Emerging markets are undeniably today’s hot spot when considering wind power projects and there are clear indications that developing economies will soon dominate the chart with top markets to invest in.
It is important to remember that renewable energy development in emerging markets follows a path very different from the one set by the centralised grids of the industrialised world.
Renewables growth in developing countries is fueled not so much by government subsidies and environmental concerns but by pure energy demand that needs to be met in a quick and relatively inexpensive way. The lack of centralised grid infrastructure is not a barrier, but rather an opportunity to distributed renewable generation. And last but not least, thanks to technological advances some renewable energy sources are today cost competitive with their fossil fuels counter parts. For example, according to the Climatescope 2014 report, put up by research firm Bloomberg New Energy Finance (BNEF), the average electricity price for industrial users in 55 emerging markets in Africa, Asia, Latin America and the Caribbean was USD 147.9 (EUR 133.7) per MWh in 2013, well above BNEF’s levelised cost of electricity for wind of USD 82.