Global South’s Push: Revolutionizing Renewable Energy Manufacturing

In the quest for sustainable energy solutions, Global South nations are seizing the opportunity to revolutionize renewable energy manufacturing. This paradigm shift not only addresses burgeoning energy demands but also paves the way for economic growth, job creation, and reduced import reliance.

The inaugural webinar of the Africa Renewable Energy Manufacturing Initiative (Africa REMI) South-South Virtual Policy Dialogue Series convened experts from ASEAN, India, Nigeria, South Africa, Kenya, and Brazil to share experiences and insights into industrial policy design and implementation for scaling renewable energy manufacturing. Here are some key takeaways from the webinar.

1. Holistic Industrial Policies

A holistic approach to industrial policies is paramount, emphasized the experts. Visibility into national and regional demand for renewable energy products is critical for strengthening the case for local manufacturing.

Governments can stimulate domestic demand through deployment targets and supportive policies. Local content requirements, especially in cases involving public financing, play a vital role but must be time-bound and rigorously enforced.

2. Success Stories and Regional Opportunities

Brazil’s wind manufacturing industry serves as a testament to the power of strategic policies. A combination of public procurement, local financing, and national content policies propelled Brazil into a competitive position in the wind energy sector.

Regional demand can be unlocked through investments in physical infrastructure and the utilization of instruments like special economic zones and trade agreements. The ASEAN region, with its extensive experience in building domestic renewable energy supply chains, provides valuable insights into regional collaboration and supply chain development.

3. Supply-Side Incentives and Support

While demand is crucial, building local manufacturing capabilities requires robust supply-side incentives. India’s journey from a major solar module importer to a manufacturing powerhouse underscores the importance of supply-side interventions.

The Production Linked Incentive Scheme launched in 2021 aims to bolster India’s solar manufacturing capacity significantly, reducing import dependency and fostering domestic industry growth.

4. Policy Frameworks and Implementation

An effective industrial policy framework necessitates a collaborative, long-term approach based on extensive consultations and data. The South African Renewable Energy Master Plan exemplifies a comprehensive strategy for the sector, emphasizing co-creation and co-ownership.

Early-stage support, reduced input costs, and proactive measures to strengthen the manufacturing workforce are essential components of successful policy implementation.

5. Skills Development and South-South Cooperation

Addressing skills gaps and fostering collaboration across technical and vocational training institutions are crucial for nurturing a skilled manufacturing workforce.

South-South cooperation can play a pivotal role in bridging manufacturing ecosystem gaps, including policy design, investments, technology access, and skills building.

Knowledge exchange and learning from countries further along in their renewable energy journey are essential for driving sectoral growth and just transition efforts across the Global South.

The insights shared during the webinar underscore the transformative potential of renewable energy manufacturing in the Global South. By leveraging innovative industrial policies, fostering regional cooperation, and investing in skills development, these nations are poised to lead the charge towards a sustainable energy future.