Is the Global South Leading the Renewable Energy Boom?

Renewable energy generation is growing rapidly in emerging economies.

• Renewable energy in the global south grew at 23% annually, double the rate of rich countries.
• Solar and wind power are booming in Brazil, Mexico, India and Morocco.
• The global south is predicted to surpass rich countries in renewable energy capacity by 2030.

Renewable Energy Surge in Emerging Economies

Renewable energy is experiencing explosive growth in the global south, with solar and wind generation rising at an annual compound rate of 23% in the past five years. This is more than double the rate seen in the richest nations, which grew at 11%. Countries such as Brazil, Mexico, and Morocco have become key players, demonstrating that developing nations are rapidly embracing clean energy technologies.

Why This Growth Matters Globally

The accelerating adoption of renewables in the global south is significant not only for the countries themselves but for the global fight against climate change. With fewer entrenched fossil fuel infrastructures, these nations are leapfrogging to clean energy solutions, offering hope for a greener, more sustainable future. As costs plummet and technology improves, the global south could play a leading role in transitioning to a low-carbon global economy.

Investment and Innovation Driving the Boom

Much of the renewable energy boom in emerging markets is being driven by Chinese investment in solar and battery technologies. The cost of these technologies has halved, making them increasingly accessible. “It’s boom time in the global south,” said Vikram Singh, co-author of the RMI report, highlighting how middle-income countries such as Brazil and India are benefitting from these affordable, scalable solutions.

Ongoing Challenges Despite Progress

Despite this rapid growth, there are still hurdles to overcome. Higher perceived risks in the global south mean that investors demand a premium, and the promised flow of public and private financing from international development banks has yet to materialize. However, experts believe that by 2030, the global south could surpass wealthier countries in renewable capacity, changing the global energy landscape.

Outlook for the Future of Renewables

The future for renewables in the global south looks promising, as these countries are better positioned to transition quickly to clean energy compared to their wealthier counterparts. With fewer legacy systems and a greater openness to new technologies, emerging markets could be at the forefront of the global energy transition, helping the world meet its climate goals while powering their own development.