Renewable energy investment hits record $140 billion in developing markets

Investment in renewable energy projects within low- and middle-income economies reached a record $140 billion in 2025. Data indicates that capital deployment is increasingly driven by domestic sources rather than solely by wealthier nations. In 2025, 68% of funding for projects in these markets originated from sources operating within those same economies, with private investors providing approximately 85% of asset finance.

Investment remains geographically concentrated. Between 2016 and 2025, India, Brazil, and Turkey accounted for 52% of disclosed renewable utility-scale investment, with India alone representing 29%.

In Africa, the energy transition is shifting focus toward integrated infrastructure. A new R3.89 billion clean-infrastructure fund has closed to target commercial and industrial solar and energy-storage projects across Africa and the Indian Ocean islands. This fund includes a R240 million commitment from the Development Bank of Southern Africa. The initiative aims to address grid instability and support economic productivity by moving beyond simple generation capacity to include transmission, water, and gas assets.