GREEN ENERGY

The green energy sector in BRICS countries offers transformative potential for international corporations, fueled by growing climate commitments, energy security concerns, and a need to diversify away from fossil fuels. Solar, wind, hydro, and emerging technologies like green hydrogen are central to national energy agendas. However, this opportunity is tempered by structural risks including weak regulatory enforcement, politicized approval processes, grid unreliability, and inconsistent subsidy frameworks. Many BRICS governments promote green energy through ambitious targets, but lack the institutional and financial stability to ensure predictable implementation—making long-term investment decisions precarious.

In the past five years, results have been uneven. China has emerged as a global leader in renewable capacity, particularly solar and wind, but foreign firms face limited market access due to state-dominated supply chains and opaque regulatory practices. India has made strong gains in solar deployment, backed by government tenders, though land acquisition disputes and delayed payments from state utilities have hindered investor confidence. Brazil's wind and solar sectors have attracted foreign capital, especially in the northeast, though transmission constraints and currency volatility present ongoing challenges. South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) initially showed promise but has been slowed by governance issues and Eskom’s financial instability. Russia, by contrast, has remained largely absent from global green energy momentum due to state priorities and sanctions following the Ukraine war.

Foreign corporations must also navigate a volatile intersection of environmental ambition and political resistance. Green energy projects often face pushback from entrenched fossil fuel interests, social opposition over land and water use, and bureaucratic fragmentation. Moreover, ESG standards, supply chain transparency, and carbon credit mechanisms are often underdeveloped or manipulated. For international investors, managing both climate opportunity and political-execution risk is key to unlocking BRICS’ green energy potential.