Birol noted that this concentration poses a potential problem, especially for Southeast Asia, which has become a major market for Chinese clean energy products. He also highlighted the significant impact of geopolitics on the energy sector, emphasizing the growing importance of energy security. Despite these concerns, Birol pointed to a silver lining in the increased demand for electric vehicles, with sales outside China showing a substantial rise.