Emerging economies across Asia, Africa, Latin America, and the Middle East have significantly outpaced the rest of the world in investments to modernize their power grids and accelerate electrification, marking a major shift in the global energy landscape. Since 2024, these countries have led global spending on key clean energy technologies imported from China, including grid infrastructure, cooling systems, and solar photovoltaic arrays.

Data from energy think tank Ember shows that, since early 2024, nations in the Global South have accounted for over half of global expenditures on Chinese-made grid equipment and cooling technology, a trend signaling widespread power system upgrades. These investments go beyond the deployment of solar panels, which have long been seen as the primary renewable technology in emerging markets, extending to the underlying hardware required to transmit electricity efficiently and manage increasingly complex grids.

Upgrades to power networks address a longstanding barrier to renewable energy expansion in these regions. Enhanced grid infrastructure facilitates greater integration of renewable sources while improving energy access and stability. As a result, utilities are preparing for future demand growth, especially amid rising electricity consumption driven by increased use of cooling appliances in rapidly urbanizing and warming cities.

Emerging markets have also dominated spending on air conditioning and heating systems since 2024, outpacing wealthier countries by approximately US$5 billion. While these devices increase overall electricity demand, the concurrent modernization of grids positions utilities to meet higher loads with cleaner power sources.

Solar panel imports by emerging economies have risen sharply, with about US$47 billion spent so far compared to US$37 billion in more developed markets. This investment has led to a substantial increase in solar capacity and reduced reliance on fuel imports for power generation, reinforcing local renewable energy deployment momentum.

Another notable trend is the rapid rise in imports of Chinese electric vehicles (EVs) within the Global South. While affluent economies continue to dominate EV spending—investing US$116.5 billion on imports in the first eight months of 2026—emerging markets have rapidly narrowed the gap, spending US$73.2 billion during the same period. This growth contrasts sharply with just US$6 billion spent on Chinese EVs by these markets in the first eight months of 2023, reflecting falling EV prices and the expansion of charging infrastructure.

However, emerging economies still lag behind in spending on Chinese battery energy storage systems, which are crucial for managing the variability of solar power and preventing supply disruptions at night. Developed countries have accounted for 71% of such expenditures since 2024, although Global South investments have more than doubled from around US$9 billion in early 2024 to US$21 billion in the first eight months of 2026.

All investments are measured in US dollars, and as prices for Chinese clean energy technology have declined, the actual capacity installed is likely greater than spending figures imply. Since 2024, the Global South has invested approximately US$235 billion in Chinese clean energy imports, quietly laying the foundation for more resilient and less fossil fuel-dependent energy systems amid ongoing global geopolitical tensions affecting oil and gas markets.

Experts caution that continued progress will depend on scaling up energy storage, improving access to finance, and implementing supportive local policies. If these conditions are met, emerging economies have the potential to achieve unprecedented rates of electrification, reshaping their energy futures even as uncertainty persists over traditional energy supply routes.