In a world increasingly aware of its carbon footprint, emerging economies are rapidly turning to renewable energy sources, such as wind and solar, as financially savvy alternatives. These transitions are not only cost-effective but also potentially lucrative, promising substantial economic growth for developing nations.
According to a study from Oxford University, low- and middle-income countries stand to enhance their GDP by about 10% over the next two decades through a swift adoption of renewable energy. From 2017 to 2022, investments in renewables contributed a staggering $1.2 trillion to GDP across the 100 largest developing countries, excluding China, reflecting a 2-5% GDP increase in these nations.
The report’s executive summary highlights, “Renewable energy drives prosperity. Done well, it can expand affordable energy access, attract investment, create new jobs and increase productivity for the entire economy.”
This economic shift is largely driven by the plummeting costs of renewables. Since 2010, solar energy costs have decreased by 90%, as noted by Sam Stranks, Professor of Energy Materials & Optoelectronics at the University of Cambridge, who remarked to NewScientist that solar panels are now as affordable as plywood. Consequently, renewables have become a more lucrative investment than fossil fuels, with a stronger impact on local supply chains and income.
Moreover, decentralized solutions like solar mini-grids effectively serve rural areas where grid connections are often unreliable and costly, as Semafor summarizes.
Countries like Pakistan are witnessing a solar revolution, with residents increasingly adopting solar-plus-battery systems to circumvent unreliable and expensive local grids. Pakistan is now recognized as “one of the world’s largest new adopters” of solar power, as noted by Jan Rosenow of the University of Oxford.
The trend of adopting renewable energy at staggering speeds is not isolated to Pakistan. Nations such as Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia are advancing in their clean energy transitions, with 63 percent of emerging markets in these regions now generating more solar power than the United States, according to CNN.
This global shift towards clean energy is partly driven by affordable renewable components from China. While concerns exist about China’s growing influence, its cost-effective supply chains have been pivotal in enabling sustainable development in these economies. Offers of climate financing from Western nations have often been unreliable, as noted by a Nature report.
Despite ongoing challenges and policy shifts in major economies, the affordability of renewables suggests they are “too cheap to fail,” as reported by Oilprice.com. NewScientist recently pondered, “Is it fanciful to imagine that solar could one day power everything?”
Original Story at oilprice.com