The website of the American publication Foreign Policy recently published an article stating that following the outbreak of the US-Iran conflict, rising international oil and gas prices have placed practical pressure on many developing nations reliant on energy imports. It is precisely within this context that Global South countries are accelerating their embrace of clean energy.
Clean Energy as Both a Climate and Development Issue
In the past, solar, wind, battery storage, and electric vehicles were largely viewed as long-term solutions for addressing climate change and reducing carbon emissions. Today, in many Global South nations, clean energy is becoming a practical choice for reducing external energy dependence and enhancing energy self-sufficiency.
The article points out that the global clean energy transition already has an economic foundation. In 2025, global investment in clean energy reached a record $2.2 trillion, double the investment in fossil fuels. In 2024, 91% of newly commissioned large-scale renewable energy projects globally had generation costs lower than the cheapest new fossil fuel power projects. Simultaneously, battery storage costs have fallen 93% since 2010, further enhancing the practicality of solar and wind power within electricity systems.
This cost advantage is now accelerating its spread to developing nations.
Chinese Manufacturing as a Key Pillar for Global South Energy Transition
The article notes that in 2024, China's exports of solar products to developing economies already surpassed those to developed economies. In the same year, Pakistan imported approximately 17 gigawatts of Chinese solar modules, a scale nearly equivalent to half of its grid-connected power capacity. In Indonesia, Thailand, and Mexico, lower-priced Chinese-made electric vehicles are approaching the price levels of the cheapest internal combustion engine vehicles.
Indonesian President Prabowo stated at the ASEAN Summit that against the backdrop of instability in the Middle East, energy dependence is "no longer a long-term issue, but an urgent one." Indonesia's state-owned electricity company subsequently launched a tender for a 1,225-megawatt large-scale solar project and is promoting a new national solar target. The Bangladesh Power Development Board also issued a tender for a 495-megawatt grid-connected solar project in April. Countries like India and Vietnam are also advancing solar, renewable energy, and projects to replace liquefied natural gas.
The article states that these projects did not suddenly emerge after the outbreak of the current crisis. Large-scale energy investments often require years of preparation. However, this round of energy shocks is altering the strategic significance of these projects and is also driving faster approval and implementation.
In the transportation sector, Global South nations are similarly accelerating their shift towards cleaner options. Chile offers preferential credit to taxi drivers purchasing electric vehicles, Cambodia has lowered import duties on electric vehicles, and Laos has reduced fuel consumption taxes. For these countries, transport electrification not only signifies future emission reductions but can also alleviate pressure from oil price volatility.
The article concludes that current international energy price fluctuations are prompting Global South nations to reassess their energy security and development pathways, accelerating their embrace of clean energy.
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