In developed markets, the phrase “energy transition” is often seen through a substitution frame: old molecules out, new electrons in. In growth markets, the reality is more urgent and more practical. It is not about replacing one stable system with another and decarbonising. It is about building enough power, quickly enough, cheaply enough and reliably enough to meet fast-rising demand as well as decarbonising. In that context, the energy transition often means energy security, addition and competitiveness.

That distinction matters. Growth markets are where most of the world’s energy demand growth is taking place, yet they remain under-allocated by global infrastructure capital. These economies account for 80% of additional global electricity demand through 2030¹, while attracting only a fraction of global clean energy investment.

The renewables advantage

Growth markets need more power. Demand is being pushed up simultaneously by industrialisation, urbanisation, digitalisation and rising incomes and development. The challenge is whether supply can keep pace.

And the truth is that in many of these markets, clean power is increasingly the most economical way to meet that demand. This is the real strategic inflection point. Renewables are no longer compelling only because they are lower carbon. We believe they are compelling because they are often the cheapest, fastest and most scalable form of new generation. The levelised cost of electricity is cheaper for over 90% of new renewable projects than fossil fuel alternatives and the 93% decline in costs we have witnessed since 2010 for BESS complements and reinforces the attractiveness of renewables.²

Read the full ‘Thought Leadership’ article at the link below