Wiktor Wise
Access to electricity is crucial for poverty alleviation, economic growth, and improved living standards. While the share of people with access to electricity has been steadily increasing over the last few decades, there are still hundreds of millions of people without electricity access. This paragraph will discuss the number of people worldwide who do not have access to electricity and the factors contributing to this issue.
| Characteristics | Values |
|---|---|
| Number of people without electricity access in 2023 | 750 million |
| Number of people without electricity access in 2024 | 737 million |
| Percentage decrease in number of people without electricity access from 2000 to 2024 | More than half |
| Number of people projected to remain without access in 2030 | 645 million |
| Number of people without access to electricity in 2020 | 733 million |
| Number of people unable to use electricity in 2024 | 1.18 billion |
| Region with the highest number of people without access to electricity in 2024 | Sub-Saharan Africa |
| Region with the highest number of people without access to electricity in 2023 | Sub-Saharan Africa |
| Region with the highest improvement in access to electricity in 2023 | Developing Asia |
| Region with the highest improvement in access to electricity from 2000 to 2024 | Developing Asia |
| Minimum consumption levels necessary for "access to electricity" in rural households | 250 kWh per year |
| Minimum consumption levels necessary for "access to electricity" in urban households | 500 kWh per year |
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What You'll Learn
Energy poverty and the developing world
Energy poverty is a pressing issue in the developing world, with significant implications for the welfare and economic development of affected communities. Energy poverty refers to the lack of adequate, reliable, and affordable energy for essential daily activities such as lighting, cooking, and heating. While global access to electricity has improved over the last few decades, with fewer than 1 in 10 people lacking access in recent years, the progress has not been evenly distributed.
In 2024, it was estimated that around 737 million people worldwide lacked access to electricity, with this number projected to be 645 million by 2030. The situation is particularly acute in Sub-Saharan Africa, which accounted for 80% of the global total in 2024 and is expected to account for 85% of the total population without access to electricity in 2030. Countries such as the Democratic Republic of Congo, Ethiopia, Madagascar, Malawi, Niger, Nigeria, Sudan, Tanzania, and Uganda have a significant way to go to achieve universal access.
The barriers to energy access in these regions are multifaceted. Firstly, there are financial constraints. The global energy crisis has disproportionately impacted the developing world, with rising prices for fuel and food affecting those who are least equipped to cope. Additionally, access to finance for energy projects in the least developed countries is challenging, and international support is often necessary to lower the risk for private investors. Secondly, there are infrastructure gaps. While large-scale infrastructure projects can help, energy poverty often exists in close proximity to established electrical networks, indicating that local solutions are also crucial. Off-grid solutions such as mini-grids and stand-alone systems can play a role in providing access to those currently unserved by the grid.
The consequences of energy poverty are severe and far-reaching. They include harm to physical health and mental well-being, social exclusion, and stigmatization. Moreover, energy poverty hinders poverty alleviation, economic growth, and improved living standards. For example, access to electricity and clean cooking fuels is vital for good health and a better standard of living. Therefore, addressing energy poverty in the developing world is crucial for the overall welfare and progress of these regions.
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Progress in Sub-Saharan Africa
While access to electricity has been steadily increasing globally, with the number of people without electricity access decreasing from 2 in 10 people in 2000 to fewer than 1 in 10 in recent years, significant disparities persist, and the progress made is not uniform across all regions. Sub-Saharan Africa is one such region that has witnessed a mixed trajectory in terms of providing access to electricity to its populace.
In 2022, for the first time in decades, the number of people without access to electricity was projected to increase, reversing the previous trend of progress. This setback was attributed to the global energy crisis, rising prices of fuel and food, and specific challenges within the region. Notably, the number of people without access to electricity in Sub-Saharan Africa increased, accounting for nearly 80% of the global total in 2024. This increase was primarily driven by setbacks in countries such as the Democratic Republic of Congo, Ethiopia, Madagascar, and Kenya, where population growth outpaced new connections.
However, it is important to acknowledge that progress has been made in Sub-Saharan Africa as well. For instance, in 2023, the number of people without access to electricity in the region declined, driven by renewed grid expansions and the adoption of solar home systems (SHS). This progress is significant, considering that the majority of people without access to electricity globally reside in Sub-Saharan Africa.
To achieve universal access to electricity in Sub-Saharan Africa, several measures need to be undertaken. Firstly, international support is crucial, as access to finance is often a challenge for the least developed countries. Concessional finance can play a pivotal role in encouraging private investment in the region. Additionally, national governments must implement robust electrification plans and allocate capital accordingly. Off-grid solutions such as mini-grids and stand-alone systems can be utilized to provide initial access to electricity for a significant portion of the population.
Furthermore, addressing energy poverty is essential. Even within electrified areas, many individuals are unable to use electricity due to frequent power outages, equipment malfunctions, or distribution network gaps. Energy poverty has detrimental consequences for physical health, mental well-being, and social inclusion. By improving the reliability and affordability of electricity access, the benefits of electricity can be extended to more people.
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Impact of the global energy crisis
Access to electricity is an important metric for poverty alleviation, economic growth, and improved living standards. While global energy access has been increasing, the number of people without electricity in 2022 increased for the first time in over a decade, with 685 million people without access—10 million more than in 2021. This was due to a combination of factors, including the global energy crisis, inflation, growing debt distress in many low-income countries, and increased geopolitical tensions. The number declined to 750 million in 2023, but this still represents a significant reversal in progress.
The impact of the global energy crisis is particularly evident in Sub-Saharan Africa, where population growth has outpaced efforts to extend access to electricity. In 2022, 570 million people in the region lacked access to electricity, accounting for more than 80% of the global population without access. The number stabilised at around 600 million in 2023, well above the number before the Covid-19 pandemic. The Covid-19 pandemic also played a role in this crisis, erasing years of slow but steady progress in Sub-Saharan Africa.
The consequences of limited access to electricity are severe and far-reaching. Energy poverty, defined as a lack of adequate, reliable, and affordable energy for essential daily activities, impacts the health and well-being of individuals. It contributes to social exclusion, stigmatisation, and serious physical and mental health issues. Additionally, the lack of access to clean cooking fuels and technologies affects women's ability to pursue other opportunities, as they spend a significant amount of time gathering firewood and cooking.
The global energy crisis has also led to a disparity in clean energy investment, with 80% concentrated in just 25 countries in 2022. This inequality in investment contributes to the energy access gap, as countries with larger deficits fall further behind. The crisis has also impacted the shift from solid fuels to modern energy sources, with stagnant progress in recent years. This stagnation has resulted in millions of deaths annually from breathing in cooking smoke, highlighting the urgent need for a transition to cleaner energy sources.
To address the impact of the global energy crisis and reduce energy poverty, international support and concessional finance are crucial. National governments must also play a pivotal role by implementing robust electrification plans, allocating capital to access projects, and accelerating access-related development plans that address affordability and support decentralised solutions. While progress towards universal access to electricity has faced setbacks, there is optimism for stronger progress later in the decade, driven by renewed political momentum within the G7 and G20 contexts, as well as new financial commitments.
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Investment and international support
As of 2023, around 750 million people worldwide lack access to electricity, a decrease from 2022 when the number peaked at 600 million due to the energy crisis triggered by the war in Ukraine. The number of people without electricity in Sub-Saharan Africa increased, and the region now accounts for 80% of those without access to electricity globally.
The International Energy Agency (IEA) estimates that providing electricity access and clean cooking solutions to those without them costs around $40 billion a year. This is equivalent to about 1% of the average annual energy sector investment on a path to net zero by 2050. To achieve Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy, the international community must accelerate investments in renewable energy infrastructure and sustainable technologies. International public financial flows to developing countries in support of clean and renewable energy reached $14 billion in 2018, but only 20% went to the least-developed countries. There is a need to further scale up international financial flows and target those countries falling furthest behind in reaching SDG 7.
The public sector plays a crucial role in leveraging private capital, especially in developing countries and in a post-COVID context. However, access to finance is challenging for the least developed countries, and national governments must implement robust electrification plans and allocate capital to access projects. International support is essential in lowering the perceived risk for private investors. The World Bank, for example, is actively working to support the acceleration of renewable energy deployment and has committed to providing electricity to an additional 300 million people by 2030.
To achieve universal access, more than half of the population gaining access will need to do so through off-grid solutions such as mini-grids and stand-alone systems. This will require investment in physical capital, as well as complementary skills and technological capabilities to adapt advanced green technologies to specific contexts. International support to promote access to green technologies and foster innovation can facilitate this transition.
Meeting the targets of Goal 7 and the Paris Agreement will require sustained policy momentum to scale up renewable energy deployment and energy conservation in all sectors, as well as to mobilize public and private investment, particularly in developing countries. Prioritizing energy efficiency in policies and increasing investment can help the world achieve its energy and climate targets.
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Universal access by 2030
Access to electricity is crucial for poverty alleviation, economic growth, and improved living standards. While the share of people with access to electricity has been steadily increasing over the last few decades, there are still hundreds of millions of people without electricity access. According to the World Bank, 1.18 billion people around the world are unable to use electricity due to lack of connectivity or unaffordable and unreliable access. This situation is known as energy poverty, which is defined as a lack of adequate, reliable, and affordable energy for essential daily activities. Energy poverty can have severe consequences, including negative impacts on physical health and mental well-being, social exclusion, and stigmatization.
In 2024, the number of people without access to electricity worldwide was estimated to be around 737 million, a significant drop from nearly 2 billion at the turn of the millennium in 2000. This progress is mainly attributed to growth in low and middle-income economies, particularly in developing Asian regions, which saw a nearly 90% decline in the population without access to electricity between 2000 and 2024. However, despite this progress, the number of people without access to electricity is projected to increase again in the coming years.
The International Energy Agency (IEA) projected that nearly 20 million more people would lack access to electricity in 2022, reaching a total of about 775 million. This increase is primarily driven by rising prices for key components used in solar technology, such as PV modules, batteries, and inverters, as well as depreciating local currencies against the dollar. As a result, the cost of solar and hybrid mini-grids has surged, and sales of large solar home systems (SHS) have declined. These factors have put financial strain on firms in the off-grid industry, threatening their survival and setting back efforts to achieve universal access by 2030.
To achieve universal access by 2030, as outlined in the United Nation's Sustainable Development Goal 7, accelerated action is required. According to the IEA, more than half of the population gaining access will need to rely on off-grid solutions such as mini-grids and stand-alone systems. Additionally, international support and concessional finance are crucial to lowering the investment risk for private investors in the least developed countries, where the access gap is the largest. National governments also have a role in implementing robust electrification plans and allocating capital to access projects. Ensuring universal access by 2030 will require an average annual investment of USD 50 million.
While some developing countries in Asia are on track to achieve universal access by 2030, leaving only 2% of their populations without electricity, efforts must continue in countries like Afghanistan, Mongolia, and Pakistan. In Sub-Saharan Africa, the challenge is more significant, with 80% of the global population without electricity access residing in the region in 2024. Countries like the Democratic Republic of Congo, Ethiopia, Madagascar, Malawi, Niger, Nigeria, Sudan, Tanzania, and Uganda require considerable attention, as they represent more than half of the global population without access in 2030.
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Frequently asked questions
As of 2024, around 737 million people do not have access to electricity, down from 1.18 billion in 2020.
Since 2000, access to electricity has increased dramatically across the globe, jumping from 75% of the global population to 90% by 2020. That means that billions of people gained access to electricity during this period.
Energy poverty is a lack of adequate, reliable, and affordable energy for lighting, cooking, heating, and other daily activities necessary for welfare and economic development.
In 2024, 80% of the global population without access to electricity lived in Sub-Saharan Africa. However, the biggest improvements between 2000 and 2024 were seen in developing Asian countries, where the population without electricity declined by nearly 90%.
The World Bank has committed to providing electricity to an additional 300 million people by 2030, through the deployment of solar mini-grids and solar home systems. Many developing countries in Asia are also on track to achieve universal access by 2030.
