Many societies did produce good quality* steel, but it's very expensive and only available in very limited quantities. Limited quantities means it just isn't available to be used for anything other than very specific, niche uses. And that really is the problem - so many other technologies rely on a number of other technologies to come to fruition (Sid Meier's Civilization) that removing or really hindering a single but very important technology stops the tech tree from continuing.
This does not require that there is only one path to a specific technology, nor that this hypothetical world end up looking like the one we inhabit.
The thing about affordable iron and steel is that all of a sudden you've got a material that can be used in numerous applications - that availability and affordability drives innovation and hence technology.
But is steel required to advance all tech, is it required to advance civilization? If one wishes to have the end result look exactly as what we have now then probably yes.
Approximately 45% of all electricity generation in the UK is based on burning coal as I type. There really isn't any other fuel that I can think of that can produce the heat required in such quantity so easily without advanced technology to a) mine/extract it b) use it.
Is it required that industrialization involve the UK?
the difference between discovery and use; science and engineering. It's fine to discover something, but it requires a whole load of other factors to be present for a new discovery to produce any benefit and hence; the modern world.
The modern world we know. However, if necessity drives invention along different paths perhaps Sweden , with fast flowing rivers, becomes a nexus of industry rather than the UK.
Towers could be replaced perhaps by burial of cables. At any rate, the electrical grid did not jump to what we have now. It began much smaller.
You simply cannot extract enough energy from wind to get anywhere near enough power to start powering electric arc furnaces for steel making without first going through the industrial revolution and 20th century advances that provide the infrastructure for wind power to be distributed to such facilities in the first place.
But hydro could, and again that would see more mountainous countries taking a lead in this.
Hydro-elecric power in Canada is one of the reasons why Aluminium and it's many alloys is so prevalent today. Cheap electricity close to the source of ore is a massive bonus. However, you need sufficient technological advancement to be able to take advantage of a natural resource.
Yes, my point, that and time, remember I did say it would all take more time, and the different drive,impetus, necessities than what our reality had.
How do you use hydro when there aren't any sufficiently good sites?
You don't. It would create a much different world, wouldn't it.
A world limited to wind and water power without a resource that provides cheap energy would stagnate. There is just no way that such a world can make the leap to advanced technology using wind and water power alone. It's energy starved.
I'd love it all to be milk and honey, but the truth is, without fossil fuels we'd never be typing our posts.
You will note my tongue in cheek last line in my above post.
Perhaps I am simply less pessimistic than you are.
The world did not stagnate through the Renaissance, it certainly did not stagnate through the rise of Rome.
A rise through to what we consider advanced technology could, in my optimistic opinion, take place even, if it took 2, 3, 10, times as long as it took in reality.