Leaders from more than a dozen African countries will gather in Germany for the G20 Africa Compact meeting to promote private investment in Africa. The summit, chaired by German Chancellor Olaf Scholz, aims to coordinate the development agenda and discuss investment opportunities. The event will include bilateral talks with African countries and a Germany-Africa Investment Summit. Germany aims to diversify supply chains, secure a skilled workforce, reduce illegal immigration and achieve a green transition.
India is expected to overtake Southeast Asia and become the second-largest producer of solar modules by 2025, mainly catering to demand in the United States. However, high production costs pose challenges due to the 25% tariff on imported solar cells. Under the Inflation Reduction Act, the United States is developing its own photovoltaic manufacturing capabilities but will still rely on imports. China’s leadership in N-type battery technology is expected to impact the market, accounting for 95% of global expansion. Vertically integrated manufacturers may still find growth opportunities.
The European Investment Fund (EIF) invested 125 million euros in the "Green Energy Solutions Fund" operated by Sustainable Development Capital (SDCL) to establish power projects in places such as hospitals and data centers to reduce energy waste. The investment helped the fund reach its fundraising target of 650 million euros ($707 million) last month. The EIF aims to advance the EU’s policy priorities to combat climate change and deploys 66% of its capital across the EU’s 27 member states.
Asia, driven primarily by India, China and Vietnam, is the global leader in wind and solar development and will account for 52.5% of global capacity by 2022. Sales of electric motorcycles and scooters in the region grew by 3,000% between 2015 and 2022. Despite committing to long-term net-zero emissions targets, India and China still have large coal fleets. A new study highlights the Asian region as the global leader in wind and solar power development, with the fastest growth in wind and solar power generation at 35% per year. Asia's funding of renewable energy will total $532 billion by 2022, accounting for 65% of global spending on renewable energy. The Asia-Pacific region faces climate challenges such as rising sea levels, extreme weather events, and threats to biodiversity and water resources.
Europe's electricity grid is becoming a major bottleneck in absorbing Europe's rapidly expanding renewable energy, the electricity lobby says. The grid is designed to handle capacity in excess of demand, creating a slack space in the system that allows for the growth of clean energy production. This has resulted in a slew of renewable energy projects waiting to be connected to the grid, with Spain and Italy each having more than 150 GW of wind and solar capacity waiting to be connected to the grid. The European Commission is drawing up plans to push for more grid investment, while companies are restructuring networks to send power in different directions.
The International Energy Agency's World Energy Employment Report shows that wages in the energy industry are still higher than in other industries, with mature industries such as oil, gas and nuclear power offering more competitive wages. This is due to a higher proportion of skilled labor, with nuclear, oil and gas jobs typically requiring a bachelor's degree. However, this wage gap creates challenges for workers switching from fossil fuels to renewable energy industries. The IEA's 2023 Energy Employment Survey showed that about 60% of companies raised wages last year to attract workers.