Policies related to industry typically have not included renewable energy requirements, reflecting the very diverse energy needs of industrial sectors (for heating, electricity, etc.); however, some progress has been made on energy efficiency and energy management. Policies supporting renewable heat often mention industrial uses, and many carbon pricing mechanisms encourage the use of renewables in large industry sectors. Renewable hydrogen also has gained policy attention. Other factors driving industrial policies and regulations related to renewables include the ongoing energy crisis, concerns about energy security, growing net zero commitments by countries and companies, and the emergence of the hydrogen economy. ¹⁷ However, a lack of robust national-level data has hindered the mapping of energy needs in the industry sector and the design of effective policies on renewables.

In 2022, no new jurisdictions adopted regulatory policies for renewables in industry, and only one country, Poland, announced plans for a new renewable energy mandate for industry, for the mining sector. ¹⁸ In addition, the EU's REPowerEU plan (yet to be approved as of the time of writing) set a target of 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of hydrogen imports by 2030 for heavy industries, and also includes a target for renewable energy use in industry. ¹⁹ This brings the total number of countries with road maps that include hydrogen in the industry sector to 10, five of which (Australia, Brazil, South Africa, Spain and Sweden) are for renewable hydrogen. ²⁰

The REPowerEU plan also mentions the electrification of industrial processes and the use of alternative bio-based or renewable inputs, along with energy efficiency, waste valorisation and circular use of materials. ²¹ In addition, it aims to expand the EU's manufacturing capacity for clean energy technology, including through industrial alliances such as the Solar industrial Alliance to push the solar panel manufacturing sector, and the Biomethane Industrial Partnership. ²²

Financial incentives remain the most common policy support for promoting the use renewables in industry, with 12 countries having such policies by the end of 2022. Overall, no new policies for renewables in industry have been announced since 2019. As of the end of 2022, a total of 19 countries had renewable energy mandates and/or fiscal/financial policies for industry; only 9 countries had renewable energy mandates that enforce the installation of renewables, and 2 countries (Spain and Türkiye) had both regulatory and fiscal/financial incentives. ²³

The most common financing framework for renewables in the industry sector is direct contracting through power purchase agreements (PPAs) or environmental attribute certificates. However, national utilities have been reluctant to support industry's transition to independent electricity sources, and in countries where the grid is unreliable, fossil fuel back-up systems remain the norm. ²⁴ The lack of enabling policies for renewable energy captive markets has pushed the private sector to be innovative with business models, such as lease-to-own solar parks. ²⁵

The momentum towards net zero carbon emissions continues to drive policies. As of November 2022, a total of 140 countries, representing 90% of global emissions, had committed to net zero pathways; this was up from 130 countries representing 70% of emissions in May 2021. ²⁶ As governments and industries look to renewables as a potential solution for mitigating emissions, countries have begun bridging the silos between renewable energy policies and industry policies.

A key US policy advancement in the industry sector in 2022 was the adoption of the Inflation Reduction Act, which allots USD 370 billion (out of a total USD 433 billion) to energy and climate change, putting the United States on track to reach its 2050 emission reduction target. ²⁷ The law highlights domestic manufacturing of both renewable energy technologies and electric vehicles and infrastructure. ²⁸ For energy-intensive industries such as steel and cement, two aspects of the law are noteworthy: 1) clean electricity tax credits are technology-neutral and include energy storage and green hydrogen starting in 2025, and 2) the credits will be in place for at least a decade, giving industrial users ample time and confidence to develop renewable supply options for their own energy needs. ²⁹

South Africa's Just Energy Transition Investment Plan 2023-2027 mentions decarbonising the industry sector through increased investment in renewable power. ³⁰ It also highlights renewable hydrogen as a way to decarbonise hard-to-abate sectors (such as transport, petrochemicals, iron and steel, and cement) as well as the automotive industry and Special Development Zones (industrial parks). ³¹

During the United Nations climate talks in Egypt in November 2022, several policy announcements supported the uptake of renewables in industry; for example, India introduced a mandatory green hydrogen purchase obligation for industrial users. ³² The previous month, at the Group of Twenty (G20) meetings in Indonesia, the International Renewable Energy Agency and industry leaders established the Alliance for Industry Decarbonization to encourage wider industry adoption of renewables. ³³

In the area of renewable hydrogen, Egypt announced a new National Hydrogen Strategy in 2022 that includes building the infrastructure to support industrial users of both conventional and renewable hydrogen. ³⁴ Also during the year, South Africa published its Hydrogen Society Roadmap, which focuses on renewable hydrogen, including large projects aimed at industrial users, such as the Boegoebaai Green Hydrogen development in the Northern Cape. ³⁵ However, most industry leaders globally continue to consider both fossil-based and renewable hydrogen in the push towards net zero emissions. ³⁶

So far, only a few policies have focused on the use of land for industrial renewable energy projects. This includes, for example, developing industrial clusters where diverse industries share energy generation processes; industrial parks or special economic zones; and industry community renewable energy. ³⁷ Chile launched a plan in 2022 to facilitate renewable hydrogen concessions on public lands to meet the needs of the mining industry. ³⁸