Global energy demand could rise by more than 60% by 2060, primarily due to rapid economic development in developing countries. According to a new report by S&P Global, this is comparable to adding another China to global consumption. Countries like Brazil, India, Nigeria, and Indonesia are actively expanding their energy infrastructure and imports to keep up with rapid economic growth.
Leaders of developing economies are making concerted efforts to increase renewable energy capacity, but according to S&P Global, meeting the growing demand will require a comprehensive approach. “This demand growth will be met by a variety of energy sources,” said Dan Yergin, Vice Chairman of S&P Global. “Renewables will play an important role. There may be more coal now... and oil and gas will remain part of the demand picture longer than many think.”
Developing economies have already become the new face of the energy transition. As of the end of 2025, 63% of developing markets in Africa, Asia, and Latin America were getting more electricity from solar energy than the U.S. Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia have outpaced the world's largest economies in the shift to clean energy. China played a significant role in this as the largest producer of clean energy infrastructure, whose cheap technologies accelerated the installation of solar capacities, and the instability in oil and gas markets caused by the closure of the Strait of Hormuz further pushed countries toward alternative sources.
At the same time, developing economies resist expectations that they will 'leapfrog' the fossil fuel stage and immediately transition to 100% renewable energy. Wealthy countries have promised to finance decarbonization in poorer ones, but the history of climate financing is full of unfulfilled promises. “Developing economies cannot wait for renewable energy to become cheaper to develop their energy systems,” notes Katie Auth, Deputy Executive Director of the Energy for Growth Hub.
According to her, the overall increase in energy demand has a positive impact on developing countries as it is associated with economic development, income growth, and job creation. “Currently, the average Liberian consumes less electricity in a year than my refrigerator. Therefore, the scale of energy poverty is much worse than most Americans can imagine,” Auth stated. This argument becomes even more compelling against the backdrop of the recent sharp increase in energy demand and carbon footprint in developed countries, driven by the development of artificial intelligence.
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