Renewable energy in developing countries

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Shop selling PV panels in Ouagadougou, Burkina Faso Ouagadougou shop.JPG
Shop selling PV panels in Ouagadougou, Burkina Faso
Solar cookers use sunlight as energy source for outdoor cooking. Solar-Panel-Cooker-in-front-of-hut.jpg
Solar cookers use sunlight as energy source for outdoor cooking.

Renewable energy in developing countries is an increasingly used alternative to fossil fuel energy, as these countries scale up their energy supplies and address energy poverty. Renewable energy technology was once seen as unaffordable for developing countries. [1] However, since 2015, investment in non-hydro renewable energy has been higher in developing countries than in developed countries, and comprised 54% of global renewable energy investment in 2019. [2] The International Energy Agency forecasts that renewable energy will provide the majority of energy supply growth through 2030 in Africa and Central and South America, and 42% of supply growth in China. [3]

Contents

Most developing countries have abundant renewable energy resources, including solar energy, wind power, geothermal energy, and biomass, as well as the ability to manufacture the relatively labor-intensive systems that harness these. By developing such energy sources developing countries can reduce their dependence on oil and natural gas, creating energy portfolios that are less vulnerable to price rises. In many circumstances, these investments can be less expensive than fossil fuel energy systems. [4]

In isolated rural areas, electricity grid extensions are often not economical. Off‐grid renewable technologies provide a sustainable and cost‐effective alternative to the diesel generators that would be otherwise be deployed in such areas. Renewable technologies can also help to displace other unsustainable energy sources such as kerosene lamps and traditional biomass. [5]

Kenya is the world leader in the number of solar power systems installed per capita (but not the number of watts added). More than 30,000 small solar panels, each producing 12 to 30 watts, are sold in Kenya annually. Kenya was the first African country to use geothermal power, and still has the largest installed capacity of geothermal power in Africa at 200 MW, with a potential of up to 10 GW. [6]

Rationale for renewable energy

Global Map of Global Horizontal Irradiation. World GHI Solar-resource-map GlobalSolarAtlas World-Bank-Esmap-Solargis.png
Global Map of Global Horizontal Irradiation.

In 2009, about 1.4 billion of people in the world lived without electricity, and 2.7 billion relied on wood, charcoal, and dung for home energy requirements. This lack of access to modern energy technology limits income generation, blunts efforts to escape poverty, affects people's health, and contributes to global deforestation and climate change. Small-scale renewable energy technologies and distributed energy options, such as onsite solar power and improved cookstoves, offer rural households modern energy services. [8]

Renewable energy can be particularly suitable for developing countries. In rural and remote areas, transmission and distribution of energy generated from fossil fuels can be difficult and expensive. Producing renewable energy locally can offer a viable alternative. [9]

Renewable energy doesn't always have to come from a developing country. The Developing Areas Study Group session is a group of speakers from all over the energy businesses discusses the potential ideas to get developing countries the renewable energy that they need. Papers written by W. Morgan, R. Moss and P. Richard discuss the opportunities of renewable resources that lie within the developing country as well. Morgan and Richard claim firewood and agriculture could play a great role in an alternative energy solution in developing countries, while Richards claims that efficient use of agriculture could lead to renewable energy. Morgan also points out that green plants could play a great role in producing synthetic fuel alcohol, which would not only impact the developing country but the world as a whole in providing an alternative fuel source. [10]

Interest in renewable energies has increased in recent years due to environmental concern about global warming and air pollution, reduced costs of the technologies themselves, and improved efficiency and reliability. [9] In recent years, supportive programs from governments, businesses, nonprofit organizations, and community cooperatives have expanded access to these off-grid technologies and the energy services they provide. Program planners should select “low-hanging fruit” first, aiming for maximum access to modern energy services with the least effort. [8]

Use of renewables

Global Map of Mean Wind Speed. Global Map of Wind Speed.png
Global Map of Mean Wind Speed.

Collectively, developing countries have more than half of global renewable power capacity. China and India are rapidly expanding markets for renewable energy. Brazil produces most of the world’s sugar-derived ethanol and has been adding new biomass and wind power plants. Many renewable markets are growing at rapid rates in countries such as Argentina, Costa Rica, Egypt, Indonesia, Kenya, Tanzania, Thailand, Tunisia, and Uruguay. [12]

In isolated rural areas, electricity grid extensions are often not economical. Off‐grid renewable technologies provide a sustainable and cost‐effective alternative to the diesel generators that would be otherwise be deployed in such areas. Renewable technologies can also help to displace other unsustainable energy sources such as kerosene lamps and traditional biomass. [5]

Technology advances are opening up a huge new market for solar power: the approximately 1.3 billion people around the world who don't have access to grid electricity. Even though they are typically very poor, these people have to pay far more for lighting than people in rich countries because they use inefficient kerosene lamps. Solar power costs half as much as lighting with kerosene. [13] An estimated 3 million households get power from small solar PV systems. [14] Kenya is the world leader in the number of solar power systems installed per capita. More than 30,000 very small solar panels, each producing 12 to 30 watts, are sold in Kenya annually. [15]

Micro-hydro systems configured into village-scale or county-scale mini-grids serve many areas. More than 30 million rural households get lighting and cooking from biogas made in household-scale systems. These stoves are being manufactured in factories and workshops worldwide, and more than 160 million households now use them. [14]

Poverty alleviation

Renewable energy projects in many developing countries have demonstrated that renewable energy can directly contribute to poverty alleviation by providing the energy needed for creating businesses and employment. Renewable energy technologies can also make indirect contributions to alleviating poverty by providing energy for cooking, space heating, and lighting. [4]

Education

Renewable energy can also contribute to education, by providing electricity to schools. Renewable energy for cooking and heating can reduce the time that children spend out of school collecting fuel. [16] There is a high demand for clean energy workforce in Africa, however, many universities in the region still produce more workforce for fossil fuels than for renewable energy industries and thus the supply of human capital is lagging greatly behind demand in solar and wind energy sectors. [17]

Health

2.4 billion people use only traditional biomass, such as wood, residues and dung, for cooking and heating. The constant use of these types of energy sources exposes them to indoor particulate and carbon monoxide concentrations many times higher than World Health Organization (WHO) standards. "Traditional stoves using dung and charcoal emit large amounts of carbon monoxide and other noxious gases. Women and children suffer most, because they are exposed for the longest periods of time. Acute respiratory illnesses affect as much as 6% of the world population. The WHO estimates that 2.5 million women and young children in developing countries die prematurely each year from breathing the fumes from indoor biomass stoves". [18]

Renewable energy can improve this situation by reducing exposure to indoor pollutants. Furthermore, renewable can also provide energy to refrigerate medicine and sterilize medical equipment in rural areas where the access to electricity is difficult. [19] It can also provide power to supply the fresh water and sewerage services needed to reduce the spread of infectious diseases. [4]

Government policies

More developing countries are implementing the public policies needed for the widespread development of renewable energy technologies and markets, which have traditionally been dominated by Europe, Japan, and North America. The exceptions include countries like Brazil, which has built the world’s leading biofuels industry, China, India, which are leaders in developing decentralized renewable sources such as small hydro, small wind, biogas, and solar water heating. [4] However, policies like feed-in tariff are applied. Besides, with the Kyoto Protocol, the program called the Clean Development Mechanism (CDM) that allows for industrialized nations to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries. [20]

Developing-country Governments need to steer resources mobilized for large-scale investments into new production sectors and new technologies. Some argue that policies should base on active industrial policies, combining large scale investments and active policy interventions. There is a need of subsidizing these type of energy services to make them affordable to the major part of the population. [21]

Asia

China

India

Pakistan

Philippines

Bangui Wind Farm in Ilocos Norte, Philippines Bangui Wind Mills.JPG
Bangui Wind Farm in Ilocos Norte, Philippines

The Philippine government sees the growth of the renewable energy sector essential for national energy security. The Philippines' fossil fuel sector is unsustainable, being dependent on the import of nonrenewable fuel, including petroleum, but has significant potential in the renewable energy sector. Based on a report of an Australian consulting firm, International Energy Consultants, the Philippines has the highest electricity rate in Asia, followed by Japan. Transmitting power and transporting fuel throughout the Philippine archipelago is problematic due to very high cost. [22] Compared with neighboring Asian developing countries, the Philippines has relatively higher electricity prices due to the country’s dependence on imported fossil fuels, no government subsidy on electricity generation, fully cost-reflective, monopolized, and heavily taxed across the supply chain. [23] [24]

The Philippines could be considered a world leader in renewable energy, with its 30 percent of its power generation being powered by the renewable energy sector. The Philippines is the world's second largest generator of geothermal energy [25] and was the first Southeast Asian nation to invest in large-scale solar and wind technologies. [22]

Promotion and support of renewable energy in the country was intensified with the passing of the Renewable Energy Act of 2008 which made a feed-in-tariff and a renewable portfolio standard. The Philippines aims to triple renewable energy supply by 2030. [22] [26]

Recently the government has concluded agreements with private developers for extensive projects in Oriental Mindoro with an eventual output of 48 MW, with plans for even larger development in the future. [27] Despite government efforts, some investors have criticized the government's lack of firmness in its feed-in-tariff policy, and the solar industry accused the government for hampering its progress in the country. [28]

Africa

Algeria

On February 3, 2011, Algeria launched the National Development Programme for new and renewable energy and energy efficiency. [29] [30] The program, which spans the period from 2011 to 2013, aims to produce 22,000 MW of electricity from solar and wind power which 10,000 MW for export. [31]

Wind turbine at Ngong Hills in Kenya Wind turbine at Ngong Hills.jpg
Wind turbine at Ngong Hills in Kenya

Kenya

In Kenya, the Ministry of Energy and Petroleum [32] is in charge of renewable energy policies. In March 2008, the country adopted the feed-in tariff policy. In January 2010, the policy was revised to urge private sectors to invest in electricity generation from renewable sources. [33]

Kenya was the first African country to use geothermal power, and still has the largest installed capacity of geothermal power in Africa at 200 MW, with a potential of up to 10 GW. [6] The only other country in Africa utilising geothermal power is Ethiopia.

Kenya is the world leader in the number of solar power systems installed per capita (but not the number of watts added). More than 30,000 small solar panels, each producing 12 to 30 watts, are sold in Kenya annually. For an investment of as little as $100 for the panel and wiring, the PV system can be used to charge a car battery, which can then provide power to run a fluorescent lamp or a small television for a few hours a day. More Kenyans are turning to solar power every year rather than making connections to the country’s electric grid. This is due to the high connectivity costs and the fact that there is an abundance of solar power in Kenya. [34]

Latin America and the Caribbean

In 2021, the European Investment Bank supported the renewable energy sector with €315 million in loans to two private sector project developers. Most of the loans in the area were made towards climate change and environmental sustainability, to public sector borrowers. [35]

The European Investment Bank is also collaborating with a private equity fund called GEF Latam Climate Solutions Fund to invest $200 million in small and medium-sized firms in Latin America that support climate action and environmental sustainability. This investment aims to contribute to the achievement of the Sustainable Development Goals, specifically in climate change mitigation. [35] [36] [37]

Brazil

Paulo Afonso Hydroelectric Powerplant in the State of Bahia Cachoeira de Paulo Afonso.jpg
Paulo Afonso Hydroelectric Powerplant in the State of Bahia

Renewable energy accounted for more than 85.4% of the domestically produced electricity used in Brazil, according to preliminary data from the 2009 National Energy Balance, conducted by the Energy Research Corporation (EPE). [38] After the oil shocks of the 1970s, Brazil started focusing on developing alternative sources of energy, mainly sugarcane ethanol. Its large sugarcane farms helped. In 1985, 91% of cars produced that year ran on sugarcane ethanol. The success of flexible-fuel vehicles, introduced in 2003, together with the mandatory E25 blend throughout the country, have allowed ethanol fuel consumption in the country to achieve a 50% market share of the gasoline-powered fleet by February 2008. [39] [40]

In 2021, the country started establishing wind farms in the states of Paraiba, Piau and Bahia, and solar photovoltaic plants in Paraiba. [41]

Costa Rica

Renewable energy in Costa Rica accounts for over 90% of the total output of the nation's energy. The country is the world leader in renewable use with massive investment in windmill technologies. The government's aim is to make the country the world's first carbon neutral country. [42] [43]

In March 2015 the whole country was running over 75 straight days on 100% renewable energy. [44]

Recent Developments in Financing Renewable Energy

In February 2024, the International Energy Agency (IEA) released the "World Energy Investment Special Report: Reducing the Cost of Capital," which underscores the urgent need for increased investment in clean energy initiatives within developing countries to meet global climate and energy targets. The report delineates that current annual investments, totalling approximately USD 270 billion, need to escalate to around USD 870 billion by the early 2030s to adhere to national climate commitments, and must further increase to USD 1.6 trillion to align with the objectives of limiting global warming to 1.5 degrees Celsius. [45]

Despite a global rise in clean energy investments, which saw an increase of 40% since 2020 to reach USD 1.8 trillion in 2023, a mere 15% has been allocated to developing countries. This allocation is notably inadequate given that these countries constitute about one-third of global GDP and two-thirds of the global population. The disproportionately high cost of capital in these regions, often more than double that in developed economies due to elevated perceptions of political and economic risks, acts as a significant impediment to securing necessary funds. To combat these challenges, the IEA report advocates for the enhancement of regulatory frameworks, an increase in international support, and a substantial expansion of concessional finance, aimed at tripling the current efforts to effectively bridge the investment gap in renewable energy sectors of developing countries. [45] [46]

See also

Related Research Articles

<span class="mw-page-title-main">Renewable energy</span> Energy collected from renewable resources

Renewable energy, green energy, or low-carbon energy is energy from renewable resources that are naturally replenished on a human timescale. Renewable resources include sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy sources are sustainable, some are not. For example, some biomass sources are considered unsustainable at current rates of exploitation. Renewable energy is often used for electricity generation, heating and cooling. Renewable energy projects are typically large-scale, but they are also suited to rural and remote areas and developing countries, where energy is often crucial in human development.

<span class="mw-page-title-main">Energy development</span> Methods bringing energy into production

Energy development is the field of activities focused on obtaining sources of energy from natural resources. These activities include the production of renewable, nuclear, and fossil fuel derived sources of energy, and for the recovery and reuse of energy that would otherwise be wasted. Energy conservation and efficiency measures reduce the demand for energy development, and can have benefits to society with improvements to environmental issues.

<span class="mw-page-title-main">Sustainable energy</span> Energy that responsibly meets social, economic, and environmental needs

Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Most definitions of sustainable energy include considerations of environmental aspects such as greenhouse gas emissions and social and economic aspects such as energy poverty. Renewable energy sources such as wind, hydroelectric power, solar, and geothermal energy are generally far more sustainable than fossil fuel sources. However, some renewable energy projects, such as the clearing of forests to produce biofuels, can cause severe environmental damage.

<span class="mw-page-title-main">Renewable energy commercialization</span> Deployment of technologies harnessing easily replenished natural resources

Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, hot-dry-rock geothermal power, and ocean energy. In 2019, nearly 75% of new installed electricity generation capacity used renewable energy and the International Energy Agency (IEA) has predicted that by 2025, renewable capacity will meet 35% of global power generation.

For solar power, South Asia has the ideal combination of both high solar insolation and a high density of potential customers.

<span class="mw-page-title-main">Renewable energy in Africa</span> Renewable energy in Africa

The developing nations of Africa are popular locations for the application of renewable energy technology. Currently, many nations already have small-scale solar, wind, and geothermal devices in operation providing energy to urban and rural populations. These types of energy production are especially useful in remote locations because of the excessive cost of transporting electricity from large-scale power plants. The applications of renewable energy technology has the potential to alleviate many of the problems that face Africans every day, especially if done in a sustainable manner that prioritizes human rights.

<span class="mw-page-title-main">Renewable energy in Finland</span> Overview of renewable energy in Finland

Renewable energy in Finland increased from 34% of the total final energy consumption (TFEC) in 2011 to 48% by the end of 2021, primarily driven by bioenergy (38%), hydroelectric power (6.1%), and wind energy (3.3%). In 2021, renewables covered 53% of heating and cooling, 39% of electricity generation, and 20% of the transport sector. By 2020, this growth positioned Finland as having the third highest share of renewables in TFEC among International Energy Agency (IEA) member countries.

<span class="mw-page-title-main">Renewable energy in China</span>

China is the world's leader in electricity production from renewable energy sources, with over triple the generation of the second-ranking country, the United States. China's renewable energy sector is growing faster than its fossil fuels and nuclear power capacity, and is expected to contribute 43 per cent of global renewable capacity growth. China's total renewable energy capacity exceeded 1,000 GW in 2021, accounting for 43.5 per cent of the country's total power generation capacity, 10.2 percentage points higher than in 2015. The country aims to have 80 per cent of its total energy mix come from non-fossil fuel sources by 2060, and achieve a combined 1,200 GW of solar and wind capacity by 2030. In 2023, it was reported that China was on track to reach 1,371 gigawatts of wind and solar by 2025, five years ahead of target due to new renewables installations breaking records.

The environmental benefits of renewable energy technologies are widely recognised, but the contribution that they can make to energy security is less well known. Renewable technologies can enhance energy security in electricity generation, heat supply, and transportation. Since renewable energy is more evenly distributed than fossil fuels at the global level, the use of renewable energy technologies can also lead to decentralized and self-sufficient energy systems and reduce energy dependencies among countries.

<span class="mw-page-title-main">100% renewable energy</span> Practice of exclusively using easily replenished natural resources to do work

100% renewable energy is the goal of the use renewable resources for all energy. 100% renewable energy for electricity, heating, cooling and transport is motivated by climate change, pollution and other environmental issues, as well as economic and energy security concerns. Shifting the total global primary energy supply to renewable sources requires a transition of the energy system, since most of today's energy is derived from non-renewable fossil fuels.

Energy use and development in Africa varies widely across the continent, with some African countries exporting energy to neighbors or the global market, while others lack even basic infrastructures or systems to acquire energy. The World Bank has declared 32 of the 48 nations on the continent to be in an energy crisis. Energy development has not kept pace with rising demand in developing regions, placing a large strain on the continent's existing resources over the first decade of the new century. From 2001 to 2005, GDP for over half of the countries in Sub Saharan Africa rose by over 4.5% annually, while generation capacity grew at a rate of 1.2%.

<span class="mw-page-title-main">Energy transition</span> Significant structural change in an energy system

An energy transition is a significant structural change in an energy system regarding supply and consumption. Currently, a transition to sustainable energy is underway to limit climate change. It is also called renewable energy transition. The current transition is driven by a recognition that global greenhouse-gas emissions must be drastically reduced. This process involves phasing-down fossil fuels and re-developing whole systems to operate on low carbon electricity. A previous energy transition took place during the industrial revolution and involved an energy transition from wood and other biomass to coal, followed by oil and most recently natural gas.

<span class="mw-page-title-main">Renewable energy in Kenya</span>

Most of Kenya's electricity is generated by renewable energy sources. Access to reliable, affordable, and sustainable energy is one of the 17 main goals of the United Nations’ Sustainable Development Goals. Development of the energy sector is also critical to help Kenya achieve the goals in Kenya Vision 2030 to become a newly industrializing, middle-income country. With an installed power capacity of 2,819 MW, Kenya currently generates 826 MW hydroelectric power, 828 geothermal power, 749 MW thermal power, 331 MW wind power, and the rest from solar and biomass sources. Kenya is the largest geothermal energy producer in Africa and also has the largest wind farm on the continent. In March 2011, Kenya opened Africa's first carbon exchange to promote investments in renewable energy projects. Kenya has also been selected as a pilot country under the Scaling-Up Renewable Energy Programmes in Low Income Countries Programme to increase deployment of renewable energy solutions in low-income countries. Despite significant strides in renewable energy development, about a quarter of the Kenyan population still lacks access to electricity, necessitating policy changes to diversify the energy generation mix and promote public-private partnerships for financing renewable energy projects.

<span class="mw-page-title-main">Renewable energy in Ethiopia</span>

Ethiopia generates most of its electricity from renewable energy, mainly hydropower.

<span class="mw-page-title-main">Renewable energy in Turkey</span>

Renewables supply a quarter of energy in Turkey, including heat and electricity. Some houses have rooftop solar water heating, and hot water from underground warms many spas and greenhouses. In parts of the west hot rocks are shallow enough to generate electricity as well as heat. Wind turbines, also mainly near western cities and industry, generate a tenth of Turkey’s electricity. Hydropower, mostly from dams in the east, is the only modern renewable energy which is fully exploited. Hydropower averages about a fifth of the country's electricity, but much less in drought years. Apart from wind and hydro, other renewables; such as geothermal, solar and biogas; together generated almost a tenth of Turkey’s electricity in 2022. Türkiye has ranked 5th in Europe and 12th in the world in terms of installed capacity in renewable energy. The share of renewables in Türkiye’s installed power reached to 54% at the end of 2022.

In 2013, renewable energy provided 26.44% of the total electricity in the Philippines and 19,903 gigawatt-hours (GWh) of electrical energy out of a total demand of 75,266 gigawatt-hours. The Philippines is a net importer of fossil fuels. For the sake of energy security, there is momentum to develop renewable energy sources. The types available include hydropower, geothermal power, wind power, solar power and biomass power. The government of the Philippines has legislated a number of policies in order to increase the use of renewable energy by the country.

Denmark is a leading country in renewable energy production and usage. Renewable energy sources collectively produced 81% of Denmark's electricity generation in 2022, and are expected to provide 100% of national electric power production from 2030. Including energy use in the heating/cooling and transport sectors, Denmark is expected to reach 100% renewable energy in 2050, up from the 34% recorded in 2021.

<span class="mw-page-title-main">Renewable energy in South Africa</span>

Renewable energy in South Africa is energy generated in South Africa from renewable resources, those that naturally replenish themselves—such as sunlight, wind, tides, waves, rain, biomass, and geothermal heat. Renewable energy focuses on four core areas: electricity generation, air and water heating/cooling, transportation, and rural energy services. The energy sector in South Africa is an important component of global energy regimes due to the country's innovation and advances in renewable energy. South Africa's greenhouse gas (GHG) emissions is ranked as moderate and its per capita emission rate is higher than the global average. Energy demand within the country is expected to rise steadily and double by 2025.

<span class="mw-page-title-main">World energy supply and consumption</span> Global production and usage of energy

World energy supply and consumption refers to the global supply of energy resources and its consumption. Throughout its lifecycle, global energy supplies have multiple different stages such as initial production, refinement activities, trade of energy resources, and final consumption of the energy.

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