Business APAC
19th June 2024
A major shift in the clean energy landscape is accelerating as a new group of nations, dubbed the ‘sunbelt countries’, begin to outpace traditional industrial powers in green development. This pivot, driven by assertive government policy and realigning global supply chains, is positioning nations like India and Mexico to lead the next wave of industrial growth, firmly centered on renewable energy and manufacturing.
The move is attracting significant investment as companies seek to de-risk operations and capitalize on new opportunities. These emerging sunbelt countries are leveraging their geographical advantages and growing domestic markets to build a new kind of industrial base.
India’s ‘Make in India’ Powers Green Ambitions
India is aggressively leveraging its ‘Make in India’ policy to become a global hub for clean energy hardware. “Wind energy is not a component of our renewable energy strategy, but it is at the heart of it and at the centre of Atma Nirbhar Bharat [Self-reliant India],” stated Pralhad Joshi, India’s Union Minister for New and Renewable Energy, at a recent industry event. He stressed the goal of using renewables to power the nation’s manufacturing ambitions, declaring, “India is going to become the manufacturing hub of the world.”
The data backs this vision. In the 2024-25 fiscal year, India added a record-breaking 29.5 GW of renewable capacity, bringing its total to over 220 GW, according to government figures from PIB. The renewable sector now provides over a million jobs, a number set to grow as the nation pursues its ambitious energy goals. This rapid expansion showcases how key sunbelt countries are turning policy into tangible industrial might.
Mexico’s Nearshoring Boom Fuels Renewable Demand
In Mexico, the ‘nearshoring’ phenomenon—where companies move manufacturing closer to North American markets—is creating a massive new demand for electricity. To meet this surge sustainably, Mexico is aiming to generate 45% of its electricity from clean sources by 2030, a critical target for attracting and retaining environmentally-conscious global firms.
The strategic location of sunbelt countries like Mexico is proving to be a decisive economic advantage. A recent report from the energy think tank Ember highlights the scale of the opportunity. It estimates that developing the required 46 GW of new solar and wind projects to meet this goal would create over 434,000 direct jobs in construction and operations. This build-out is essential for powering new industrial parks and ensuring Mexico’s competitiveness.
The successful strategies in these leading sunbelt countries are expected to create a more resilient and diverse global clean energy supply chain, driving significant economic growth in the process.
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