For the First Time, Emerging Markets Are Deploying More Renewables Than Developed Nations

on January 3, 2017

energy storage greentech mediaClimatescope, a new report from BNEF, was released last week, and while many news outlets highlighted the finding that solar is now cheaper than wind, the report contains numbers that signal another major shift in renewable energy.

The report focuses on “clean energy market conditions and opportunities in 58 emerging nations in South America, Africa, the Mideast, and Asia” and contrasts the progress of these poorer nations against the achievements of the OECD countries — the wealthier nations of the world that are members of the Organization for Economic Co-Operation and Development.

And for the first time, the developing nations are winning.

The center of the clean energy universe has shifted from north to south

The 58 emerging-market economies aggregated in the Climatescope report set a record for clean energy deployed in 2015 with 70 gigawatts built, compared to the 59 gigawatts of clean power deployed in the 35 wealthier OECD countries. Cumulatively, the developing nations have won $154.1 billion in cleantech investment and added more clean energy capacity, with faster growth rates than the OECD nations using both those metrics. 

According to the report, 80 percent of the developing nations studied now have national clean energy targets, while three in four have set CO2 emissions reduction goals.

China played a big part in this, but “less-developed nations also played a role.”

There is a downside to record rates of renewables being added to existing grids, and that’s integration challenges. The report notes that some nations have built wind or solar projects despite not having the “associated transmission to deliver power” along with “grid operators [prioritizing] delivery” of power from fossil-fuel plants over those from renewable sources.

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GreenTech MediaFor the First Time, Emerging Markets Are Deploying More Renewables Than Developed Nations