Developing Countries Could Add $12.5Bn to Their Economies with Accelerated Wind Deployment, Says Report

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A new report from the Global Wind Energy Council (GWEC) has found that wind energy could be a crucial tool for developing countries looking to grow their economies while also meeting climate goals. The report, “Capturing Economic Opportunities from Wind Power in Developing Economies,” identifies Argentina, Colombia, Egypt, Indonesia, and Morocco as countries with significant untapped wind energy resources that could unlock rapid economic growth under green recovery measures.

According to the report, in just five years, these five developing countries could add 3.5 GW of capacity, an extra $12.5 billion for their economies, and create 130,000 full-time equivalent work-years. The report also suggests that these countries could enjoy a virtuous cycle that continues to deliver benefits after this initial period.

The report recommends that policymakers in developing countries take proactive steps to accelerate wind project deployment, such as making clear policy commitments, developing infrastructure, and streamlining permitting rules. By doing so, they could unlock renewable potential and large amounts of investment in their countries, which would lead to new jobs, new high-tech manufacturing, and accelerated growth for their economies.

Ben Backwell, CEO of GWEC, said, “The energy transition is an opportunity for countries in every region in the world to rebuild and grow their economies on a foundation of clean energy, green jobs, and secure power. This report sets out how making clear policy commitments, developing infrastructure, and streamlining permitting rules will unlock renewable potential and large amounts of investment in these five countries.”

The report highlights the potential economic benefits of accelerating wind project deployment in each of the five countries. For example, Argentina could see a 57% increase in full-time equivalent jobs and a 45% upside to the economy with a 31% increase in new wind installations between 2023 and 2027. Meanwhile, Colombia increasing wind installations by 44% could deliver almost 150,000 new full-time equivalent jobs and an extra $3 billion gross value added to the economy – a 65% increase.

Mike Blanch, Associate Director at BVG Associates, said, “This analysis shows the considerable ongoing benefits arising from accelerating wind project deployment in Argentina, Colombia, Egypt, Indonesia, and Morocco. On offer is a pathway for greater economic growth while simultaneously improving energy security and resilience.”

In conclusion, the report suggests that accelerating wind deployment can be a key tool for developing countries looking to grow their economy and deliver on climate goals. By doing so, they could create a virtuous cycle of economic growth, job creation, and renewable energy development.