The world is shifting toward renewable energy, and developing countries are moving faster than ever. With rising energy demands, falling technology costs, and strong policy support, many emerging economies are now leading the global transition to clean energy. But just how quickly is adoption happening?
1. Global renewable energy capacity in developing countries grew by 9.8% in 2022
Developing nations are adding renewable energy at a rapid pace. A 9.8% growth rate in one year shows that clean energy adoption is no longer a slow process—it is accelerating. This increase is driven by lower costs for solar and wind, as well as strong government incentives.
For investors and policymakers, this growth rate is a strong signal. Investing in solar farms, wind power, and hydro projects is becoming more profitable, and countries that embrace renewables early will benefit the most. If this trend continues, developing nations will play a major role in shaping the future of global energy markets.
2. Over 70% of new power generation capacity added in developing countries in 2022 was from renewable sources
In many developing nations, new power plants are now primarily renewable. This is a major shift from the past, when coal and gas dominated new energy projects. Today, solar and wind are often the cheapest option, and governments are prioritizing clean energy over fossil fuels.
For businesses, this means opportunities. Companies that provide solar panels, wind turbines, or battery storage solutions will see growing demand. The shift also means that industries relying on clean energy will benefit from lower electricity costs in the long run.
3. Solar PV capacity in developing nations increased by 18% annually over the past five years
Solar power is leading the way in renewable energy expansion. Developing countries are installing solar panels at an incredible rate, with an average annual growth of 18% over five years. This rapid increase is due to falling costs and improved efficiency in solar technology.
Homeowners, businesses, and industries in these nations are recognizing the benefits of solar energy. From rural communities gaining access to electricity to factories reducing costs, solar is proving to be a game-changer. Governments should continue offering incentives to encourage even faster adoption.
4. Wind energy capacity in developing nations grew by 12% annually from 2018 to 2023
While solar power often gets the most attention, wind energy is also expanding rapidly. With a 12% annual growth rate, wind farms are becoming a crucial part of the energy mix in many emerging markets.
Wind energy is particularly useful in regions with strong wind resources, such as coastal areas and open plains. Countries like Brazil, South Africa, and India are investing heavily in wind farms, providing reliable and low-cost electricity.
For investors, this presents strong opportunities in wind turbine manufacturing, installation, and maintenance.
5. Hydropower remains the largest renewable energy source in developing countries, making up 50% of total renewable energy capacity
Despite the rapid growth of solar and wind, hydropower remains the largest source of renewable electricity in developing nations. Many countries rely on large hydroelectric dams to supply stable power.
Hydropower offers benefits like reliability and storage capacity. However, environmental concerns and displacement issues need to be managed carefully. Smaller-scale hydro projects, known as run-of-river systems, are gaining popularity as they reduce environmental impact.
6. The share of renewable energy in electricity generation in developing countries rose from 23% in 2015 to 33% in 2023
In just eight years, the proportion of electricity from renewables in developing nations has jumped by 10 percentage points. This rapid increase shows that policies and investments are working.
To continue this momentum, countries must focus on improving grid infrastructure, integrating energy storage, and expanding off-grid solutions for remote areas.
7. China accounted for 45% of all renewable energy investment in developing countries in 2022
China is the biggest investor in renewable energy in emerging markets. Through its Belt and Road Initiative, the country is financing clean energy projects across Asia, Africa, and Latin America.
This investment is a double-edged sword. While it brings much-needed funding, there are concerns about debt dependency and project ownership. Developing nations must negotiate fair terms to ensure long-term benefits.
8. India doubled its solar capacity between 2018 and 2023, reaching 70 GW
India has emerged as a global leader in solar energy. With strong government support, declining solar costs, and massive demand, the country has doubled its solar capacity in just five years.
This rapid expansion provides a model for other developing nations. By creating policies that encourage private investment and streamlining approval processes, other countries can achieve similar growth.
9. Brazil’s renewable energy share in electricity generation exceeded 80% in 2023
Brazil is a renewable energy powerhouse, with over 80% of its electricity coming from clean sources. Hydropower is the main contributor, but wind and solar are also growing fast.
Other nations can learn from Brazil’s long-term energy policies, which focus on a diversified renewable mix and strong grid infrastructure.
10. Africa’s installed solar PV capacity increased by 24% in 2022 alone
Africa is experiencing a solar boom. With high sunlight exposure and growing energy demand, solar PV installations are rising quickly.
Many projects focus on off-grid solar solutions, providing electricity to rural communities for the first time. Continued investment in solar will help bridge Africa’s energy gap.
11. Sub-Saharan Africa’s renewable energy investment grew by 25% in 2022 but remains far below global averages
While investment is growing, Sub-Saharan Africa still lags behind in renewable energy funding. Limited financial resources and high infrastructure costs remain challenges.
Governments must work with international investors to secure long-term financing. Reducing bureaucratic hurdles will also help attract more investment.
12. Vietnam’s solar power capacity jumped from 134 MW in 2018 to 16.5 GW in 2022
Vietnam’s solar market has exploded. Favorable policies and strong demand have turned the country into a clean energy leader.
This transformation shows that with the right incentives, even small nations can rapidly scale up renewable energy. Other countries should take note and implement similar policies.
13. Indonesia aims to achieve 23% renewable energy share in its power mix by 2025, but currently stands at 14%
Indonesia has ambitious goals but is struggling to meet them. Challenges include reliance on coal, slow regulatory approvals, and financing difficulties.
To reach its target, Indonesia must increase investments in solar, wind, and geothermal power. Cutting red tape and offering tax incentives will help accelerate progress.
14. Latin America’s wind energy capacity grew by 13% annually over the past five years
Latin America has been steadily increasing its wind energy capacity, with an annual growth rate of 13%. Countries such as Brazil, Argentina, and Mexico have taken the lead in developing large-scale wind farms.
This growth is fueled by strong wind resources, government policies, and declining technology costs. The region’s geography makes wind an ideal energy source, particularly along coastal areas and open plains.
For continued success, Latin American nations need to focus on improving grid connections and ensuring stable policies to attract long-term investment. Offshore wind energy, though still in its infancy, could be the next big opportunity for expansion in the region.
15. Bangladesh’s off-grid solar program has installed over 6 million solar home systems since 2003
Bangladesh is a prime example of how decentralized solar solutions can transform a country’s energy landscape. Over 6 million solar home systems have been installed in rural areas, providing electricity to millions of people who previously had no access.
This success is largely due to microfinance programs, which allow households to purchase solar systems with small, manageable payments. Other developing nations with large rural populations can replicate this model to expand energy access.
For further expansion, Bangladesh needs to focus on battery storage solutions and mini-grid systems, which would allow entire communities to share solar-generated power more efficiently.
16. Developing Asia accounted for 60% of all global renewable energy capacity additions in 2022
Asia is leading the global renewable energy transition, with developing countries in the region contributing to 60% of all new capacity added in 2022.
China and India are the main drivers of this growth, but Southeast Asian nations like Vietnam, Thailand, and the Philippines are also making significant progress. The region’s rapid economic growth and rising energy demand make renewables an essential part of future energy planning.
Governments in Asia must ensure that policies remain stable and that grid infrastructure is modernized to support more renewable energy. Long-term financing and regional collaboration can further accelerate growth.
17. Geothermal energy in developing countries saw an annual growth rate of 4.5% between 2015 and 2023
Geothermal energy remains a small but steady part of the renewable energy mix in many developing nations. With an annual growth rate of 4.5%, countries with strong geothermal potential—such as Indonesia, the Philippines, and Kenya—are making progress.
Unlike solar and wind, geothermal provides a constant and reliable energy supply, making it a valuable resource. However, high upfront costs and lengthy project development timelines have slowed growth.
Governments can encourage more geothermal development by offering tax incentives, reducing permitting barriers, and partnering with international investors to share risks.
18. Middle East and North Africa (MENA) region’s renewable energy capacity grew by 10.3% in 2022
The MENA region, traditionally known for oil and gas, is now making significant strides in renewable energy. A 10.3% growth rate in 2022 shows that countries such as the UAE, Saudi Arabia, and Morocco are investing heavily in solar and wind power.
The region’s abundant sunshine makes it an ideal location for solar energy projects. The falling cost of solar technology and ambitious government targets are driving this growth.
To continue expanding, MENA countries should focus on integrating energy storage solutions, as solar power production is highest during the day but demand often peaks in the evening.
19. Kenya generates over 90% of its electricity from renewables, mainly geothermal and hydro
Kenya has established itself as one of the greenest energy producers in the world. Over 90% of the country’s electricity comes from renewable sources, with geothermal and hydropower leading the way.
This success has been driven by strong government policies, private sector investment, and a commitment to long-term sustainability. Other African nations can learn from Kenya’s approach by prioritizing investment in domestic renewable resources.
For future growth, Kenya should focus on expanding its transmission networks and improving energy storage to ensure stability and reliability.
20. South Africa’s solar and wind capacity reached 13 GW in 2023, up from 2 GW in 2015
South Africa has made remarkable progress in scaling up its renewable energy sector. With solar and wind capacity jumping from 2 GW to 13 GW in just eight years, the country is proving that renewables can be a major part of its energy mix.
This growth has been fueled by government-led renewable energy procurement programs and increasing private sector participation. However, challenges such as grid instability and reliance on coal remain obstacles.
To sustain momentum, South Africa must continue investing in grid modernization, battery storage, and decentralized energy solutions to ensure energy security and reliability.
21. Pakistan increased its solar and wind capacity from 400 MW in 2016 to 3 GW in 2023
Pakistan has been making steady progress in renewable energy adoption. From just 400 MW in 2016, the country has now reached 3 GW of solar and wind capacity.
Government incentives, lower technology costs, and growing private sector interest have contributed to this growth. However, challenges like financing difficulties and regulatory hurdles continue to slow down larger-scale investments.
To accelerate adoption, Pakistan should introduce clearer policies, streamline approvals, and develop better financing mechanisms for solar and wind projects.
22. Mexico’s renewable energy share in electricity generation reached 32% in 2023, up from 19% in 2015
Mexico has significantly increased its reliance on renewable energy, growing from 19% to 32% in just eight years. This shift has been driven by wind and solar projects, particularly in regions with strong natural resources.
However, recent policy changes have created uncertainty in the renewable energy sector. To maintain progress, Mexico must ensure long-term policy stability, attract private investment, and continue expanding transmission networks to integrate more renewables into the grid.
23. Off-grid renewable energy solutions provided electricity to over 200 million people in developing nations by 2023
Off-grid solutions have been a game-changer for many developing countries, bringing electricity to over 200 million people. Solar home systems, mini-grids, and hybrid solutions are helping communities that previously had no access to electricity.
Governments should continue supporting these initiatives through financing programs, incentives, and partnerships with private companies. Off-grid solutions not only improve living conditions but also create jobs and boost local economies.
24. Hydropower expansion in Ethiopia contributed to 80% of the country’s electricity mix in 2023
Ethiopia has become a leader in hydropower, with 80% of its electricity coming from this renewable source. Large projects like the Grand Ethiopian Renaissance Dam have played a key role in this expansion.
While hydropower is a valuable energy source, Ethiopia must diversify by adding more wind and solar to its mix. This will help reduce dependency on seasonal water levels and ensure year-round energy reliability.
25. Nigeria’s mini-grid solar market has grown by 20% annually over the past five years
Nigeria has seen a rapid expansion in its mini-grid solar market, with annual growth of 20%. This is helping to address the country’s significant energy access gap, particularly in rural areas.
The government’s push for decentralized energy solutions has encouraged more investment in mini-grids. To keep this momentum going, Nigeria must improve financing mechanisms and streamline regulations to attract even more private sector involvement.
26. Morocco’s Noor Ouarzazate solar complex produces 580 MW, making it one of the largest in the world
Morocco has positioned itself as a leader in solar energy with the Noor Ouarzazate solar complex. Producing 580 MW, this massive solar farm showcases the country’s commitment to renewable energy.
Other developing nations can follow Morocco’s example by investing in large-scale solar projects, securing international funding, and implementing strong policy frameworks to support clean energy.
27. Renewable energy jobs in developing countries surpassed 7.5 million in 2023
The renewable energy sector is now a major employer, providing over 7.5 million jobs in developing nations. Solar, wind, hydropower, and bioenergy are creating employment opportunities across various skill levels.
To continue this growth, countries should invest in training programs and technical education to develop a skilled workforce for the renewable energy sector.
28. Investment in renewables in developing nations reached $310 billion in 2022, up from $250 billion in 2020
Investment in renewable energy in developing countries is increasing at a rapid pace. In just two years, total investment jumped from $250 billion to $310 billion, highlighting the growing confidence in clean energy projects.
This surge in investment is being driven by multiple factors, including the declining cost of solar and wind energy, favorable government policies, and increased international financing.
Many developing nations are now actively seeking foreign direct investment (FDI) to accelerate their transition to renewables.
To maintain this upward trend, governments should focus on creating stable regulatory environments, reducing bureaucratic delays, and offering attractive incentives for investors.
Public-private partnerships can also play a key role in expanding infrastructure and ensuring long-term financial sustainability.
29. The Philippines’ renewable energy share in electricity generation increased from 24% in 2016 to 31% in 2023
The Philippines has made notable progress in renewable energy adoption, increasing its share of clean energy from 24% to 31% over the past seven years. This growth has been driven by investments in geothermal, wind, and solar power.
One of the main factors behind this expansion is the country’s strong commitment to diversifying its energy sources. With frequent typhoons and natural disasters, the Philippines understands the importance of a resilient energy system.
However, there are still challenges, including reliance on coal and slow grid modernization. To further boost renewables, the government should implement stronger incentives for solar and wind energy, streamline permitting processes, and invest in energy storage solutions to improve grid stability.
30. Developing nations’ cumulative renewable energy capacity exceeded 1,500 GW in 2023, nearly double the 2015 level
The total renewable energy capacity in developing nations has now surpassed 1,500 GW, marking a dramatic increase from 2015 levels. This means that in less than a decade, renewable energy capacity in these countries has nearly doubled.
This milestone underscores the rapid pace of transition happening in emerging markets. Countries are moving away from fossil fuels and embracing solar, wind, hydro, and geothermal energy at unprecedented rates.
To keep this momentum going, governments must continue to invest in infrastructure, improve grid reliability, and enhance policy frameworks that encourage renewable energy development.
The private sector must also play a crucial role by investing in research, innovation, and large-scale deployment of renewable technologies.
wrapping it up
The rapid adoption of renewable energy in developing countries is transforming global energy markets. The data shows that nations across Africa, Asia, and Latin America are embracing solar, wind, hydro, and geothermal energy at an unprecedented rate.
Investment is growing, capacity is expanding, and millions of people are gaining access to electricity for the first time through off-grid solutions.
