This article will list the countries leading in renewable energy and explain their efforts toward a sustainable energy portfolio. If you want to skip the analysis of recent patterns in the global energy production horizon, read 5 Most Advanced Countries in Renewable Energy.
The shift toward renewable energy is driven by the need to address climate change and the increasing practicality of these energy technologies. This movement is fundamentally reshaping the global approach to energy and is yielding impressive results in advanced countries in renewable energy.
A noteworthy milestone in this transition is the commitment made by the G20 leaders, guided by the International Renewable Energy Agency (IRENA), to target a threefold increase in the world's renewable energy capacity by 2030. This objective is imperative in order to meet the rising energy demands of the global population while effectively addressing climate change. To achieve this goal, it is estimated that annual investments exceeding $4 trillion will be necessary until 2030.
The expansion of the renewable energy sector in environmentally-conscious countries is further accelerated by the ongoing global energy crisis. The International Energy Agency (IEA) predicts that the next five years will witness as much growth in renewable power as the preceding two decades combined. This surge is poised to make renewable energy the predominant source of global electricity generation, surpassing coal by early 2025.
Notably, according to the IEA's World Energy Outlook 2023, renewables could constitute nearly half of the global electricity mix by 2030, a significant increase from the current 30%. Additionally, the report projects that electric vehicles (EVs) are anticipated to represent half of all new car registrations in the United States by 2030, a substantial leap from the previous forecast of just 12% two years prior. Similarly, the European Union is expected to focus on sustainable heating solutions, with heat pump installations projected to achieve two-thirds of the required level for the Net Zero Emissions Scenario by the same year. China's evolving energy landscape is also noteworthy, with a substantial increase in the deployment of solar photovoltaic (PV) systems and offshore wind projects expected by 2030.
All these ongoing efforts and future plans underscore the growing prominence of renewable energy sources in the coming decades. However, the realization of this goal necessitates significant investments and infrastructural changes before the world's energy mix can transition away from fossil fuels.
Big Companies Expanding Their Renewable Energy Portfolio
NextEra Energy, Inc. (NYSE:NEE) is recognized as the leading producer of wind and solar energy. With a diverse energy portfolio encompassing wind, solar, and nuclear power, NextEra Energy, Inc. (NYSE:NEE) has ambitious plans to increase the country's solar power capacity by 3,184 megawatts. As of 2020, the company's energy production capacity stood at an impressive 55,000 megawatts, primarily sourced from renewable and clean energy.
A notable initiative by NextEra Energy, Inc. (NYSE:NEE) is the FPL SolarTogether project, which is aimed at establishing the largest community solar program in the United States. This project is set to enhance solar capacity in Florida, with intentions to introduce an additional 1,780 MW of universal solar capacity, potentially benefiting over 300,000 customers.
Dominion Energy Inc. (NYSE:D) is another prominent energy company distinguished for its innovation in green energy. Serving nearly 7 million customers, Dominion Energy (NYSE:D) boasts an impressive installed capacity of 27,100 megawatts. Notably, 3,100 megawatts of Dominion Energy (NYSE:D) 's total electricity production are derived from renewable sources such as solar and hydropower.
Let's now talk about the top renewable energy-producing countries!
15 Most Advanced Countries in Renewable Energy
15 Most Advanced Countries in Renewable Energy
Our Methodology
We determined the leading countries in green energy by analyzing their renewable energy generation (in terawatt-hours) from 2020 to 2022. This analysis was based on the 72nd edition of the Energy Institute's Statistical Review of World Energy, where we averaged the renewable energy production of the top countries over the last three years. Subsequently, the countries were ranked in ascending order based on their renewable energy output.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here)
As per our findings, here are the world leaders in clean energy:
15. Mexico
Average Annual Renewable Energy Generation: 119.4 terawatt-hours
Mexico ranks among the top renewable energy-producing countries due to its consistent investment in diversifying its energy portfolio. Notably, between 2012 and 2022, the country's renewable energy production increased by 15.5%.
Under the directives of its Energy Transition Law and General Climate Change Law, Mexico has set an ambitious goal to obtain 35% of its electricity from clean energy sources by 2024, as reported by the International Trade Administration. This target encompasses energy from both renewable sources and other efficient sources, such as nuclear energy and cogeneration. As of 2022, clean energy accounted for 31.2% of Mexico's electricity production. Furthermore, Mexico's clean energy capacity, primarily consisting of hydroelectric, wind, and solar photovoltaic systems, reached 31,369 MW in 2022.
Research conducted by the National Renewable Energy Laboratory (NREL) suggests that Mexico could achieve its 35% clean electricity goal by 2024 by increasing the contribution of solar energy from 4% to 9% and wind energy from 8% to 12%.
Average Annual Renewable Energy Generation: 120.3 terawatt-hours
Sweden is among the green energy pioneering countries and boasts the lowest reliance on fossil fuels among all member countries of the International Energy Agency (IEA). Despite its high per capita energy consumption, Sweden maintains relatively low carbon emissions, thanks to its heavy reliance on renewable energy sources. In 2022, more than 60% of the country's electricity was generated from renewables, primarily hydropower and bioenergy. Furthermore, Sweden's energy policies are closely aligned with its ambitious climate goals, including the target of achieving net-zero emissions by 2045. However, this objective remains challenging as the country's overall carbon emissions have remained stagnant since 2013.
13. Canada
Average Annual Renewable Energy Generation: 137.9 terawatt-hours
In 2022, wind power generated 37.5 terawatt-hours of renewable energy in Australia, while solar contributed 6 terawatt-hours, collectively marking an 8% annual increase. Canada's role in the global climate movement was evident at the 2023 UN Climate Change Conference, where it played a pivotal role in forging a groundbreaking agreement with ambitious targets. Domestically, Canada's commitment to renewable energy is exemplified by its $50 million investment in an Indigenous-led wind power initiative in Saskatchewan. This project combines clean energy production with Indigenous community empowerment and economic development.
However, Canada has been slower in adopting renewable sources like wind and solar power compared to other leading renewable energy-producing countries. To address this, private sector collaborations with corporations such as Microsoft Corporation (NASDAQ:MSFT) have paved the way for significant investments and innovations in renewable energy, carbon capture technologies, and decentralized energy systems. A key aspect of this collaboration is Microsoft Corporation (NASDAQ:MSFT) 's strategic partnership with Ontario Power Generation (OPG) to combat climate change and promote sustainable growth in Ontario. Microsoft Corporation (NASDAQ:MSFT) will purchase Clean Energy Credits (CECs) from OPG's carbon-free hydro and nuclear power sources, enabling it to power its global data centers with carbon-free energy around the clock. Furthermore, the revenue generated from the sale of these CECs will support investments in new clean generation in the province, contributing to Ontario's economic growth and electricity demand.
12. Australia
Average Annual Renewable Energy Generation: 162.9 terawatt-hours
Australia is poised to rank fourth among the most advanced countries in renewable energy by 2050, thanks to its unwavering commitment to sustainability. In recognition of Australia's efforts, the International Energy Agency (IEA) applauded the country in 2023 for its elevated climate and clean energy goals. Recent legislative actions, including the Climate Change Act of 2022, which aims to reduce emissions by 50% by 2030 and achieve net-zero emissions by 2050, along with its participation in the Global Methane Pledge, underscore Australia's dedication to transitioning to clean energy. Additionally, Australia actively contributes to international initiatives such as the Global Decarbonization Accelerator (GDA), with the aim of tripling its renewable energy generation by 2030. To reflect these environmental commitments, the Australian Federal Budget for 2023 has allocated substantial funding for renewable energy initiatives. This includes a significant $4 billion investment to establish Australia as a renewable energy leader as part of a broader governmental investment surpassing $40 billion.
11. Turkey
Average Annual Renewable Energy Generation: 165.6 terawatt-hours
Turkey is actively advancing in the field of renewable energy, and in a notable development, it has revised its 2023 goals within the framework of the Nationally Determined Contribution (NDC). This revision includes an ambitious target to reduce greenhouse gas emissions by 41% from 2012 levels by 2030, a significant increase from the earlier 21% reduction goal. This translates to an expected reduction of approximately 695 million tons of carbon dioxide emissions by 2030. Turkey's long-term vision also encompasses achieving net-zero emissions by 2053.
Particular attention is being directed towards the transportation sector, which accounted for approximately 16.6% of Turkey's total emissions in 2021. Recent developments have led to an installed capacity for renewable energy that exceeds 25,000 megawatts (MW). Specifically, there is 11,369 MW of installed wind turbine capacity and 8,062 MW of solar energy, as reported by the BP Statistical Review.
10. France
Average Annual Renewable Energy Generation: 172.1 terawatt-hours
In 2022, France generated 38 terawatt-hours from solar, 20.1 terawatt-hours from wind, and 9.8 terawatt-hours from other renewable sources. The country's current installed solar capacity stands at 17,149 megawatts, complemented by 21,120 megawatts of wind power capacity. As part of its sustainability goals, the French government has outlined a strategy to increase its renewable electricity capacity. Starting from 48.6 gigawatts in 2017, the goal is to raise this figure to 113 gigawatts by 2028.
9. Italy
Average Annual Renewable Energy Generation: 191.6 terawatt-hours
Italy has been actively shifting its energy sourcing strategy, notably reducing its reliance on Russian natural gas. By the end of 2022, this reliance had been significantly reduced, with Russian gas accounting for only about 3% of Italy's total gas imports, as reported by the IEA. Simultaneously, the Italian government is actively promoting the use of alternative fuels for vehicles.
As of late 2022, Italy's renewable energy capacity reached 58 GW, meeting over 32% of its electricity needs. Italy's commitment to bolstering renewable energy is evident in its National Resilience and Recovery Plan, which allocates €59 billion for renewable energy initiatives between 2021 and 2026. The goal is to increase the share of renewables in total electricity production to 72% by 2030 and to between 95% and 100% by 2050, in accordance with the International Trade Administration's guidelines.
Average Annual Renewable Energy Generation: 249.9 terawatt-hours
Spain is making significant strides in renewable energy, aiming to achieve 76 GW of solar capacity by 2030, including 19 GW dedicated to self-use. The country's updated energy and climate strategy surpasses its previous emissions reduction target, targeting a 32% decrease from 1990 levels. This comprehensive plan involves increasing total renewable energy generation to 160 GW, integrating 22 GW of energy storage, and expanding wind energy capacity to 62 GW. Additionally, Spain is prioritizing green hydrogen production, with a target of 11 GW using electrolyzers. Currently, the country has an installed wind turbine capacity of 29,308 megawatts and a photovoltaic power capacity of 20,518 megawatts, positioning it among the most advanced countries in renewable energy.
7. United Kingdom
Average Annual Renewable Energy Generation: 348.1 terawatt-hours
In 2022, the UK had an installed PV power capacity of 14,412 megawatts, reflecting a 4.4% increase from the previous year. Similarly, the country's wind turbine installed capacity reached 28,537 in 2022, marking a 10.9% growth compared to 2021. Currently, renewable sources account for 40% of the UK's electricity generation, positioning it among the leading countries in sustainable energy.
The United Kingdom is currently undergoing a dynamic transformation in its energy strategy, characterized by substantial investments in the North Sea's oil and gas sectors. A prime example of this is the Rosebank project, which entails an investment of approximately £8.1 billion ($8.8 billion).
The Rosebank oil and gas venture, led by Equinor UK, a subsidiary of Equinor ASA (NYSE:EQNR), represents a significant undertaking in the UK's offshore sector. Located about 130 kilometers west of the Shetland Islands, this project spans multiple blocks and operates at a depth of approximately 3,889 feet. Equinor ASA (NYSE:EQNR) holds an 80% stake in the field, with the remaining 20% owned by Ithaca Energy. Notably, Equinor acquired Chevron Corp (NYSE:CVX)'s 40% operating share in the project in 2019, making it a 40% owner. In 2023, Equinor acquired Suncor Energy UK Limited in an $850 million deal, which increased Equinor ASA (NYSE:EQNR) 's ownership to 80% in the Rosebank development project. The project is being executed in two distinct stages, with a strong emphasis on minimizing carbon emissions.
Financially, the Rosebank project represents a substantial investment of approximately £8.1 billion, with a significant portion, around £6.3 billion, projected to benefit UK-based businesses. Oil production is scheduled to commence in 2026-2027, with the first phase expected to yield over 300 million barrels of oil over its lifetime.
6. Japan
Average Annual Renewable Energy Generation: 374 terawatt-hours
In 2022, Japan's installed wind turbine capacity reached 4,577 megawatts, marking a 2.5% annual increase. Additionally, its photovoltaic capacity was an impressive 78,833 megawatts, representing a 6.3% annual growth. Japan has set ambitious goals to reduce greenhouse gas emissions by 46% by 2030 and achieve net-zero emissions by 2050. The country places a strong emphasis on improving energy efficiency, a domain in which it has historically excelled. Given its densely populated and mountainous terrain, Japan is also focused on optimizing existing energy technologies while accelerating the integration of renewables. In its long-term vision, Japan is at the forefront of energy innovation, particularly in offshore wind energy, with the goal of advancing and making floating wind turbines more cost-effective.
