Global renewable energy investment and market drivers

Renewable energy investment in low- and middle-income economies reached a record $140 billion in 2025. This growth is increasingly supported by domestic capital, with 68% of funding originating from within those same economies and private investors providing roughly 85% of asset finance. Investment remains concentrated in India, Brazil, and Turkey, which together accounted for 52% of disclosed utility-scale investment between 2016 and 2025.

In Africa, the energy transition is expanding toward integrated infrastructure. A new R3.89 billion clean-infrastructure fund has been established to target solar and energy-storage projects across Africa and the Indian Ocean islands, aiming to address grid instability through transmission, water, and gas assets.

Market analysts have identified several drivers necessary to sustain this sector growth, including the enforcement of renewable portfolio standards, the implementation of carbon taxes or cap-and-trade systems, and rising fossil fuel prices. Additionally, certain infrastructure and utility companies are seeing increased market activity within the clean-energy sector.