Baku: The growth in renewable energy is primarily concentrated in China, the United States, and the European Union, leaving developing countries grappling with significant financial obstacles, as highlighted by Gauri Singh, Deputy Director General of the International Renewable Energy Agency (IRENA), during her address at the Baku Energy Forum, APA-Economics reports.
According to Azeri-Press News Agency, Singh noted that while 570 gigawatts of renewable energy capacity were globally operationalized in 2023, only 17 gigawatts of this growth occurred outside China, the EU, and the US, underscoring a significant disparity. She pointed out that for developing nations, limited financial resources remain a critical barrier to progress in renewable energy.
Singh emphasized that despite discussions on financing at COP29, substantial efforts are still needed. She noted that not only the total finance allocated is crucial, but also the cost of capital presents a major issue. Compared to their developed counterparts, developing countries face much higher costs in accessing capital.
Furthermore, Singh highlighted the necessity for developing countries to not only focus on energy generation but also prioritize the development of transmission infrastructure. She explained that grid projects typically take 5-7 years to implement, and without parallel expansion of grid capacities, there will be significant mismatches between energy generation and consumption locations.
Singh also addressed the global progress in electricity generation, while pointing out the need for advancement in the electrification of transport, decarbonization of industry, and electrification of heating and cooling systems. She concluded by stating that these areas present real challenges that will require ongoing discussion and action.