Renewable energy is derived from natural sources and which can be replenished at a faster rate than they are consumed. Common examples include wind, sunlight, water, and geothermal heat.
This energy is important because it emits almost no greenhouse gases or air pollution. It’s safer for human health and doesn’t contribute to climate change because it doesn’t produce greenhouse gases.
With such clear benefits, countries worldwide have been attempting to switch to renewable energy as fossil fuels deplete.
This article examines countries leading the swift from fossil fuels by maximizing renewable energy for their citizens.
Why Some Countries Lead in Renewable Energy
Renewable energy countries lead in their transition to renewable energy through four key elements: government policies, natural resources, investments, and goals.
Government Policies
A 2022 research study found that successful countries in clean energy had supportive policymakers. These policies helped ease resistance to renewable energy costs from politicians and consumers.
Policies adopted in many European countries allow governments to fast-track technology installation. They don’t have to wait for the price to come down, unlike the United States, Canada, and Australia, which don’t have the same kind of protection for lobbyists.
Natural Resources
Another key factor is the availability of natural resources to produce renewables. Countries with a lot of sunshine or wind, like India, have an advantage in implementing solar or wind power. Countries like Norway or Canada that have large rivers can rely on hydroelectricity.
Investment in Technology and Innovation
Countries investing in new technologies continue developing renewable energy. Falling costs of renewable technologies over the past five to ten years also encourage this growth.
Investment can also lead to a country being known as an ecosystem for a particular renewable energy. For example Germany has invested in smart grid technology and China has prioritized wind turbine technology.
Public Environmental Goals
Many countries have set goals to reduce greenhouse gas emissions which has sparked a need to invest in renewable energy.
This could also manifest as subsidies or tax credits for policy support. Whatever it takes to get people interested in renewables.
Top Renewable Energy Leaders
According to the 2023 statistics put together by the International Renewable Energy Agency (IRENA) and the Climate Council, these are some of the top renewable energy leaders by country.
China
The largest producer of solar and wind power, China is both the largest carbon emitter and a leader in renewable energy.
The country hosts over half the world’s wind and solar capacity and built the massive Three Gorges Dam.
The dam’s reservoir is big enough that NASA says it might be slowing the Earth’s rotational spin by 0.06 microseconds per day.
Challenge: China has to balance energy demand and begin phasing out coal to reduce their emissions.
United States
From 1990 to 2023, the use of renewable energy doubled to 21% of the total utility-scale electricity in the country.
Wind power in Texas and Iowa, plus solar in California, helped the U.S. grow renewable energy to 42% by 2020.
Research into battery storage and offshore wind advancements have also allowed the country to grow as a leader in renewable energy technology and have a renewable energy capacity of around 388 gigawatts.
Challenges: Ongoing policy shifts and fossil fuel lobbying have meant that renewable energy isn’t always prioritized.
Brazil
Brazil has become a renewables powerhouse showing how renewable energy growth is sustainable and can reduce emissions. It’s being called an example of how to switch to renewable energy without sacrificing electricity demand.
In 2023, Brazil provided 89% of its power through renewable electricity, most of which was powered by the country’s hydropower producer, the Itaipu Dam. The hydroelectric dam sits on the border between Brazil and Paraguay and is the third-largest hydroelectric dam in the world.
Brazil also has a strong ethanol and biofuel industry and continues expanding its solar and wind power capabilities.
Challenge: Amazon deforestation may reduce river flow, impacting hydroelectric power generation.
Canada
The prominent source of renewable energy in Canada is hydropower.
Over 60% of electricity in Canada comes from hydroelectric sources in:
- Quebec
- British Columbia
- Manitoba.
The wind and solar energy sectors supplement hydropower thanks to a rapid expansion at sites in Ontario, Alberta, and Saskatchewan.
The Canadian government has sanctioned large sums of money for programs that can aid in meeting or exceeding renewable energy goals.
After promising over $200 million to expand commercially viable renewable energy sources, the country committed to becoming net-zero by 2050 and having phased coal out.
Challenges: The harsh winters and lower daylight hours can affect solar capacity requiring more money to be placed into battery storage options. Indigenous land concerns have also come up regarding the legality and ownership of hydroelectric power projects.
India
India has focused on solar energy, and its capacity has grown exponentially. The Bhadla Solar Park, located in the Thar Desert of Rajasthan, is India’s largest, with a capacity of 2,245 megawatts.
As the third-largest electricity consumer and the world’s third-largest producer of renewable energy, the Indian government has set strong targets for renewables.
India aims for net-zero emissions by 2070 after connecting 35 gigawatts of solar and wind energy capacity to its grid in March 2025.
Challenge: Deforestation and a lack of land availability for grid infrastructure have made it difficult for India to achieve its targets. As many citizens require forest for their livelihoods, calls have been made to focus on reforestation and then prioritize renewables.
In addition to that, the country also has to work on breaking its reliance on coal to continue moving towards using only renewable resources.
Germany
Germany instituted their energy transition policy (Energiewende) in 2022 which they called the biggest energy policy reform in decades.
The country already has a high percentage of electricity coming from renewables but the policy would bump that amount up to 80% by 2030 and 100% by 2035.
Challenge: Germany has to phase out both nuclear and coal at the same time to make way for renewable energy which could put a strain on the energy sector.
Sweden
Iin 2022, Sweden earned their green electricity certification which meant that more than 60% of their electricity came from renewable energy sources.
Aiming for 100% renewable electricity production by 2040, Sweden uses hydropower for electricity, bioenergy or biomass for heating and a growth in wind power as a supplementary form of electricity.
Its connections to Nordic and Baltic countries are helping to grow regional electricity trade.
Challenge: There is a rising wind turbine costs which makes switching grids from fossil fuels to renewables more difficult.
Iceland
Thanks to an abundance of geothermal energy on the island, Iceland was able to supply almost 100% of its electricity production using geothermal energy in 2015.
Today, geothermal power heats 90% of homes in the country and is among the world’s leading producers of geothermal energy.
The United Nations has suggested that Iceland’s model of using geothermal energy could become a model for the rest of the world.
Iceland aims to become carbon neutral by 2040 and greenhouse gas emissions by 55%.
Challenge: Transitioning transport and some industries to renewables will take time and could increase electricity requirements considerably.
Australia
Australia has been actively moving toward renewables, with over a third of its electricity now generated from renewable sources like solar, hydro, wind, and biomass.
The rise in rooftop solar installations (12.4% of the country’s total supply) has created a solar boom and is quickly pushing them towards a more sustainable future.
The country has set a target to phase out coal use by 2040.
Challenge: The country will have to invest substantially to set up new infrastructure that includes transmission lines and storage.
Africa
Africa is home to 60% of the best solar resources on earth but it only receives less than 5% of energy investments globally despite being a place that contributes almost nothing to carbon emissions each year.
The continent’s largest wind farm called the Lake Turkana Wind Power Project has a 310 MW capacity or enough to supply energy to over a million homes.
Challenge: Kenya faces financial challenges, including limitations in its grid infrastructure and balancing energy demand with a renewable supply.
The Future of Renewable Energy Countries & Leadership
The future of renewable energy is massive growth and attempting to meet the targets set decades earlier.
Technology has made that future more possible with a decreasing technology cost and competitive rates for selling renewable energy.
Batteries and smart grid modernization have enabled countries to become more efficient and eliminate some issues with insufficient sun in the case of solar or wind with wind power.
The future of renewable energy countries and their leadership is also international cooperation.
Thanks to the ambitious goals made in the 2015 Paris Agreement to address global warming and climate change, countries worldwide are setting their targets to become net zero or rely on only renewables.
Conclusion
The countries leading in renewable energy have prioritized renewables over fossil fuels. They’ve created incentives for those who use renewable energy and invested in switching over.
These methods have brought on challenges, but each year, more governments see these as temporary setbacks with the biggest rewards for fixing them.
The rise in renewable energy is also causing the job market to grow as more workers are needed to ensure safe, clean energy can be delivered to residents.
If you’re interested in a career in renewable energy, check out articles about renewable energy or search the job listings.
