Beatrice Lang
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 explore the latest data on electricity access, the progress made, and the challenges that remain in ensuring universal access to this vital resource.
| Characteristics | Values |
|---|---|
| Number of people without electricity access in 2023 | 750 million |
| Number of people without electricity access in 2024 | 737 million |
| Number of people without electricity access in 2022 | Nearly 775 million |
| Number of people without electricity access in 2015 | Less than 1 billion |
| Number of people without electricity access in 2000 | 20% of the global population (1.75 billion) |
| Number of people unable to use electricity | 1.18 billion |
| Percentage decrease in the number of people without access to electricity from 2000 to 2024 | More than 50% |
| Percentage decrease in the number of people without access to electricity in developing Asian regions from 2000 to 2024 | 90% |
| Number of people without electricity access in Sub-Saharan Africa in 2024 | 80% of the global total |
| Number of people without electricity access in Sub-Saharan Africa in 2023 | 80% of the global total |
| Number of people without electricity access in Sub-Saharan Africa in 2030 | 545 million |
| Number of countries in Sub-Saharan Africa that have targets to reach universal electricity access by 2030 | Fewer than a fifth |
| Number of people without electricity access in 2030 | 645 million |
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What You'll Learn
Energy poverty and the lack of electricity service provision
Energy poverty is defined by the World Economic Forum as the lack of access to sustainable modern energy services and products. It is a significant issue, with an estimated 3.5 billion people having limited access to energy and accounting for less than 10% of global household final energy demand. Energy poverty is strongly linked to economic and social development, with poorer countries often having the worst energy services. This contributes to malnourishment, unhealthy living conditions, and limited access to education and employment.
The International Energy Agency (IEA) defines 'access to electricity' as more than just electricity delivery to a household. It also includes a requirement for households to consume a minimum amount of electricity, which differs based on whether the household is in a rural or urban area. The minimum consumption levels are 250kWh per year for rural households and 500kWh per year for urban households.
According to the IEA, the number of people worldwide lacking access to electricity in 2023 was 750 million, a decrease of 10 million from 2022. The biggest decline was in developing Asian regions, with a nearly 90% decrease in the population without access to electricity from 2000 to 2024. However, the number of people without access to electricity in Sub-Saharan Africa increased during the same period, accounting for 80% of the global total in 2024. It is estimated that approximately 600 million people, or 57% of the population, in Sub-Saharan Africa live without electricity.
To address energy poverty, significant investments are required, especially in the least developed countries. International support and concessional finance are crucial in lowering the risks for private investors. National governments also play a vital role in implementing electrification plans and allocating capital to access projects. The United Nations Agenda for Sustainable Development has set a goal of achieving universal energy access by 2030. This will require accelerating development plans and addressing affordability issues.
The European Union (EU) has also recognized the importance of tackling energy poverty and ensuring vulnerable consumers have access to essential energy services. The EU has introduced various policies and measures, such as the Energy Poverty Observatory (EPOV) initiative and the Clean energy for all Europeans package, to identify, monitor, and address energy poverty. The revised Energy Performance of Buildings Directive, which entered into force in May 2024, includes specific provisions related to energy-poor households and people living in social housing.
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The global energy crisis and its impact on access
Access to electricity is crucial for poverty alleviation, economic growth, and improved living standards. The International Energy Agency (IEA) defines 'access to electricity' as more than just electricity delivery to a household. It also includes a requirement for households to consume a minimum amount of electricity, which differs based on whether the household is in a rural or urban area, and this threshold increases over time.
While the share of people with access to electricity has been steadily increasing over the last few decades, the global energy crisis is undermining efforts to ensure universal access to secure and affordable energy. According to the IEA, the number of people worldwide lacking access to electricity in 2022 was set to increase by nearly 20 million, reaching nearly 775 million. This was the first global increase since the IEA began tracking the numbers 20 years ago. The rise was mostly in Sub-Saharan Africa, which accounted for 80% of the global total in 2024. Some countries already witnessing rising populations without access will see this trend accelerate, with the largest increases set to occur in the Democratic Republic of the Congo and Madagascar.
The energy crisis has been exacerbated by sharply rising prices of key components used to manufacture solar PV modules, batteries, and inverters, further exacerbated by local currencies depreciating against the dollar. The cost of solar and hybrid mini-grids has increased by at least 20% in 2022 from pre-pandemic levels. Sales of large solar home systems (SHS) in 2021 were nearly a third lower than their 2019 peak, with the largest declines happening in East Africa. These effects are putting firms in the off-grid industry under financial duress, with a majority of firms indicating they are at risk of bankruptcy in the next three years.
To achieve universal access to electricity by 2030, considerable efforts are needed in several countries, especially in Sub-Saharan Africa. Ensuring universal access will require an investment of USD 50 million each year on average from now. International support is essential, with concessional finance playing a key role in lowering the perceived risk for private investors. National governments must also implement robust electrification plans and allocate capital to access projects accordingly. While achieving universal access is a challenging goal, it is essential to alleviate poverty, drive economic growth, and improve living standards.
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The cost of electricity and its usage
Access to electricity is an important social and economic indicator, and it 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 a significant number of people worldwide who lack access to electricity. In 2024, the number of people without access to electricity worldwide was estimated to be around 737 million, a decline of more than half compared to the year 2000. The biggest decline was recorded in the developing Asian region, while the number increased in Sub-Saharan Africa, which accounted for 80% of the global total in 2024.
The concept of "access to electricity" goes beyond just electricity delivery to a household. According to the International Energy Agency (IEA), it also includes a requirement for households to consume a minimum amount of electricity, which differs based on whether the household is in a rural or urban area. This minimum consumption level is set at 250kWh per year for rural households and 500kWh per year for urban households by the IEA. However, even with access to electricity, there are still many people who are unable to use it due to factors such as unreliable power supply, unaffordability, or lack of access to necessary services or appliances. This phenomenon is known as energy poverty, and it affects an estimated 1.18 billion people worldwide.
The cost of electricity varies depending on various factors, including the region, the source of electricity, and the infrastructure used for distribution. In recent years, the prices of key components used in solar energy systems, such as solar PV modules, batteries, and inverters, have sharply risen, affecting the cost of electricity generation. Additionally, the depreciation of local currencies against the dollar has exacerbated the situation. These factors have contributed to an increase in the cost of solar and hybrid mini-grids, as well as the average market price for new solar home systems (SHS).
The high cost of electricity can have significant implications for individuals and communities. Firstly, it can lead to energy poverty, where people lack access to adequate, reliable, and affordable energy for essential daily activities such as lighting, cooking, and heating. Energy poverty can have severe consequences for physical health, mental well-being, and social inclusion. Additionally, high electricity costs can hinder economic growth and development, particularly in regions with high energy costs relative to income levels.
Ensuring universal access to electricity by 2030, as targeted by the United Nation's Sustainable Development Goal 7, will require significant investments and efforts from international organizations, national governments, and private investors. This includes addressing affordability issues and implementing robust electrification plans that utilize off-grid solutions such as mini-grids and stand-alone systems, in addition to traditional grid expansions.
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The progress and setbacks in different regions
Access to electricity is an important social and economic indicator, and it has been steadily increasing over the last few decades. However, there are still regions that lack access, and the progress towards universal access has faced setbacks.
In 2020, around 733 million people lacked any electricity connection, but when accounting for those with access but unable to use it due to unaffordability or unreliable connections, the number of people unable to use electricity rises to 1.18 billion. This phenomenon is known as energy poverty, and it is characterized by a lack of adequate, reliable, and affordable energy for essential daily activities.
Between 2000 and 2024, the number of people without access to electricity worldwide dropped significantly, with the most significant decline occurring in developing Asian regions, which saw a 90% decrease. However, during the same period, the population without access to electricity in Sub-Saharan Africa increased, accounting for 80% of the global total in 2024. This disparity highlights the uneven progress across regions.
Despite the overall positive trend, there have been setbacks in recent years. In 2022, for the first time in decades, the number of people without access to electricity was projected to increase, with the largest increases expected in the Democratic Republic of the Congo and Madagascar. This setback was attributed to the global energy crisis, rising prices of key components for solar technologies, and financial challenges faced by off-grid industry firms. These factors have hindered efforts to achieve universal access by 2030, as outlined in the United Nation's Sustainable Development Goal 7.
To address these challenges and achieve universal access, significant investments are required. The International Energy Agency (IEA) projections indicate that ensuring universal access by 2030 will necessitate an average annual investment of USD 50 million. Additionally, international support and concessional finance are crucial for lowering the investment risk for private investors in the least developed countries. National governments also play a vital role in implementing robust electrification plans and allocating capital to access projects.
In summary, while there has been notable progress in increasing access to electricity globally, particularly in developing Asian regions, setbacks have occurred in recent years, especially in Sub-Saharan Africa. To overcome these challenges and achieve universal access by 2030, increased investments, international collaboration, and robust electrification plans are imperative.
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The efforts and investments needed to ensure universal access
According to the International Energy Agency (IEA), 'access to electricity' involves more than just electricity delivery to a household. It also includes a requirement for households to consume a minimum amount of electricity, which differs based on whether the household is in a rural or urban area. The minimum consumption levels necessary to be considered as having electricity access based on the IEA methodology are 250kWh per year for rural households and 500kWh per year for urban households.
While access to electricity has been steadily increasing globally over the last few decades, there has been a recent setback. For the first time in two decades, the number of people without access to electricity is set to increase. The global energy crisis is undermining efforts to ensure universal access to secure affordable energy, especially in the developing world. According to the IEA, the number of people without electricity worldwide is projected to rise by nearly 20 million in 2022, reaching nearly 775 million. This increase is mainly driven by the rising prices of key components used to manufacture solar PV modules, batteries, and inverters, which has been exacerbated by local currencies depreciating against the dollar.
To achieve universal access to electricity, significant efforts and investments are needed. Firstly, international support is crucial, especially in the form of concessional finance, which can help lower the risk for private investors. National governments also have a critical role in implementing robust electrification plans and allocating capital to access projects. Additionally, to meet the 2030 target for universal access, more than half of the population gaining access will need to rely on off-grid solutions such as mini-grids and stand-alone systems. This approach can help accelerate access-related development plans and address affordability issues.
Ensuring universal access to electricity will require substantial investments of USD 50 million each year on average until 2030. This includes costs for power generation, electricity networks, and decentralised solutions. While current investments fall short of this level, the benefits of achieving universal access are significant. Electricity is crucial for poverty alleviation, economic growth, and improved living standards, including health, social, and economic outcomes.
In conclusion, ensuring universal access to electricity by 2030 will require concerted efforts from international organisations, national governments, and private investors. By addressing financial challenges, accelerating development plans, and promoting off-grid solutions, the world can achieve universal access to electricity, bringing numerous social and economic benefits to those currently lacking this basic necessity.
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Frequently asked questions
As of 2024, around 737 million people do not have access to electricity.
No, access to electricity has been steadily increasing over the last few decades, but in 2022, the number of people without access to electricity was set to increase for the first time in 20 years.
Sub-Saharan Africa is the most affected, with 80% of people without access to electricity living there.
In 2020, around 545 million people in sub-Saharan Africa did not have access to electricity, and this number is projected to increase to 645 million by 2030.
The International Energy Agency (IEA) has set out plans and programs to address affordability issues and support decentralized solutions such as mini-grids and standalone systems. However, current investments are well below the required level, and international support is essential to encourage private investment.
