Global PV Supply Chains: Costs and Energy Savings, GHG Emission Reductions

Abstract

In the battle against climate change, accelerating clean energy development is crucial. A global supply chain and cooperation in renewable energy technologies are vital for success. However, the increasing trend towards domestic protectionism in the clean energy sector may result in significant cost increases and hinder efforts to tackle climate change. Our study examined the cost savings, energy savings, and greenhouse gas emissions reduction achieved through a globalised solar PV module supply chain compared to a hypothetical scenario where domestic manufacturers supplied an increasing proportion of installed capacities over ten years from 2004 to 2021. We focused on five representative countries: China, the United States, Germany, Japan, and India. Our analysis revealed substantial cumulative savings in these countries, with cost savings totalling US$181 billion (165-179 billion), energy savings reaching 2.26 EJ-eq (1.99-2.56 EJ-eq), and greenhouse gas emissions avoidance amounting to 105 Mt CO2-eq (73-145 Mt CO2-eq). Future projections from 2022 to 2050 under two IEA scenarios indicate continued savings. This analysis highlights a globalised supply chain's significant cost, energy, and emissions benefits. Coordinated policy reforms are needed to facilitate clean energy trade and technology transfer to achieve global environmental goals.