Key trends within the solar- and wind-energy global value chains

This chapter provides an overview of the solar-PV and wind-energy global value chains, discussing each in turn. It describes how international trade and foreign direct investment in greenfield projects have contributed to the emergence of global value chains in both solar-PV and wind-energy sectors. For both sectors, the report discusses trends in production, trade volumes, industry concentration, as well as domestic and international investment. Similarities and differences between the two sectors are noted. Particular attention is given to the increasing reliance of domestic production on imported intermediate inputs. The chapter highlights the growing importance of downstream activities (project development, installation, and maintenance) compared to midstream activities (manufacturing) in terms of value added, employment and investment, and discusses some of the policy implications.