The ongoing Iran war is emerging as a catalyst for an energy shift. Nations are rapidly boosting investments in solar, wind, and battery storage to avoid high energy prices and supply shocks. For example, it’s been a “significant turning point” for South Korea’s energy strategy, accelerating its move away from oil and toward renewables, according to the country’s energy minister, as quoted on CNBC.
In an interview with CNBC’s Lisa Kim, Minister of Climate, Energy and Environment Kim Sung-hwan highlighted a “growing national consensus” around the need for a fundamental energy transition.
South Korea remains highly dependent on energy imports, sourcing about 94% of its energy needs from abroad. Nearly 72% of its crude oil imports come from the Middle East, leaving it particularly vulnerable to the Iran war.
The president of the Philippines recently announced a “national energy emergency.” Prime Minister Albanese went on national television to inspire his fellow Australians to cut private commuting and take the bus instead, given the country’s heavy reliance on imported fuel, as quoted on the World Resources Institute website.
South Korea’s Ambitious 100 GW Renewable Target by 2030
South Korea has set a goal of reaching 100 gigawatts (GW) of renewable energy capacity by 2030. At present, the country has around 37 GW installed, based on data from the Renewable Energy Institute. To bridge this gap, the government plans to prioritize solar and wind energy, with solar expected to play a leading role in the near term.
China’s Dominance in Global Solar Industry
Globally, China continues to dominate solar production, controlling the vast majority of polysilicon, wafers, photovoltaic cells and modules. Hence, despite favorable conditions, South Korea’s solar manufacturing sector has struggled against China’s dominance in the global supply chain.
Chinese firms made up more than 95% of South Korea’s solar cell market in 2024, up sharply from 38% in 2019. Meanwhile, domestic producers saw their stocks fall from 50% to just 4% over the same period.
China has invested heavily in renewable power generation and equipment manufacturing. It’s now the world’s largest solar photovoltaic and wind turbine manufacturer. Electricity from solar, wind and hydropower comprises nearly 36% of China’s total electricity generation, up from 16% in 2000, as quoted on World Resources Institute.
Growth of Global Renewable Energy
According to the International Renewable Energy Agency (IRENA), renewables accounted for about 49% of global capacity by the end of 2025. This marks a significant step forward in the transition to sustainable power, as quoted on solarquarter.com.Solar energy took the charge of this advancement.
Clean Energy ETFs in Focus
These clean energy ETFs appear poised to capitalize on the sector’s growing momentum. Investors should maintain a long-term investment horizon.
Investors can consider iShares Global Clean Energy ETF ICLN, First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN, State Street SPDR S&P Kensho Clean Power ETF CNRG, Invesco Global Clean Energy ETF PBD and Invesco WilderHill Clean Energy ETF PBW.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
