Published on: January 21, 2025 / Update from: January 21, 2025 - Author: Konrad Wolfenstein
China, USA, Europe & Co. - The industrialized nations are driving the expansion of renewable energies worldwide in such different ways - Image: Xpert.Digital
Energy transition in global comparison: Why some countries are moving ahead in the expansion of renewable energies - A background analysis
Renewable energies worldwide: A comprehensive look at successes, strategies and challenges
The share of renewable energies in the global energy and electricity mix has been increasing continuously for years and has become a key issue for many countries in order to contain climate change, reduce dependence on fossil fuels and secure long-term stable energy supplies. This comprehensive treatise examines in detail the developments, strategies and goals of various countries with regard to the expansion of renewable energies. The focus is on China, the USA, Japan and Europe, including specific consideration of individual European countries such as Germany, France, Spain and Italy. In addition, central factors that are responsible for the strong differences in the shares of renewable energies are explained in detail and an outlook on future perspectives is given. This text is intended not only to trace current developments, but also to show which challenges and opportunities are associated with the expansion of renewable energies.
The present analysis is based on generally accepted facts and tendencies, without referring to specific sources or footnotes. The aim is to provide an easy-to-understand, coherent presentation that at the same time raises awareness of the complexity of the global transition to renewable energies. It’s not just the electricity sector that plays a role. Aspects of the heating and transport sectors, technological advances in areas such as green hydrogen and storage technologies as well as political, economic and social conditions are also taken into account.
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Basics and methodology
A meaningful discussion of the topic of renewable energies usually begins with thorough data collection and a comparison of country- or region-specific key figures. The percentage share of renewable energies in the overall energy or electricity mix is often examined in order to be able to quantify the progress of individual countries. It is important to differentiate between different aspects: gross electricity generation, gross electricity consumption and total energy consumption (i.e. not just electricity, but also heat and fuel) can each have different proportions. In addition, it may be that countries that achieve a high proportion of the electricity mix from renewable sources are still more dependent on fossil energies in the transport or heating sectors.
In specific countries where hydropower traditionally plays a major role, the share of renewable energies in the electricity mix can be above average. Countries with highly developed nuclear energy can, in turn, have a lower overall CO₂ balance in the electricity sector, but also have less incentive to massively expand wind or solar energy as long as large numbers of nuclear power plants are online. It also plays a role whether a state is geographically favored, such as regions with high solar radiation or strong, constant winds. “We are at a turning point where geopolitical interests, climate protection and economic development converge,” say political reports that emphasize the rapid transformation of the energy industry.
This detailed review summarizes the most important findings on the global comparison of renewable energies. This is followed by country-specific insights that show where trendsetters and laggards stand in the global race for a clean energy future.
China and its role as a pioneer
In recent years, China has become a global leader in the expansion of renewable energies. This is due, among other things, to the enormous demand for energy due to the country's strong economic growth and industrialization. “China invests in green technologies like no other country,” is what Chinese government officials like to say when they summarize the national investment programs for wind and solar energy. The expansion is happening impressively quickly and on a scale that is unparalleled anywhere in the world.
Wind power and solar energy in particular are at the center of China's strategy. China now has the largest installed capacity for both technologies and is also massively expanding hydropower capacities. The background is the effort to reduce coal consumption, which has contributed to air pollution in large cities such as Beijing, Shanghai and Guangzhou in recent decades. Although the extraction and combustion of fossil fuels still make up a large part of China's energy supply, the share of renewable energy in the country's electricity generation has continued to rise.
In addition to electricity generation, the country has set itself ambitious goals to advance renewable energies in other sectors. Projects to integrate green hydrogen are being planned in order to decarbonize industrial processes and, in the future, even parts of the transport sector. At the same time, China is expanding its production capacity for solar cells and wind turbines to such an extent that it can not only cover its own needs, but also assume a dominant position in global trade. The government is following a clear course: “Our aim is to make China the global hub for climate-friendly innovations.” This official statement shows the double benefit for China: its own emissions should be reduced and economic opportunities in the internationally growing market for renewable energies are used.
The USA on the way to becoming a green energy nation?
The United States of America is historically one of the leading industrial nations whose energy production has long relied heavily on oil, natural gas and coal. In recent years, however, there has been a noticeable structural change: individual states such as California, Texas, Iowa and New York are making targeted efforts to expand wind and solar energy and have enacted some ambitious regulatory laws. Fossil fuels still play a large role in the country's electricity mix, but the share of renewable sources has steadily increased. The landscape in some regions is changing visibly, for example due to extensive wind farms in Texas or increasingly numerous solar systems in Californian desert areas and on city roofs.
However, with the new US President, it is uncertain whether this trend will continue unabated. Observers point out that a change in strategy in the White House could slow down or even stop the progress made so far in the field of renewable energy. The previously stated intention was to promote research and development in order to modernize the energy sector and make the highly fragmented and outdated power grid fit for variable renewable energies. But future government policy could be more focused on conservative energy sources and immediate economic interests and thus slow down new projects rather than advance them.
Energy storage is an important aspect of the transformation: They are intended to compensate for fluctuations in wind and solar yield and thus stabilize the grid. In addition, hydrogen is increasingly coming into focus as a key technology. “Green hydrogen” represents a way to make emission-free electricity usable in sectors that have previously been heavily dependent on fossil fuels and thus reduce CO₂ emissions. However, the extent to which this potential can be exploited under the new leadership in the White House remains to be seen.
Many municipalities, states and companies are likely to continue on this path, precisely because they expect long-term competitive advantages through renewable energy. However, it is questionable whether all federal programs will be available to the same extent in the future and whether tax incentives or funding will continue to support the transformation on a large scale. Despite all the progress made so far, developments on the American energy market are apparently being put to the test again.
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Japan: Between renewable energies and nuclear power
Japan was forced to make fundamental energy policy changes after the Fukushima nuclear disaster in 2011. Public skepticism about nuclear energy grew sharply, while at the same time the safety of existing reactors was examined and shut down in some places. “The Fukushima disaster raised our awareness of alternative energies,” was a frequently expressed guiding principle in the years that followed. In practice, the country has now seen a significant boost in solar and wind power projects, supported by government support programs.
However, there has not been a complete phase-out of nuclear energy. Instead, Japan is trying to achieve a more balanced energy mix. Renewable energy is to be expanded significantly, while a certain proportion of nuclear power plants will remain online to reduce concerns about energy shortages and possible import dependencies. Technological advances in solar energy are significant in Japan, as the country has a highly developed industry that produces and continuously develops high-performance PV systems. At the same time, the motto applies: “Every kilowatt of energy efficiency saves us fossil fuels and emissions.” Accordingly, in addition to the expansion of renewable energies, the Japanese government is also pushing for strict benchmarks for energy efficiency in industry and commerce.
The complexity of Japanese energy policy is reflected in the fact that parallel efforts are being made to manage the integration of renewable energies into a widespread island network. Unlike large, contiguous countries, Japan has numerous individual power grids, some of which have different historical structures. New concepts for grid stability, energy storage and load management are therefore critical in order to safely integrate high solar and wind shares.
Europe: A continent in the energy transition
For many years, Europe has played a pioneering role when it comes to expanding renewable energies and implementing binding climate targets. The European Union has formulated the political goal of gradually increasing the share of renewable energy and is promoting common strategies, standards and support mechanisms for its member countries. “We want to be a climate pioneer and create the framework conditions to be climate neutral by 2050,” is an objective often heard in EU documents.
However, the differences within Europe are considerable. Some states rely heavily on hydropower, others on wind or solar. The role of nuclear energy also varies: France, for example, generates much of its electricity from nuclear power, while countries like Germany are beginning to gradually move away from this technology. The continental average share of renewable energies is constantly increasing, but is still a long way from replacing all fossil fuels. Furthermore, there is still a long way to go to achieve a largely decarbonized heating and mobility infrastructure.
The EU is constantly working on new guidelines, for example to speed up approval processes for solar and wind farms and to set specific expansion goals for the member states. Central building blocks are emissions trading and CO₂ pricing, which make fossil fuels more expensive and thus help renewable energies become more competitive.
Germany: pioneer and driver of innovation
Germany is often the best-known example of a comprehensive energy transition in Europe. Since the introduction of the Renewable Energy Act, wind power, solar energy and biomass have been massively expanded. “The EEG triggered a revolution in the energy sector,” was a common narrative in political debates in the 2000s and 2010s. At the same time, Germany repeatedly increased its expansion targets and was not deterred by setbacks and debates about funding costs. The expansion in Germany has promoted a high pace of innovation: never before has there been as much engineering and research activity in the field of renewable energy technologies as since the beginning of the energy transition.
A considerable proportion of the German electricity mix now comes from renewable sources. More and more photovoltaic systems are decorating house roofs, fields or even former industrial areas. Onshore and offshore wind farms generate large amounts of clean electricity, particularly in the north and east of the country. However, the question of the network infrastructure remains important: Since wind blows particularly strongly in coastal areas, while the greatest electricity demand is in the southern, industrial regions, the network must be strengthened towards the south.
New technologies and sectors are increasingly coming into focus: “We need a massive expansion in the transport and heating sectors, otherwise we will not achieve the climate goals,” say some German environmental organizations. In addition, the role of green hydrogen as a storage and transport medium is rated highly. The project to produce hydrogen through electrolysis processes using green electricity and distribute it via pipelines or admixtures into the natural gas network could ensure important emission reductions in industry, ships, heavy-duty transport and other areas in the medium term.
France: Nuclear energy versus renewables
France is traditionally characterized by a strong anchoring of nuclear power in the energy mix. Most of the country's nuclear power plants were built in the 1970s and 1980s to strengthen national energy independence. Today, France is striving not to abandon this path completely, but to integrate more renewable energy. “We believe that nuclear power and renewable energy go hand in hand,” according to summaries from French energy authorities.
The share of renewable energy in the French electricity mix has increased in recent years, with hydropower providing a significant share thanks to geographical conditions. Solar and wind energy have also become more important. At the same time, extensive programs are being prepared to promote the energy-efficient renovation of buildings so that the heat requirement falls and fossil fuels are reduced. France wants to consistently promote the expansion of renewable energies by 2030, although nuclear energy will always remain the stabilizing basis.
One of the reasons for this strategy is the favorable carbon footprint of nuclear power, although there is debate about whether the risks and costs of long-term operation of aging reactors are appropriate. Politically speaking, due to the long history of nuclear power in France, social support for this question is much higher than in Germany or Austria, for example. Nevertheless, the French government is working on building large wind and solar parks and reducing bureaucratic hurdles during expansion.
Spain: Sun, wind and ambitious goals
Spain is one of Europe's pioneers when it comes to solar energy, which is mainly due to its excellent climatic conditions. “We have one of the largest solar potentials in Europe and we want to make optimal use of it,” emphasize Spanish energy authorities. At the same time, large wind farms have been built in recent years, especially in regions with strong winds. As a result, Spain has a high proportion of renewable energies in electricity generation compared to other European countries.
In addition to electricity production, the country is increasingly paying attention to the heat sector. Heat pumps and solar thermal systems are increasingly being used there, especially for hot water and heating support in residential buildings. In the transport sector, the plans for the coming years include major investments in electromobility, rail and bus infrastructure. Beyond this sector coupling, Spain is pursuing strategic energy efficiency plans to reduce overall energy consumption per capita.
In its action plans, Spain's government often emphasizes the importance of a socially acceptable transformation: "The energy transition must leave no one behind." Therefore, when expanding renewable energies, attention is paid to providing economic stimulus in structurally weak regions, creating jobs in manufacturing and assembly, and building regional value chains.
Italy: Diverse forms of renewable energy
Italy has been relying on hydropower for years and has a number of power plants in the Alpine north and other mountainous regions that cover part of the national electricity supply. Wind and solar are also playing an increasingly important role: solar systems are increasingly being used in the sunny south and on the islands, while wind turbines are being used in mountain ranges and on the coast. “Our country has extraordinary potential in all forms of renewable energy,” Italian energy politicians regularly emphasize.
In addition to these well-known forms, Italy has additional focuses such as geothermal energy. In some areas of the country, particularly in Tuscany, underground heat from volcanically active zones is used to generate electricity and use heat. There are also the first projects testing tidal power or wave energy off the coast of Italy. Italy is also investing in energy-efficient building renovation programs and offering incentives for private households to invest in solar panels, heat pumps or other efficient systems. This creates a diverse portfolio of renewable forms of energy that is intended to reduce fossil consumption and increase energy security in the long term.
Factors explaining differences between countries
The differences mentioned above in the share of renewable energies and in the speed of their expansion can be attributed to various variables. A central factor is geographical conditions. Countries with reliable and strong winds, abundant solar radiation or large hydropower potential naturally benefit from lower costs and easier project implementation. Other factors are political in nature: governments that define ambitious funding models, feed-in tariffs or strict requirements for fossil energies are creating an environment in which renewable sources can grow more strongly.
Economic conditions are also important: If countries can build a strong export economy around renewable technologies - for example through the production of wind turbines, solar modules or battery storage - an additional driver for expansion arises. “The market for green technologies is growing rapidly, and we want to consolidate our role in it,” is often the saying in countries trying to position themselves as new industrial nations for cleaner energy. Social acceptance should not be underestimated either. Whether there are protests against wind turbines on land or solar systems on large agricultural areas, progress in individual regions can be significantly delayed.
Technological innovations also play an important role: batteries, pumped storage plants, hydrogen electrolyzers and other forms of storage are constantly being developed, making renewable energies more flexible to use. Furthermore, the transport and heating sectors in many countries still rely on fossil fuels. Only when electricity from renewable sources is made usable for these sectors can the energy transition be fully successful. “We have to link all sectors together so that the energy transition turns from individual measures into a network of smart solutions,” is an often-heard appeal from experts who call for an integrated approach.
National and regional goals
Many countries formulate official expansion targets for renewable energies, which are continually updated over time. China, for example, wants to steadily increase the share of renewable energies in its electricity mix and replace a large part of its fossil fuel capacity by the middle of the century. The USA has similar aspirations and relies heavily on stimuli that make the green transition more attractive in the form of tax benefits and subsidies. Japan is focusing on a balance between expanded renewables and a continued but smaller number of nuclear power plants in order to guarantee security of supply.
In Europe, the member states have committed themselves to achieving a significantly higher proportion of renewable energy by 2030 as part of the EU climate strategy. Some countries, such as Austria or Denmark, are so ambitious in their national policies that they are sometimes heading towards a share of almost 100 percent in the electricity sector. Germany has defined various intermediate steps to achieve annually increasing expansion targets, while France is focusing on a combination of renewable energies and modern nuclear energy. Spain and Italy link their expansion plans closely to questions of energy efficiency in order to reduce energy consumption and promote the switch to e-mobility.
All of these goals are closely linked to climate policy. “We must not lose sight of climate change,” is often emphasized, because the expansion of renewable energies is a central means of reducing greenhouse gas emissions. Many countries are now formulating this priority in their national energy and climate plans in order to define the path to a climate-neutral economy over several decades.
Increasing importance of new technologies
An exciting development in the context of renewable energy is the growing importance of innovations that go beyond wind and solar. Green hydrogen, produced from renewable electricity using electrolysis, can serve as a long-term replacement for fossil fuels, especially in areas that are difficult to electrify. Examples of this are heavy transport, shipping or certain industrial processes. The charm of this technology is that hydrogen can be stored, transported and, in the future, used in fuel cells, so that a large degree of decoupling from local production sites is achieved.
At the same time, new storage systems such as large batteries represent an opportunity to compensate for production peaks in wind and solar. In this way, load peaks in networks can be cushioned and dark lulls can be bridged. The issue of storage capacity plays a crucial role, particularly in regions with fluctuating feed-in. Some countries are also investing in research into alternative technologies such as tidal, wave or osmosis power plants, which have so far only been used in pilot projects. “The next generation of clean energy sources is waiting to be developed,” say research institutes that receive subsidies for their projects.
Many countries lack a suitable network infrastructure
Despite the overall positive development, challenges cannot be dismissed. Many countries lack a suitable grid infrastructure that ensures the transport of large amounts of renewable electricity between regions. Planning and approval of new routes often encounter acceptance problems among the population. Many citizens fear interference with the landscape or are concerned about environmental consequences. Financial costs also remain an issue: Although the prices for solar modules and wind turbines have tended to fall, expansion remains capital-intensive. In order to manage the investments, support mechanisms are often required, which in turn leads to debates about electricity prices and social justice.
At the international level, the geopolitical situation should not be underestimated. The rapid expansion of renewable energies can reduce the dependence on oil and gas imports, but on the other hand, new dependencies are growing, for example on raw materials such as lithium, cobalt or rare earths, which are essential for battery and solar technologies. “The energy transition requires a new look at global supply chains,” are the warnings from economics and trade ministries, which are pushing for strategic partnerships and recycling concepts. At the same time, the switch to clean energy sources creates potential for economic growth, technological innovation and new jobs, especially in crafts, research and manufacturing.
The global trend towards renewable energies is unmistakable
China, Japan and Europe are all investing heavily in wind power, solar energy and other renewable technologies. The differences in the actual proportions achieved are sometimes considerable, due to geographical, political, economic and social factors. While China is using gigantic projects to show how quickly an industrial nation can advance the expansion of renewable energies, the USA is increasingly relying on a combination of tax incentives, research and the entrepreneurial pioneering spirit of individual states. Japan is trying to find a balance between renewable energies and rationally considered use of nuclear power in order to deal with the consequences of the Fukushima disaster without endangering security of supply. In Europe, the member states develop common goals and strategies, but pursue their own paths due to their different starting points. Germany is known for its determined expansion of wind and solar energy, France is sticking to nuclear energy while integrating more renewables, Spain benefits from abundant sun and wind, Italy from its geographical diversity and potential geothermal energy.
Everywhere, ambitious climate protection goals and far-reaching plans for the future are linked to the expansion of renewable energies. Grid modernization, storage technologies, green hydrogen and more efficient electricity applications in transport and heating are just a few examples of how the sectors can be more closely interlinked. At the same time, it is crucial to ensure social acceptance and political stability. Acceptance problems, cost debates, supply chain bottlenecks and the question of securing base load capability through flexible reserve capacities concern almost all nations that are striving for a comprehensive change in their energy systems.
Nevertheless, it is noticeable how the momentum is shifting towards renewable technologies. “There is no going back to the old energy system,” say industry experts, who emphasize the increasing competitiveness of green energies. What is clear is that in many regions the pure production costs for wind and solar power are already competitive. Future innovations will further help develop even more cost-effective, efficient and intelligent solutions.
International cooperation plays a central role. Since climate change knows no borders, the exchange of experiences regarding political framework conditions, technical concepts and social participation formats is valuable. Last but not least, global events such as geopolitical tensions show that energy supply security is an important factor for the stability of entire economies and societies. Renewable energies can enable independence and predictable cost structures in the long term, provided the necessary infrastructure - from power lines to hydrogen pipelines - is implemented quickly.
The result is that all countries and regions examined want to benefit from a growing share of renewable energies. The strategies pursued in each case are diverse, adapt to national requirements and lead to different expansion speeds. The insight that fossil fuels are finite and harmful to the climate is a common denominator that is increasingly uniting energy policies. Numerous forecasts suggest that this trend will only increase in the coming decades. New, groundbreaking technologies, investment offensives in green infrastructure and political measures for more climate protection will work together to accelerate progress.
With this, this treatise comes to an end. In summary, we see a world in energy transition: China is advancing its economic and technological influence in the field of renewable energies, the USA is focusing on innovation and federal dynamism, Japan is mastering the balancing act between nuclear power and alternative energies, and Europe is promoting collaborative change with different national ones focal points. It remains an exciting challenge to see how the individual developments will fit together to create a long-term, sustainable and globally balanced energy system. But one thing seems certain: renewable energies will continue to gain in importance and will permanently change the way we generate and consume energy worldwide.
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