With the recent inclusion of six new members, BRICS is set to spearhead the global push for renewable energy production. The bloc, comprising Brazil, Russia, India, China, and South Africa, originally named after the initials of its founding nations, is now gearing up to enhance its influence on the world economy. The addition of the United Arab Emirates, Saudi Arabia, Iran, Egypt, Ethiopia, and Argentina, set to join officially in January 2024, was confirmed during the latest summit held in South Africa.
Projections from Oslo-based consultancy firm Rystad Energy are optimistic about the expanded alliance’s renewable energy prospects. By 2050, BRICS is expected to derive over 80 % of its energy from renewable sources. Currently, the total capacity for renewable energy stands at 11 terawatts, which is double the combined energy demand of the seven member countries, totaling 4.5 terawatts.
Rystad Energy also highlights the rapidly increasing demand for renewable energy due to falling costs. This trend is creating substantial opportunities for investors hailing from BRICS-associated nations.
Key BRICS members, including China and the United Arab Emirates (UAE), are pivotal in driving the transition to renewable energy through various projects. They are instrumental in supplying critical components such as batteries and solar panels for renewable ventures.
The UAE has set ambitious goals to achieve zero carbon emissions by 2050 and is making substantial investments, allocating $4.79 billion for Energy Strategy 2050 and $5.4 billion for the National Hydrogen Strategy. Abu Dhabi’s renowned renewable energy firm, Masdar, is actively engaged in projects across more than 40 countries, with investments exceeding $3 trillion. The company has set a target to add at least 100 GW of renewable energy capacity by 2030.
Saudi Arabia, with a target of zero carbon emissions by 2060, has also announced significant renewable projects, including a 2.0 GW solar plant in Mecca.
In addition to renewable energy, the BRICS bloc is witnessing a surge in electric vehicle (EV) development, with China leading the world in EV sales, surpassing even the G-7 member countries. Rystad predicts that EVs will constitute over 60 percent of total new car sales in the expanding BRICS bloc by 2035, underscoring the alliance’s significant role in fueling the electric vehicle industry.
BRICS and its member countries continue to play a vital role in shaping the future of renewable energy and sustainable development.
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