The Strait of Hormuz, through which around 20 per cent of global oil and gas supplies pass, has become a critical point of vulnerability as ongoing conflict between Iran and the United States has severely disrupted maritime traffic. This disruption has exposed the global economy’s heavy dependence on fossil fuels, leading to volatile prices, supply insecurity, and heightened geopolitical risks. UN Secretary-General António Guterres has warned that such concentrated energy systems mean that conflicts in key regions can send shockwaves across global markets, disproportionately affecting the most vulnerable populations.
In contrast, renewable energy sources such as solar, wind, and hydropower are increasingly being recognized as stable, locally generated, and cost-effective alternatives. Guterres has emphasized that renewables are becoming the foundation of energy security and sovereignty, noting that unlike fossil fuels, they are not subject to price spikes or geopolitical embargoes. Beyond energy security, renewables also contribute to lower emissions, improved public health, job creation, and long-term economic resilience, accelerating a global shift already visible in several leading countries.
Norway stands out as a strong example of a renewable-powered electricity system, where hydropower accounts for around 90–95 per cent of generation. While the country remains a major exporter of oil and gas, its domestic energy supply is overwhelmingly clean and stable. Norway is also advancing electrification of transport and offshore wind expansion, further reducing reliance on fossil fuels within its internal energy system.
Paraguay has achieved near-total renewable electricity generation, relying almost entirely on hydropower from large binational dams such as Itaipú. This gives the country energy independence, extremely low-cost electricity, and even surplus power for export. Although transport still depends on fossil fuels, Paraguay remains one of the world’s clearest examples of a fully renewable electricity grid.
Nepal has also made significant progress, with hydropower now dominating its electricity sector and accounting for roughly 98 per cent of installed capacity. This transition has reduced dependence on imported fossil fuels and improved energy stability in a geographically challenging, mountainous country. Efforts are also underway to expand rural electrification, develop decentralized renewable systems, and promote cleaner cooking solutions to reduce household pollution and improve health outcomes.
Ethiopia is emerging as a renewable energy leader in Africa, with over 98 per cent of its power capacity coming from hydropower, supported by growing solar and wind investments. Renewables are central to its strategy for expanding electricity access, particularly in remote areas, reducing fuel imports, and supporting long-term economic development. The expansion of clean energy is also helping improve agricultural productivity and rural livelihoods.
Across these diverse countries, a clear global pattern is emerging: renewable energy strengthens energy independence, stabilizes costs, and reduces exposure to global crises while delivering broad social and economic benefits. However, the transition remains uneven, with challenges in financing, infrastructure development, and ensuring equitable access. Despite these obstacles, UN leadership continues to stress that the shift toward renewables is irreversible, with clean energy increasingly placing power—both literally and economically—into the hands of governments and communities worldwide.
