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The global energy transition may be entering a new phase, one in which emerging economies are no longer simply importing solar panels but investing in the wider electricity infrastructure needed to transform their energy systems.
Since the beginning of 2024, countries across Asia, Africa, Latin America and parts of the Middle East have spent more than $235 billion on imported Chinese clean-energy and electrification technologies, according to data from energy think tank Ember published on October 19, 2026. The investment extends well beyond solar modules to transformers, switchgear, transmission cables, cooling equipment and electric vehicles.
The implications are significant. The Global South is not just adding renewable generation; it is building the infrastructure to electrify transport, meet rising cooling demand and expand access to reliable power. Yet the next phase could prove more complicated than the solar boom that helped set it in motion.
One of the most striking findings is the scale of investment in electricity networks. Emerging economies including India, Pakistan, the Philippines, Brazil, South Africa and Vietnam have spent $25.3 billion on imported Chinese grid equipment since 2024, exceeding the $23.8 billion spent on comparable equipment by the rest of the world.
Solar investment has followed a similar trajectory. The Global South has spent nearly $47 billion on Chinese photovoltaic systems since 2024, accounting for 55.4% of global spending on these products. Cheaper modules have enabled households and businesses to generate their own electricity, while grid upgrades can help utilities accommodate rising renewable generation and connect new demand.
The transition is also feeding into other sectors. Demand for air conditioning is increasing rapidly in urbanising economies, while electric vehicles are opening up a new source of electricity consumption. Emerging economies spent $73.2 billion on imported Chinese electric vehicles during January–August 2026, compared with $6 billion in 2023, according to the same analysis. Taken together, these developments suggest that the next phase of electrification will be about much more than generating cheap electricity. It will require networks capable of delivering it reliably, at the right time and in the right places.
One critical component, however, remains relatively underdeveloped: energy storage.
Developed economies accounted for 71% of spending on Chinese battery energy storage systems since 2024, leaving emerging economies with 29%. The gap is narrowing. Spending by emerging economies on these batteries rose from approximately $9 billion in January–August 2024 to $21 billion during the same months in 2026. The disparity matters because a solar-heavy electricity system cannot rely on generation alone. Without sufficient storage and flexible grids, surplus daytime electricity risks being curtailed, while evening demand can require expensive peaking generation or continued reliance on fossil fuels.
Battery costs are falling, improving the economics of combining storage with solar and wind. But the investment required for batteries, transmission and distribution infrastructure remains substantial, particularly for countries facing high borrowing costs and competing development priorities.
The challenge is therefore not simply to install more renewable capacity. It is to ensure that electricity generated cheaply during one part of the day can be delivered affordably when consumers need it.
Solar and storage are not the only technologies evolving in this market. Advances in next-generation geothermal energy could introduce another competitor for firm, low-carbon electricity.
Unlike solar power, geothermal can generate electricity around the clock, provided suitable underground heat resources are available. The International Energy Agency estimates that, with supportive policies and technological progress, next-generation geothermal costs could fall by 80% by 2035, reaching around $50/MWh. At that level, it could become highly competitive with solar and wind paired with battery storage.
This is a future cost projection, not evidence that geothermal is already cheaper than solar-plus-storage in every market. Development remains constrained by exploration risks, geology, permitting and long project lead times. Nevertheless, advances in drilling and techniques adapted from the oil and gas industry could expand the number of locations where geothermal becomes commercially viable.
For solar developers, manufacturers and storage providers, the significance is clear: the competition for future electricity investment will increasingly involve technologies that offer different combinations of cost, flexibility and reliability. Solar’s expansion remains compelling, but it cannot assume that every additional unit of demand will be met by solar and batteries alone.
Nuclear power is another part of this changing landscape. While established nuclear economies are considering reactor extensions and new builds, countries entering the sector are adding a further option for meeting large-scale electricity demand with low operational carbon emissions.
Bangladesh’s Rooppur nuclear power plant offers a timely example. Its first 1,200 MW unit achieved first criticality on October 11, 2026, following regulatory approval three days earlier. The Russian-assisted project comprises two units with a combined planned capacity of 2,400 MW. Bangladesh is targeting an initial contribution to the national grid in November, subject to the successful completion of testing, safety checks etc.
For Bangladesh, Rooppur represents an attempt to diversify electricity supply and add a substantial source of firm generation. For the wider region, it illustrates how the energy choices available to emerging economies are expanding beyond imported fossil fuels and rapidly deployed renewables.
Nuclear projects, however, bring their own challenges, including large upfront investment, long development timelines, complex regulatory requirements and the need for specialised operating capabilities. They are not a direct substitute for distributed solar in every setting. Rather, they occupy a different place in the mix, potentially providing large volumes of dependable electricity alongside variable renewables.
The Global South’s energy transition is becoming a system-wide transformation. Solar panels may have helped initiate the shift, but batteries, stronger grids and a wider range of generation technologies will determine how far it progresses.
For countries where unreliable electricity and expensive diesel generation have encouraged distributed solar adoption, the opportunity remains considerable. Better grids and storage could allow individual installations to become part of more integrated electricity systems. At the same time, geothermal and nuclear may offer alternatives for meeting demand that requires dependable, around-the-clock supply.
The risks are equally real. Import spending should not be confused with installed capacity, and equipment purchases alone cannot guarantee reliable electricity. Financing costs, project execution, regulatory frameworks, grid constraints and technology choices will all shape the outcome.
As the Global South invests in electrification at scale, the winners may be those that can integrate solar with storage, stronger networks and complementary sources of firm generation. The solar boom created the opening. The broader electricity system will determine what comes next.
We are India’s leading B2B media house, reporting full-time on solar energy, wind, battery storage, solar inverters, and electric vehicle (EV)
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