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
Hydropower’s Dominance and Strategic Importance
Hydropower continues to be the backbone of renewable energy in developing nations. Its ability to provide a stable and consistent energy supply makes it an attractive option for governments and investors.
Unlike solar or wind power, which depend on weather conditions, hydropower plants generate electricity continuously, making them the most reliable source of clean energy in these regions.
For businesses looking to enter the renewable energy market, hydropower presents a strategic advantage. Investing in hydroelectric projects not only aligns with sustainability goals but also provides long-term energy security—something highly valued in emerging economies where power outages are common.
Companies that offer hydro-related technologies, infrastructure solutions, or financing options can tap into a market that is both lucrative and growing.
6. The share of renewable energy in electricity generation in developing countries rose from 23% in 2015 to 33% in 2023
What’s Driving the Rapid Rise in Renewable Energy Adoption?
The sharp increase in renewable energy generation in developing countries isn’t happening by chance. It’s the result of a mix of economic shifts, technology advancements, and shifting policies.
Governments, businesses, and investors are recognizing that renewable energy isn’t just a sustainability goal—it’s a financial opportunity.
Falling costs of solar panels and wind turbines have made these energy sources more competitive than ever. Countries that once struggled with high energy costs due to reliance on imported fossil fuels are now seeing local renewables as a way to stabilize their power grids and cut expenses.
At the same time, international funding and private investment have flooded into the sector. The push for green financing, along with commitments from development banks, has unlocked billions of dollars to fund solar farms, wind projects, and battery storage solutions.
For businesses, this presents an opportunity to invest in energy infrastructure and take advantage of long-term cost savings.
7. China accounted for 45% of all renewable energy investment in developing countries in 2022
Why China’s Investment Matters for Emerging Economies
China’s role in renewable energy is not just about numbers—it’s about shaping the future of energy markets worldwide.
In 2022, China accounted for nearly 45% of all renewable energy investments in developing countries, a staggering figure that underscores its aggressive push in clean energy. But what does this mean for businesses, investors, and governments looking to expand their renewable energy footprint?
For developing nations, China’s investment brings more than just capital. It introduces advanced technology, scalable infrastructure, and cost efficiencies that many smaller economies cannot achieve on their own.
Chinese companies dominate global solar panel and wind turbine production, giving them a competitive edge in both affordability and innovation. This means businesses in emerging markets can leverage China’s renewable energy leadership to scale their own operations faster and at lower costs.
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
A Global Leader in Renewable Energy
Brazil’s renewable energy sector is not just growing—it’s setting global benchmarks. With over 80% of its electricity now coming from renewable sources, the country has demonstrated that a large and fast-growing economy can be powered sustainably.
Hydropower, wind, solar, and bioenergy have all played key roles in achieving this milestone, making Brazil an example for other developing nations looking to accelerate their transition to clean energy.
For businesses, this means Brazil is more than just a renewable energy success story—it’s a market full of opportunities.
Companies offering innovative technologies, energy storage solutions, grid modernization, and sustainable energy financing can tap into a rapidly expanding industry with strong government backing and growing consumer demand.
10. Africa’s installed solar PV capacity increased by 24% in 2022 alone
Why Africa’s Solar Boom Matters for Businesses
Africa is no longer just an emerging market for renewable energy—it’s becoming a powerhouse.
The 24% surge in solar PV capacity in 2022 is not just a statistic; it’s a clear signal that solar is transforming the energy landscape across the continent. For businesses, this shift isn’t just about cleaner energy; it’s about new opportunities, cost savings, and long-term market positioning.
Solar energy is rapidly becoming the backbone of Africa’s power infrastructure, and for good reason. Many regions face unreliable electricity grids, frequent outages, and high diesel generator costs.
Solar PV provides a game-changing alternative, offering businesses a stable, cost-effective, and scalable energy solution. The accelerating adoption of solar technology is reducing energy costs, expanding access to underserved markets, and opening up investment channels.
11. Sub-Saharan Africa’s renewable energy investment grew by 25% in 2022 but remains far below global averages
The 25% Growth in Investment: A Promising Yet Insufficient Trend
Sub-Saharan Africa saw a 25% increase in renewable energy investment in 2022, signaling a growing interest in clean energy solutions. However, this surge still lags far behind global averages, leaving a massive gap between potential and reality.
For businesses and investors, this presents both a challenge and a golden opportunity. The region has some of the highest renewable energy potential in the world, yet access to funding, infrastructure, and policy support remains inconsistent.
Understanding the barriers and strategically navigating them is key to unlocking success in Africa’s evolving energy market.
12. Vietnam’s solar power capacity jumped from 134 MW in 2018 to 16.5 GW in 2022
A Rapid Solar Boom That Reshaped Vietnam’s Energy Landscape
Vietnam’s meteoric rise in solar power capacity is nothing short of extraordinary. In just four years, the country went from being a minor player in the solar energy space to becoming one of the world’s fastest-growing solar markets.
This transformation was driven by a combination of progressive government policies, attractive financial incentives, and increasing energy demand from its booming industrial sector.
For businesses, Vietnam’s solar expansion presents a wealth of opportunities. Companies in solar panel manufacturing, grid infrastructure, energy storage, and project financing can capitalize on this momentum.
The rapid growth also signals a shift in energy policies, where private investment and foreign collaboration will play an even larger role in shaping the future of Vietnam’s energy sector.
13. Indonesia aims to achieve 23% renewable energy share in its power mix by 2025, but currently stands at 14%
Why Indonesia’s Renewable Energy Push Matters for Businesses
Indonesia’s renewable energy transition is more than just a policy goal—it’s a market shift that presents major opportunities for businesses and investors.
With the government aiming to raise the share of renewables in the energy mix from 14% to 23% by 2025, the demand for clean energy solutions is accelerating. Businesses that act now can position themselves ahead of the curve, securing cost advantages, sustainability benefits, and regulatory incentives.
As Southeast Asia’s largest economy, Indonesia has a rapidly growing energy demand. The government’s ambitious target signals a strong commitment to reducing reliance on fossil fuels, especially coal, which still dominates the power sector.
This transition is opening the door for investment in solar, wind, hydropower, and geothermal energy. For companies involved in energy, manufacturing, infrastructure, or even tech-driven solutions, this shift is a game-changing opportunity.
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 Surge in Renewable Energy Employment: What It Means for Businesses
In 2023, renewable energy jobs in developing countries surpassed 7.5 million, marking a major shift in global employment trends. This is not just a statistic—it’s a powerful signal of economic transformation.
As clean energy expands, businesses across industries have a rare chance to tap into a skilled workforce, build sustainable operations, and drive economic growth in emerging markets.
For companies involved in solar, wind, hydro, or energy storage, this surge in employment lowers costs, expands talent pools, and enhances innovation. With the right approach, businesses can leverage this workforce growth to scale operations efficiently while contributing to a more sustainable future.
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.
