Contrasting Energy Landscapes: Low-Income Nations Move Toward Renewables While High-Income Nations Diversify
Two sets of data from the Atlas of Sustainable Development Goals 2023 offer a striking snapshot of how energy generation differs between low-income and high-income countries. While Ethiopia, Rwanda, and Uganda—classified as low-income nations—are rapidly expanding their electricity generation capacity by leaning heavily on renewable resources, high-income nations like the United States, Germany, and Japan show much larger but more diversified power mixes with entrenched fossil-fuel usage.
Renewable Expansion in Low-Income Countries
In Ethiopia, total electricity generation has surged to nearly 20,000 gigawatt-hours (GWh) per year by 2020, driven overwhelmingly by hydropower, with smaller but growing contributions from wind and other renewable sources. Fossil fuels, coal, and gas play virtually no role in Ethiopia’s electricity mix, positioning the country as a potential leader in clean-energy development.
Rwanda, though on a much smaller scale—around 1,000 GWh per year—displays a similar pattern. Hydropower dominates, supplemented by bioenergy and a modest but noticeable rise in solar power. Fossil fuels still appear in the mix but remain limited compared to renewables.
Uganda’s generation, now approaching 5,000 GWh per year, shows an increasing share of renewables too. Like its neighbors, Uganda relies primarily on hydroelectricity, complemented by bioenergy and a tiny but growing slice of solar. Fossil fuels appear to be declining in importance, suggesting a steady transition.
This heavy reliance on renewable energy reflects both opportunity and necessity. These countries often lack entrenched fossil fuel infrastructure, making it easier to leapfrog into cleaner technologies. At the same time, investment in renewables offers a path to energy security and economic growth without the high emissions of older energy systems.
High-Income Countries’ Mixed Energy Systems
In contrast, the United States, Germany, and Japan each generate vastly larger amounts of electricity—millions of GWh per year—but with a much more complex energy mix. Fossil fuels like coal, oil, and gas still occupy significant portions of their generation profiles. Although renewables such as wind, solar, and bioenergy have expanded since 2000, they remain layered on top of large existing fossil and nuclear capacity rather than replacing it outright.
Germany stands out for its aggressive renewable push, particularly wind and solar, but still carries substantial fossil-fuel generation. Japan maintains a mix of fossil fuels, renewables, and a reduced but present nuclear share since 2011. The United States also shows gradual renewable growth but still relies heavily on gas and coal.
A Tale of Two Energy Futures
These two contrasting datasets highlight a global energy crossroads. Low-income nations have an opportunity to build clean grids from the ground up, bypassing the carbon-heavy systems that now challenge high-income countries. Meanwhile, wealthier nations face the harder task of decarbonizing enormous, long-established fossil-based infrastructures.
If international finance and technology transfers can support these emerging economies, their renewable-heavy models could become templates for sustainable growth. At the same time, high-income countries must accelerate fossil fuel phase-outs to match their renewable investments if global climate targets are to be met.
