The solar boom is rapidly transforming emerging economies

Emerging economies, such as those in Southeast Asia and Sub-Saharan Africa, are rapidly transitioning from fossil fuels to renewable electricity sources, as opposed to industrialized nations of the past that relied on polluting fossil energy sources. Global climate change necessitated this shift, as reliance on fossil fuels contributed to the current crisis.

However, these nations face challenges related to outdated infrastructure, which hinders their transition to renewables. The advantage these countries have is their paucity of existing energy infrastructure built around fossil fuels, allowing for quicker and less costly solar and wind farm installations.

In addition, electronics and electric devices have become more affordable, making electricity a more accessible option for cooking, heating, and other purposes. The prices of electric cars are also decreasing, with electric scooters and motorbikes in India, Indonesia, and Vietnam now costing the same as their petrol counterparts.

Nevertheless, solar power has become the most economical choice for many countries, as it is cheaper to produce than fossil electricity. Furthermore, solar installations take less time and have lower upfront costs compared to large coal or gas plants.

Middle and lower-income countries are capitalizing on these advantages, as they have historically used less fossil fuels and more renewables than higher-income nations. Solar power in particular is now cheaper to produce than fossil electricity, making it an attractive and financially viable option. Countries like Kenya, Ethiopia, Namibia, and others in Sub-Saharan Africa are fast-tracking their energy infrastructure expansion to meet the demands of their growing populations, while regions with access to power often face unreliable energy supply.

Solar power, due to its affordability and abundance in sunlight, has emerged as the preferred solution for both energy access and independence. In fact, it has become the default technology, with countries like Namibia, South Africa, Kenya, and Senegal experiencing significant solar capacity increases in recent years. As cheap and sustainable solar power and battery storage spread, economic growth and fewer financial crises are likely to follow in emerging markets.