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Title page

Contents

Acknowledgements 4

Executive summary 8

1. Introduction 10

Scope of this analysis 11

2. The international supply chain 13

Capital goods used for renewable energy 13

Critical raw materials for renewable energy technologies 17

3. Technological leadership in renewable energy 25

A recent decline in patenting activity for most renewable technologies 26

At the country level, technology leadership and export performance are linked 29

Who innovates in renewable energy? 31

Innovation to develop alternatives to and improve recovery and recycling of critical raw materials 35

M&As have increased in the renewable energy ecosystem and are mainly focused on solar and smart grid 37

4. Skills demand for the development and the deployment of renewable energy 39

Data and methodology 40

The share of online vacancies linked to renewable technologies remains modest 41

Renewable energy jobs span a large number of sectors, reflecting the complexity of the value chain 43

Engineering and managerial professions are the most sought-after in the renewable energy ecosystem 45

Main distinct skill bundles: Business acumen, technical expertise and sales 46

5. Policies for the renewable energy ecosystem 50

Indirect support to renewable energy production has increased in recent years 50

Support to businesses in the renewable energy ecosystem mainly focuses on electricity production 52

Support to renewable energy has also been an important part of COVID recovery packages 54

Countries are increasingly supporting new renewable energy technologies through R&D and demonstration schemes 55

Endnotes 57

References 60

Annex A. Setting the scene: Scoping the renewable energy ecosystem and its value chain 66

Annex B. Technological leadership in renewable energy 75

Annex C. Skills demand for the development and the deployment of renewable energy 83

Annex D. Policies for the renewable energy ecosystem 94

Figures

Figure 1.1. Scope of this paper 12

Figure 2.1. Exports of capital goods used in renewable technologies, 2012 and 2021 15

Figure 2.2. Concentration in the global market 16

Figure 2.3. Number of trade dependencies for OECD Member countries, by product 17

Figure 2.4. Export value of raw materials used in solar photovoltaics and wind power 19

Figure 2.5. Export concentration of critical raw materials 20

Figure 2.6. The most concentrated critical raw materials (weighted by their import contribution) for wind power and solar photovoltaics differ across importing... 21

Figure 2.7. The most concentrated critical raw materials for wind power and solar PV tend to have less substitutes 22

Figure 3.1. Patents in technologies related to renewable energy 26

Figure 3.2. Renewable energy technologies developed by economies, 2007-11 and 2017-21 27

Figure 3.3. Revealed technology advantage (RTA) of economies in renewable energy, 2007-11 and 2017-21 28

Figure 3.4. Technology leadership correlates with a better export performance 10 years later 30

Figure 3.5. Renewable energy patents developed by public research organisations, 2017-21 31

Figure 3.6. Links between renewable energy technologies, public research organisations and science, 2010-21 32

Figure 3.7. Renewable energy technologies developed by industries, 2017-21 33

Figure 3.8. Age of companies developing renewable energy technologies, 2017-21 34

Figure 3.9. Patents in renewable energy technologies owned by young firms 34

Figure 3.10. Concentration of patents in renewable energy fields, 2017-21 35

Figure 3.11. Patents in recycling or substitution of critical raw materials, 2017-21 36

Figure 3.12. Value of deals involving at least one firm from the renewable energy sector, by year and by type of deal partners 37

Figure 3.13. Distribution of firms by main patent technology, 2017-21 38

Figure 4.1. Technology contributions to renewable energy vacancies 42

Figure 4.2. Sectoral distribution of renewable energy vacancies, 2022 44

Figure 4.3. Top five over-demanded occupations in the renewable energy ecosystem 45

Figure 4.4. Over-demanded skills in renewable energy vacancies 47

Figure 4.5. Skill network, United States 48

Figure 4.6. Skill network, France 49

Figure 5.1. IPAC countries have increased their carbon pricing in the last decade, mainly driven by European countries 51

Figure 5.2. Regulation measures such as bans on the construction of new coal power plants have importantly increased in recent years 51

Figure 5.3. Direct support to businesses linked to renewable energy mainly focuses on energy production 53

Figure 5.4. Support to renewable energy represents the majority of green industrial policies 53

Figure 5.5. Support to renewable energy has also been a crucial part of COVID recovery packages 54

Figure 5.6. Countries are increasing their R&D and demonstration support towards the ecosystem driven by new technologies such as green hydrogen and... 56

Figure 5.7. Public RD&D vs deployment support in renewable energy, 2018 (bn USD) 56

Boxes

Box.2.1. The EU Critical Raw Materials Act and supply chain resilience 23

Annex Tables

Table A A.1. List of goods used for the production of the different renewable technologies 66

Table A A.2. Export value of raw materials used in solar photovoltaics and wind power 70

Table A A.3. Critical raw materials for renewable energy technologies 72

Table A B.1. Search strategies for patents in technologies related to renewable energy 76

Table A B.2. Search strategies for patents for recycling or substitution of critical raw materials: semiconductors and rare earths 81

Table A B.3. Search strategies for patents for recycling or substitution of critical raw materials: metals, noble materials, batteries 82

Table A C.1. English keyword list and associated technology group 83

Annex Figures

Figure A A.1. Revealed comparative advantage for wind power and solar PV associated goods 67

Figure A A.2. Revealed comparative advantage for solar thermal and hydropower associated goods 67

Figure A A.3. Number of trade dependencies across countries and goods (2012-2014) 68

Figure A A.4. Number of trade dependencies across countries and goods (2019-2021) 68

Figure A A.5. Extra-EU exports for photovoltaic semiconductor devices, photovoltaic cells, and LEDs 69

Figure A A.6. Bilateral trade dependencies across countries 72

Figure A B.1. Revealed technology advantage and relative comparative advantage, by technology 77

Figure A B.2. Age of companies developing renewable energy technologies, 2017-21 77

Figure A B.3. Specialisation in recycling or substitute of critical raw materials, 2017-21 78

Figure A B.4. Distribution of target firms by main patent technology and by acquiring economy, 2017-2021 78

Figure A B.5. Share of economies in renewable energy technologies, 2007-11 and 2017-21 79

Figure A C.1. Comparison of target texts and lemmatisation approaches 85

Figure A C.2. Sectoral distribution of renewable energy vacancies in European countries, 2022 88

Figure A C.3. Top ten skills by technology group 90

Figure A C.4. Correlation of top 20 skills and their pairs in renewable energy vacancies in European countries, 2022 91

Figure A D.1. Support mainly channels through grants 95

Annex Boxes

Box A B.1. Patents as a measure of innovation in renewable energy 75

Box A D.1. The EU Net-Zero Industry Act 94