In this article, we will be covering the 16 countries with the cleanest energy in the world. If you want to skip our detailed analysis of the global renewable energy market, you can go directly to 5 Countries with Cleanest Energy in the World.
Renewables on the Rise: Forecasted Growth in Global Power Generation Mix
Driven by various factors such as the need to combat climate change, reduce greenhouse gas emissions, and create a sustainable energy future, the demand for renewable and clean energy is rising. The transition to renewable energy does not only benefit the environment and public health but also contributes to economic growth, job creation, and energy access in both developed and developing regions. According to a report by Precedence Research, the global renewable energy market was valued at $970 billion in 2022. The market is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2023 to 2032 to reach a value of more than $2.18 trillion by the end of the forecast period. While the Asia-Pacific region was the largest market in 2022, North America is expected to be the fastest-growing region during the forecast period. China and the United States both rank high among the countries with the most clean energy production.
Growing concerns about climate change and environmental, social, and governance (ESG) factors are attracting significant investments towards renewable energy projects around the world. Moreover, the increasing industrialization and urbanization in developing countries are boosting the demand for electricity, leading to a higher adoption of renewable energy sources. As reported by the International Energy Agency (IEA), renewables share of the global power generation mix is expected to rise from 29% in 2022 to 35% in 2025, while the shares of coal and gas-fired power generation are expected to decline. Consequently, the CO2 intensity of global power generation is projected to continue decreasing in the upcoming years.
A Look at the Key Players in the Global Renewable Energy Industry
Some of the most prominent names in the global renewable energy market are Clearway Energy, Inc. (NYSE:CWEN), Avangrid, Inc. (NYSE:AGR), and First Solar, Inc. (NASDAQ:FSLR).
First Solar, Inc. (NASDAQ:FSLR) is an American solar technology company. As a global provider of responsibly produced eco-efficient solar modules, the company specializes in developing advanced thin film photovoltaic (PV) modules. The company has a manufacturing presence in four countries, including the US, India, Vietnam, and Malaysia. First Solar, Inc. (NASDAQ:FSLR) is one of the best renewable energy stocks to buy according to hedge funds. On February 27, First Solar, Inc. (NASDAQ:FSLR) reported strong earnings for the fiscal fourth quarter of 2023. The company reported earnings per share (EPS) of $3.25, surpassing EPS estimates by $0.12. The company’s revenue for the quarter grew by 15.58% year-over-year and amounted to $1.16 billion. Here are some comments from First Solar, Inc.’s (NASDAQ:FSLR) Q4 2023 earnings call:
“Regarding growth, we exited the year with 16.6 gigawatts of nameplate capacity. This marks an increase of 6.8 gigawatts from 2022 driven by the commencement of operations at our Series 6 factories in Ohio and India. In 2023, we announced a $1.1 billion investment in a new manufacturing facility in Louisiana, which is expected to add 3.5 gigawatts to our nameplate capacity in 2026. When combined with our Alabama facility and our Ohio manufacturing footprint expansions, both of which are in progress, we expect 2026 year-end nameplate capacity of approximately 14 gigawatts domestically, with another 11 gigawatts internationally for a global nameplate capacity of approximately 25 gigawatts.”
As the demand for renewable energy grows, companies operating in this space continue to develop green energy solutions, particularly in solar power and wind power technology. On February 22, Avangrid, Inc. (NYSE:AGR) announced that it has successfully powered up the first 5 GE Haliade-X turbines for the groundbreaking Vineyard Wind 1 project, supplying clean energy to around 30,000 homes and businesses in Massachusetts. Vineyard Wind 1, the first major offshore wind project in the US, is currently contributing approximately 68 Megawatts to the New England grid. Once fully operational, this project will generate a substantial 806 megawatts (MW) of clean electricity, which would be enough to power 400,000 homes and businesses in Massachusetts.
Clearway Energy, Inc. (NYSE:CWEN) is an American renewable energy company. With about 6,000 net megawatts (MW) of installed wind, solar, and energy storage, it is one of the largest renewable energy companies in the US. Clearway Energy, Inc. (NYSE:CWEN) also ranks among the best clean energy stocks to buy according to billionaires. On February 22, Clearway Energy, Inc. (NYSE:CWEN) announced that it has completed its 452 MW Texas Solar Nova complex in Kent County, Texas, with Verizon Communications Inc. (NYSE:VZ). Carried out in two phases, this project is set to produce sufficient electricity to power more than 190,000 homes each year. Clearway’s Texas Solar Nova offtake agreements will help Verizon Communications Inc. (NYSE:VZ) reach its aim of sourcing the equivalent of 50% of its total annual electricity consumption through renewable energy by 2025. Moreover, a portion of the renewable attributes generated by the solar projects will be utilized to assist SKF and Toyota Boshoku America in meeting their decarbonization objectives through the purchase of Renewable Energy Certificates (RECs).
Now that we have discussed what’s going on in the global renewable energy market, let’s take a look at the 16 countries with the cleanest energy in the world.
Solar panels in an agricultural field, highlighting the company’s commitment to renewable energy.
Methodology
In this article, we have listed the 16 countries with the cleanest energy in the world. To collect data for our list, we consulted The International Renewable Energy Agency (IRENA). This database provided us with a list of countries and information on their renewable energy capacity as well as generation for the year 2021. We used the renewable energy share of electricity generation to narrow down our selection and rank the top 16 countries with the cleanest energy in the world.
The renewable energy share of electricity capacity is our secondary metric. In the case where multiple countries had the same renewable energy share of electricity generation, tie-breaking was done on the basis of renewable energy share of electricity capacity. The 16 countries with the cleanest energy in the world are listed below in ascending order.
Please note that dependent territories, regions, and areas that are not classified as countries have not been included in this list.
16 Countries with Cleanest Energy in the World
16. Tajikistan
Renewable Energy Share of Electricity Generation (%): 92.77%
Renewable Energy Share of Electricity Capacity (%): 88.02%
Tajikistan is a small landlocked country in Central Asia that ranks among the 16 countries with the cleanest energy in the world. Home to several rivers, natural lakes, and glaciers, the country relies heavily on hydro for electricity generation. In 2021, Tajikistan generated 92.77% of its energy from renewable sources.
15. Belize
Renewable Energy Share of Electricity Generation (%): 92.86%
Renewable Energy Share of Electricity Capacity (%): 51.74%
Belize is a small country on the eastern coast of Central America. Hydroelectricity is the main source of energy in Belize. However, the country is looking to utilize other sources of renewable energy, such as solar power as well as biomass. In 2021, renewable energy accounted for 92.86% of electricity generation in Belize. It ranks among the top 15 on our list of countries with the cleanest energy in the world.
14. Andorra
Renewable Energy Share of Electricity Generation (%): 93.34%
Renewable Energy Share of Electricity Capacity (%): 97.02%
Andorra is a small landlocked country in Europe. It is located between France and Spain in the Pyrenees mountains on the Iberian Peninsula. Hydroelectricity and bioenergy are the two main renewable energy sources in the country. Andorra generated 93.34% of its electricity from renewable energy sources in 2021.
13. Central African Republic
Renewable Energy Share of Electricity Generation (%): 96.47%
Renewable Energy Share of Electricity Capacity (%): 21.02%
The Central African Republic is a landlocked country in Central Africa. It ranks among the poorest countries in the world. According to reported data, the Central African Republic generated 96.47% of its energy from renewable sources in 2021.
12. Uganda
Renewable Energy Share of Electricity Generation (%): 97.84%
Renewable Energy Share of Electricity Capacity (%): 92.22%
Uganda is a landlocked country in East Africa that ranks 12th on our list of countries with the cleanest energy in the world. Known for its diverse landscape, which includes the snow-capped Rwenzori Mountains and the great Lake Victoria, Uganda is rich in renewable energy resources. In 2021, renewable energy accounted for 97.84% of electricity generation in Uganda.
11. Norway
Renewable Energy Share of Electricity Generation (%): 98.82%
Renewable Energy Share of Electricity Capacity (%): 97.77%
Norway, in Northern Europe, is a Scandinavian country encompassing mountains, glaciers, and deep coastal fjords. Most of the country’s electricity is generated from water and hydroelectric power stations. Norway generated 98.82% of its energy from renewable sources in 2021.
10. Democratic Republic of the Congo
Renewable Energy Share of Electricity Generation (%): 99.04%
Renewable Energy Share of Electricity Capacity (%): 98.95%
The Democratic Republic of the Congo, also known as DR Congo, is a country in Central Africa that ranks among the top 10 on our list of countries with the cleanest energy in the world. As one of the largest countries in Africa, it has huge hydropower potential. In 2021, renewable energy accounted for 99.04% of electricity generation in The Democratic Republic of the Congo.
9. Eswatini
Renewable Energy Share of Electricity Generation (%): 99.78%
Renewable Energy Share of Electricity Capacity (%): 94.76%
Eswatini, previously Swaziland, is a small landlocked country in Southern Africa. Hydro, biomass, and solar are the main renewable energy sources in the country. According to reported data, Eswatini generated 99.78% of its electricity from renewable sources in 2021.
8. Lesotho
Renewable Energy Share of Electricity Generation (%): 99.79%
Renewable Energy Share of Electricity Capacity (%): 99.15%
Lesotho is a small landlocked country in Southern Africa. While the country’s main renewable energy source is hydroelectricity, it also has great potential for wind generation and solar power. In 2021, renewable energy accounted for 99.79% of electricity generation in Lesotho. It ranks 8th on our list of countries with the cleanest energy in the world.
7. Costa Rica
Renewable Energy Share of Electricity Generation (%): 99.98%
Renewable Energy Share of Electricity Capacity (%): 88.2%
Costa Rica is a country in the Central American region of North America. The main source of energy in the country is hydroelectricity. Other sources of renewable energy include geothermal energy, biomass, wind power, and solar power. In 2021, Costa Rica generated 99.98% of its energy from renewable sources.
6. Iceland
Renewable Energy Share of Electricity Generation (%): 99.99%
Renewable Energy Share of Electricity Capacity (%): 95.8%
Iceland is a Nordic island country that is known for its diverse landscape which features volcanoes, geysers, hot springs, lava fields, and massive glaciers. Hydroelectricity and geothermal power are the main sources of energy in the country. Iceland generated 99.99% of its electricity from renewable sources in 2021. It ranks 6th on our list of the countries with the cleanest energy in the world.
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Disclosure: None. 16 Countries with Cleanest Energy in the World is published on Insider Monkey.