Emerging market countries are lagging behind the developed world in rolling out renewable energy, despite their generally sunnier climes lending themselves to potentially cheap and reliable solar power. However, some developing countries such as Lithuania and Uruguay and Indian states such as Tamil Nadu are rapidly developing wind and solar power, demonstrating that middle and lower-income nations can make progress in adopting green energy. “To date [wind and solar power] have largely been dominated by developed economies,” said Gerard Wynn, energy finance consultant at the Institute for Energy Economics and Financial Analysis, a think-tank, in part because of the EU’s renewable energy directive, which set binding targets for its 28 member states. “But it certainly isn’t inevitable [that emerging market countries lag behind] because Uruguay is the absolute standout. They seem to be second globally now, behind Denmark, and are in the vanguard of emerging economies that are catching up,” he added. Despite this, FT analysis of IEEFA data suggests that, as of 2016, wind and solar power only accounted for 3.4 per cent of electricity generation, on average, in the 48 emerging countries for which it has data. The figures vary from 30 per cent in Lithuania, 26 per cent in Uruguay and 13.7 per cent in Romania, to zero in several Gulf and Balkan states, as well as Russia and Indonesia. Wind and solar accounted for 10.9 per cent of power generation in developed countries in the same year, with Denmark leading the way at 46.7 per cent, ahead of Portugal, Spain and Ireland, all above the 20 per cent mark. When all renewables, including hydropower, geothermal energy and biomass are factored in, the emerging market countries covered by the IEEFA on average generated 23.2 per cent of their electricity from such sources in 2016.
FT 3rd April 2018 read more »