Top 10 Developing Countries with the Highest Renewable Energy Investment, Indonesia Makes the List

The United Nations Conference on Trade and Development (UNCTAD) states that renewable energy investment has nearly tripled since the 2015 Paris Agreement.

However, UNCTAD notes that most of the funding flows to developed countries. Developing countries still require approximately US$1.7 trillion annually to develop renewable energy investments.

"This includes electricity grids, transmission lines, and storage. They (developing countries) only attracted around US$544 billion in 2022," UNCTAD wrote in its report.

The UNCTAD report also shows that over 30 developing countries have yet to register large international investment projects in renewable energy.

However, UNCTAD also mentions that most of the 10 developing countries with the highest levels of international investment in renewable energy invested in the sector from a small fraction of their total foreign direct investment (FDI).

"Capital is a major barrier to energy investment in developing countries, which are perceived as riskier. Partnerships between international investors, the public sector, and multilateral financial institutions can significantly reduce capital costs," said UNCTAD.

UNCTAD compiled data on the 10 developing countries deemed to have made the largest investments in renewable energy from 2015 to 2022.

Brazil ranks first with US$114.8 billion in project investments. UNCTAD states that Brazil has a 32% share of renewable energy from the total value of renewable energy projects.

Second is Vietnam with US$106.8 billion. The projected share is 31%.

Third is Chile, with US$84.6 billion and a 54% share. Fourth is India, with US$77.7 billion and a 14% share.

Fifth is Kazakhstan with US$56.3 billion and a 31% share. This is followed by Taiwan, with US$48.7 billion and a 63% share—the largest share among these 10 developing countries.

Indonesia is ninth, with US$36.7 billion in investment. The investment share of the total project value is 11%—the smallest among these 10 developing countries.

UNCTAD adds that although most developing countries have set targets for transitioning to sustainable energy sources, only about one-third have translated those targets into investment requirements information.

"The report highlights the importance of lowering capital costs for clean energy investment in developing countries and better supporting them in investment planning and project preparation," said UNCTAD.

The following table shows the value and proportion of the share of total renewable energy investment from 10 developing countries:

* Brazil US$114.8 billion, 32% share
* Vietnam US$106.8 billion, 31% share
* Chile US$84.6 billion, 54% share
* India US$77.7 billion, 14% share
* Kazakhstan US$56.3 billion, 31% share
* Taiwan US$48.7 billion, 63% share
* Egypt US$45.8 billion, 14% share
* Mexico US$37.8 billion, 13% share
* Indonesia US$36.7 billion, 11% share
* Morocco US$29.7 billion, 34% share

*Note:* Includes international project financing and greenfield investment values.