For the first time renewable energy has overtaken coal as the world’s largest source of electricity, marking a historic milestone long projected by the International Energy Agency. Yet progress toward clean energy is far from even. While the transition has slowed across the United States and the European Union, developing nations are advancing rapidly, each driven by its own mix of necessity, innovation, and opportunity.
China often dominates global headlines for the vast scale of its clean energy expansion. However, smaller nations across South Asia are making equally significant strides, reshaping their energy landscapes through policies and projects that meet local needs. Their motivations go beyond tackling climate change; many aim to reduce dependence on costly fossil fuel imports, stabilise unreliable power supplies, and strengthen livelihoods.
In Bhutan, a country long known for its hydropower exports, the challenge lies in seasonal variability. Most of Bhutan’s hydropower stations are run-of-the-river systems, which depend directly on river flow and experience sharp drops in generation during the dry winter months. As industrialisation increases domestic electricity demand, Bhutan often turns to imports from India to meet shortages.
To ensure a stable energy supply year-round, the government is now diversifying its energy mix by adding solar, wind, and biomass. The first large-scale solar farm is already under construction, and plans are in place to install up to 300 megawatts of solar power soon.
Nepal’s clean energy transition began in crisis. When India imposed an unofficial blockade in 2015, fuel imports stopped and prices soared, exposing Nepal’s dependence on imported petrol. The government responded with an ambitious electric vehicle programme to reduce reliance on fossil fuels and cut air pollution in Kathmandu.
Electric vehicles now make up 76 per cent of new four-wheeler sales, supported by incentives and tax exemptions. Charging networks and maintenance services have grown quickly, creating new business opportunities. Despite political uncertainty following a recent government change, Nepal commitment to electric mobility continues to strengthen.
Sri Lanka’s shift toward renewables gained momentum after the severe economic crisis of 2022 and 2023, which brought fuel shortages, long power cuts, and steep electricity price hikes. The crisis forced authorities to confront the fragility of the nation’s fossil fuel-based system. Today, renewables account for about half of Sri Lanka’s power generation, mostly from hydropower, with a national goal of reaching 70 per cent by 2030.
Researchers and companies are working on artificial intelligence-based grid management systems to stabilise supply from solar and wind energy. Some of these initiatives also focus on empowering women through training and entrepreneurship in the energy sector.
For the Maldives, the clean energy transition is about survival. The island nation relies heavily on imported diesel for electricity, making it vulnerable to price shocks and high transport costs. To change this, the Maldives launched the Preparing Outer Islands for Sustainable Energy Development project in 2014, targeting 160 remote islands. The initiative replaces diesel generators with solar arrays, battery storage, and improved power grids. Women-led enterprises operate some of these solar systems, while training programmes prepare more women to work in energy management. The Maldives’ 2030 net-zero roadmap focuses on ensuring that renewable energy benefits reach all communities fairly.
Together, Bhutan, Nepal, Sri Lanka, and the Maldives show that there is no single path to clean energy. Each country’s transition reflects its unique pressures and priorities, from hydropower diversification to electric mobility and island resilience. While their stories rarely make global headlines, they demonstrate that the clean energy revolution is not confined to rich nations. It is unfolding in developing economies, where necessity, ambition, and innovation combine to redefine what a sustainable future looks like.