BRICS energy divide widens as renewable shift outpaces new members’ fossil reliance. (Photo: iStock)
A new report released on April 29 by U.S.-based think tank Global Energy Monitor (GEM) highlights a notable shift in the BRICS nations’ energy mix, driven by rapid growth in renewable energy in Brazil, India, and China. For the first time, fossil fuels now account for less than half of the bloc’s total electricity generation.
However, the report also notes that China is contradicting its earlier commitments by continuing to finance and build coal-fired power plants abroad—primarily in Indonesia.
Energy development varies across BRICS
The BRICS alliance has grown significantly, from its original members (Brazil, Russia, India, China) to now include Indonesia as its 10th full member, alongside nine additional partner countries. Together, these countries account for more than half of global carbon emissions and roughly a quarter of the global economy.
According to GEM, the nine BRICS countries now derive the majority of their electricity from non-fossil sources in 2024—a turning point in the bloc’s energy history. This shift is largely due to unprecedented growth in solar and wind power in Brazil, India, and China.
In contrast, most of the new BRICS members still rely heavily on coal-fired power. Seven out of the 10 new members are actively expanding oil and gas-based generation, despite having outlined plans for non-fossil investments. Actual implementation has been slow, with many of their utility-scale wind or solar projects still under 0.3 GW in installed capacity.
Under the influence of China’s Belt and Road Initiative (BRI), Chinese state-owned enterprises have become deeply embedded in the energy sectors of these newer BRICS countries, covering technology, procurement, construction, and financing. China’s participation is most dominant in hydropower and coal power projects, where it is involved in 93% and 88% of developments, respectively.
The BRICS crossed an inflection point in 2024, fossil fuels no longer account for the majority of their total power capacity. (Chart: GEM)
China drives coal power expansion in Indonesia
Indonesia has become the top destination for BRI energy investments, particularly in captive coal plants designed to meet the electricity demands of its growing metals and mineral processing industry. China has emerged as the primary backer of Indonesia’s coal expansion, with Chinese financial and construction support behind 7.7 GW of new coal capacity—most of which supplies nickel smelters.
GEM’s report underscores a contradiction: China pledged in 2021 to stop financing overseas coal projects, yet current trends suggest that loopholes have allowed continued investment. At the same time, Chinese public and private sectors have played a major role in accelerating global investment in solar, wind, batteries, and electric vehicles—benefiting many of the newer BRICS members.
GEM also released a separate report noting that 2025 could be a decisive year for natural gas development in Southeast Asia, with 13 projects expected to reach final investment decisions (FIDs)—the highest number in a decade.
However, analysts warn that many of these projects have experienced delays in the past and remain highly uncertain. Overreliance on gas-fired power could also hinder renewable energy deployment and exacerbate environmental damage.
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