Guide to Achieving Electrostatic Statehood
In a world increasingly focused on clean energy, the role of becoming a consumer electrostate—a nation that prioritises electricity consumption—is gaining prominence over manufacturing clean energy technologies. This shift is particularly relevant for many countries, as highlighted by the experiences of nations across the globe.
One of the most compelling reasons for this transition is the economic benefits it brings. Expanding electrification not only improves a nation's economic performance and opportunities, but it also pays social dividends by enhancing education and healthcare provision.
This trend is evident in various parts of the world. South Africa, for instance, is avoiding power outages and keeping lifesaving machines running by importing Chinese solar panels. Similarly, countries like India, Australia, and several European nations have doubled their power system capacity over the past six years by importing Chinese solar modules. Even Saudi Arabia, a traditional petrostate, has joined the ranks, importing Chinese solar panels as part of its plan to electrify its own economy.
Pakistan is another example, having doubled the capacity of its power system by importing Chinese solar panels in the past six years. The country is also importing batteries to store solar energy, a move that underscores the growing importance of electricity in the global energy landscape.
The environmental benefits of electrification are equally significant. Electricity is cleaner, leading to improvements in air quality and a reduction in emissions. This is reflected in China, where electricity's share of final energy consumption has surged to about 30 percent. Even in countries with a fossil fuel-heavy power mix, such as the United States, switching from a gas furnace to a heat pump cuts emissions.
Electric vehicles (EVs) are another testament to the environmental advantages of electrification. Despite being powered by fossil fuel-heavy grids, EVs still emit less CO2 than gas cars.
However, it's important to note that while becoming a consumer electrostate offers numerous benefits, policymakers must be clear about their objectives. Electrifying their own economies may open up wider possibilities for economic development. For instance, rural electrification in the United States in the 1930s and hydropower-driven electrification in Brazil in the 1970s expanded economic opportunities.
China, the leading exporter of clean energy technologies, is a prime example of this. The country is rapidly swapping out machines reliant on fossil fuels for alternatives powered by electricity. In 2024, clean energy sectors made up more than 10 percent of China's GDP.
Bangladesh, which has passed the United States and Europe in terms of electricity's share of final consumption, is another case in point. Although the country doesn't produce many clean-tech goods, it is installing clean energy technologies, such as mandating solar panels on public buildings.
The geopolitical advantages of becoming a consumer electrostate are also clear. Just as the British Navy switched from coal to oil in 1912 and the U.S.'s economy ascended in the early 20th century as it exported and used oil, electricity offers a similar level of security. It is not subject to embargoes or balance-of-payments crises, making it a more secure source of energy.
In conclusion, the shift towards electrification is a global trend that is reshaping economies and improving environments. As more countries embrace this transition, the benefits—both economic and environmental—are likely to become even more pronounced.
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