Renewable energy across continents 3 countries are leaders in its scope

ArabiaWeather - Yalla Trade - Over the past two decades, renewable energy, especially solar and wind energy, has witnessed tremendous growth thanks to supportive government policies and lower costs. Currently, the cost of building new onshore solar and wind energy plants is about 40% less than the cost of generating energy. From coal or gas, these cost declines have made the shift to renewable energy irreversible.

Global challenges to achieving climate goals

Although the transition to renewable energy seems inevitable, the key question remains whether the world can achieve this transition quickly enough to limit global warming. According to the State of Climate Action 2023 report, solar energy makes up 4.5% and wind energy 7.5% of total global electricity generation. , a total of 12%, and to achieve the goals set out in the Paris Agreement on climate change, solar and wind energy together must constitute between 57% and 78% of the global electricity mix by 2030, and the specific range depends on the amount of other carbon-free energy, such as Nuclear or hydroelectric power, which is introduced.

Leading countries in the expansion of solar and wind energy

Among the countries that have proven their ability to expand the use of solar and wind energy faster, Uruguay, Denmark, and Lithuania stand out, and these countries have succeeded in increasing their renewable energy capacities at higher average annual rates than required over five years.

The eight countries leading the way in scaling up solar and wind energy are very diverse, proving that a rapid transition to renewable energy can be achieved in multiple and varying contexts. This group includes countries with varying income levels; Denmark has a high income level, reaching $67,000 per capita GDP in 2022, while Uruguay and Lithuania belong to the middle-income category, with per capita GDP of $21,000 and $25,000, respectively. On the other hand, there are low-income countries such as Namibia and Jordan, with per capita GDP of $5,000 and $4,000, respectively.

• Denmark: Leader in innovation in wind energy

Denmark has been at the forefront of wind energy innovation for more than a century. In 1891, a Danish scientist built one of the world's first wind turbines, a legacy that continues today. The Danish government invests in renewable energy research and development at higher rates than any other country. It hosts Vestas, the world's largest wind turbine manufacturer.

Government policy greatly promoted the growth of wind energy in Denmark. After the oil crisis in the 1970s, the country began to develop the wind industry in earnest. The government provided subsidies such as feed-in tariffs that ensured fixed prices for wind energy suppliers, and encouraged community ownership of turbines, which helped boost public support. More than half of Denmark's energy comes from wind energy, the highest percentage of any country, and the Danish electricity system is connected to neighboring countries, allowing excess energy to be exported during windy days. However, Denmark needs to increase the deployment of renewable energy to achieve its ambitious goals to reduce emissions. Especially since the growth of renewable energy sources has slowed since 2015.

• Uruguay: Rapid transition to wind energy

In five years, Uruguay has increased the share of wind energy from 1% to 34% of the national electricity mix, the fastest increase achieved by any country in such a short time frame, even though Uruguay's per capita GDP is well below Denmark, the country has succeeded in achieving this transformation thanks to its response to the drought crisis that affected energy supplies.

In response to falling water levels in dams, the Uruguayan government developed a comprehensive renewable energy plan in 2008, and encouraged investment in wind energy through a financing program and competitive auctions. Thanks to this strategy, Uruguay received significant investments in clean energy. However, after 2018, growth slowed. With the need to import fossil fuels declining, Uruguay has begun exporting excess energy to neighboring countries, but the ongoing drought may force Uruguay to consider expanding its wind energy capabilities again in the future.

• Namibia: Solar energy leader

Namibia's situation is quite different from Denmark and Uruguay, with a GDP per capita of just $4,911. Although 44% of its population lacked access to electricity in 2020, Namibia has become a leader in solar energy, and within a decade Solar energy has grown to constitute a quarter of the national electricity mix.

Namibia imports most of its energy needs from neighboring countries, which has been increasingly expensive following supply shortages in South Africa. In response, Namibia has turned to solar energy, taking advantage of the country's abundance of sun. The government has launched a program to encourage private investment in solar energy, which has led to the development of numerous independent projects, and this has contributed to reducing solar energy prices to among the lowest in Africa.

Namibia continues to make exciting progress, including commissioning its first solar-powered seawater desalination system in 2019, and signing a partnership with Power Africa to support the Mega Solar initiative. However, Namibia still has to maintain solar growth to keep pace. Increase in future energy demand, especially with the need to expand access to electricity in rural areas.

The impact of renewable energy on the economy and trade

Renewable energy contributes significantly to the global economy by reducing dependence on fossil fuels, creating job opportunities, and stimulating innovation. Countries that invest in renewable energy work to strengthen their local economy and attract global investments, which increases their competitiveness in international markets, in addition to that. Investing in renewable energy has positive effects on international trade, as countries that export renewable energy become able to export their technologies and solutions to other markets, which enhances sustainable global economic growth.

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