Green Energy of the BRICS Countries: The Driver of Inclusive Development

Abstract

AbstractPurpose The study aims to analyze the drivers of the renewable energy sources development in the BRICS countries as well as to assess the models of the renewable energy sources market incentives. The driving forces of the sixth technological order: global digitalization and intellectualization of economic processes, the introduction of innovative technologies and the smart use of resources—have an unprecedented impact on the development of world energy and create conditions for the introduction of fundamentally new methods of power generation. Over the past decade, some BRICS countries have already been at the forefront of countries that are rapidly introducing renewable energy sources (RES) into their energy balances. Methodology The authors use modern concepts of energy market development as well as academic approaches to renewable energy sources in the context of sustainable development. The systemic, economic, factor and comparative analysis, as well as methods of expert assessments, are used. Findings In the context of inclusive development the authors identified the state, features and prospects of the RES-development in the BRICS countries, found out the factors affecting the share of the RES in the structure of primary energy consumption in the BRICS countries. Models and regulatory mechanisms of the green electricity market are analyzed and compared across countries. The paper reveals that the increase in the installed capacity of the RES power plants could slow down the rate of carbon dioxide emissions, thereby contributing to the inclusive development of the BRICS countries. In turn, the dynamic introduction of the RES in electricity production of the BRICS countries is a timely and rational solution to the aggravating problems of energy supply, climate change, and environmental pollution.KeywordsRussiaRenewable energyBRICSInclusive growthGreen tariffCarbon neutralityAuctionJEL ClassificationD44P28Q42Q56