Birol warns of clean energy supply chain concentration — OilPrice

In Singapore, International Energy Agency Executive Director Fatih Birol warned of the high concentration of global supply chains for energy transition technologies. OilPrice reports.

Speaking at Singapore International Energy Week, Birol did not name the countries involved in these supply chains. According to him, such concentration could become a problem, particularly for Southeast Asia.

China’s dominance

As OilPrice notes, China is the leading player in the production, capacity and investment in energy transition technologies. The country produces the most equipment for wind and solar energy, is the world’s largest battery producer, and is also the largest manufacturer and seller of electric vehicles.

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Data from climate publication Ember, cited by the report, show that Southeast Asia has become the main destination for Chinese energy transition technologies and goods. Since the beginning of the year, countries in the region have purchased $20 billion worth of such products.

Electricity demand

Birol said that the world is entering an era of electricity: despite the continued use of oil, natural gas and liquefied natural gas, electricity demand is growing rapidly. He also emphasized the growing impact of geopolitics on the energy sector and the importance of energy security.

The IEA chief added that electric vehicle sales outside China exceeded previous forecasts by 60%. He linked this to shortages of oil and gas caused by the war of the United States and Israel with Iran, and called the trend a sign of changing patterns of global energy consumption.