The planned expansion of the BRICS bloc, through the addition of new members that include Saudi Arabia, will transform the group into a global leader in renewable energy in the coming decades, says Rystad Energy.
Rystad is referring to the expansion of the bloc comprising, Brazil, Russia, India, China and South Africa, with the addition of United Arab Emirates (UAE), Egypt, Ethiopia and Argentina, along with Saudi Arabia.
These new members will join the BRICs group of Brazil, Russia, India, China and South Africa in January 2024.
As the transition to cleaner technology accelerates, the alliance is projected to derive over 80% of its power from renewable sources by 2050, with total capacity reaching 11TW, more than double the combined 4.5TW expected in the Group of Seven (G7) nations Canada, France, Germany, Italy, Japan, the UK and the US.
Renewable energy is rapidly gaining prominence as costs decline, making it an increasingly attractive prospect for investors in the BRICS+ nations.
This appeal is reinforced by the abundant natural resources and affordable labour in most member countries.
Despite rapid economic growth, BRICS+ nations face a challenge in reducing emissions due to their heavy reliance on fossil fuels.
In the G7 nations, the early adoption of green technologies and policies has seen their emissions decline.
Both groups are setting ambitious climate targets, underscoring the pivotal role sustainable energy will play in the global energy transition.
“The BRICS+ alliance is fundamentally reshaping the global energy landscape, challenging established paradigms and committing to ambitious sustainability targets.
“As this emerging superpower’s economies expand and energy demands continue to evolve, ensuring a stable and secure energy supply will become paramount.
“This provides an opportunity to directly shift towards advanced sustainable energy infrastructure rather than relying on outdated frameworks” said Lars Nitter Havro, Senior Analyst, Rystad Energy.