Trystan Casey
Access to electricity is crucial for poverty alleviation, economic growth, and improved living standards. The global electricity access rate has been steadily increasing over the last few decades, rising from 75% in 2000 to 91% in 2021. However, as of 2023, there are still around 750 million people worldwide who lack access to electricity, with the number projected to be 645 million by 2030. The lack of access to electricity is primarily due to poverty and remote locations, with Sub-Saharan Africa being the most affected region.
| Characteristics | Values |
|---|---|
| Global electricity access rate in 2021 | 91% |
| Number of people worldwide lacking access to electricity in 2023 | 750 million |
| Number of people worldwide lacking access to electricity in 2022 | 760 million |
| Number of people worldwide lacking access to electricity in 2021 | 675 million |
| Number of people worldwide lacking access to electricity in 2020 | 733 million |
| Number of people worldwide lacking access to electricity in 2015 | Less than 1 billion |
| Number of people worldwide lacking access to electricity in 2000 | 20% of the global population (75% had access) |
| Number of people worldwide lacking access to electricity in 1990 | At least 1 billion |
| Projected number of people lacking access to electricity in 2030 | 645 million (according to STEPS projections), 660 million (according to another source) |
| Number of people in sub-Saharan Africa lacking access to electricity in 2021 | 567 million |
| Number of people in sub-Saharan Africa lacking access to electricity in 2018 | 615 million |
| Number of people worldwide unable to use electricity | 1.18 billion |
| Minimum consumption levels necessary to be considered as having electricity access (rural households) | 250 kWh per year |
| Minimum consumption levels necessary to be considered as having electricity access (urban households) | 500 kWh per year |
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What You'll Learn
Global access to electricity
Access to electricity is a crucial indicator of poverty alleviation, economic growth, and improved living standards. While the share of people with access to electricity has increased globally over the last few decades, there are still significant disparities in access across regions and countries.
In 2020, it was reported that access to electricity had increased from 75% of the global population in 2000 to 90% by 2020. This progress continued into 2021, with the global electricity access rate reaching 91%. However, this still left 675 million people without access to electricity, mostly in least developed countries (LDCs) and sub-Saharan Africa.
The concept of "access to electricity" goes beyond the mere delivery of electricity to households. According to the International Energy Agency (IEA), it also includes a requirement for households to consume a certain minimum amount of electricity, which differs based on whether the household is in a rural or urban area. This threshold increases over time. As of 2019, the minimum consumption levels considered necessary to have access to electricity were 250 kWh per year for rural households and 500 kWh per year for urban households.
Despite the overall progress, there are still significant challenges in ensuring universal access to electricity. The COVID-19 crisis, for example, slowed down improvement rates in 2020, and international financial flows for clean energy in developing countries have been on a decreasing trend. Additionally, population growth in regions like sub-Saharan Africa has resulted in a stagnant number of people without access to electricity.
To achieve universal access to electricity by 2030, accelerated electrification, increased investments in renewable energy, and robust electrification plans are necessary. While some developing countries in Asia are on track to achieve universal access, countries in sub-Saharan Africa, such as the Democratic Republic of Congo, Ethiopia, and Nigeria, require considerable efforts to reduce energy poverty.
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Electrification in developing countries
The lack of access to electricity in developing countries is often due to a combination of factors, including poverty, remoteness, and insufficient infrastructure. The poorest communities, often located in remote areas, are the most challenging to connect, and the high costs of electricity networks and power generation pose significant financial barriers. International support and investment are crucial for these regions, but the trend of declining international public financial flows for clean energy in developing countries is concerning. This decline has been observed even before the COVID-19 pandemic and has continued in recent years, hindering the efforts to increase electrification in developing countries.
To address the issue of electrification in developing countries, a multi-faceted approach is necessary. Firstly, national governments must implement comprehensive electrification plans and allocate capital to access projects. This includes expanding grid infrastructure and adopting off-grid solutions such as mini-grids and stand-alone systems, which can provide electricity to remote areas that are difficult to reach with traditional grids. Additionally, international support in the form of concessional finance can help lower the investment risks for private investors, encouraging more investment in electrification projects.
Another critical aspect of electrification in developing countries is the adoption of renewable energy sources. While developing countries have experienced significant growth in renewable energy installation, there is still a need to accelerate the deployment of renewables and increase investment. This can be achieved through sustained policy momentum and the mobilization of public and private investment, specifically targeting renewable energy deployment and energy conservation in all sectors. By focusing on renewable energy, developing countries can not only increase access to electricity but also contribute to global sustainable energy targets.
The impact of electrification in developing countries extends beyond access to lighting and electrical appliances. Electricity is crucial for poverty alleviation, economic growth, improved living standards, and enhanced healthcare and educational opportunities. It can also support agricultural development, reduce gender inequality, and create business opportunities and jobs. Therefore, addressing the challenges of electrification in developing countries is essential to ensuring overall social and economic development and improving the lives of millions of people.
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Energy poverty
The World Economic Forum defines energy poverty as lacking access to sustainable modern energy services and products. It is not merely an issue of sustainability but also of equity, as access to energy is intertwined with economic and social development. Poorer countries often have inadequate energy services, exacerbating their challenges. Energy poverty has severe consequences, including physical and mental health issues, social exclusion, stigmatization, and impaired social, political, and economic opportunities.
Addressing energy poverty is crucial for several reasons. Firstly, energy is essential for improving living standards, economic growth, and poverty alleviation. Secondly, it is linked to other sustainable development goals, such as enhancing education, healthcare, agriculture, gender equality, and climate action. Thirdly, providing access to modern energy services can reduce the use of polluting fuels and contribute to environmental sustainability. Finally, energy access enables the development of remote off-grid communities, ensuring they are not left behind in terms of economic growth and social progress.
While the world has made progress in increasing access to electricity, energy poverty remains a significant challenge. The global electricity access rate increased from 87% in 2015 to 91% in 2021, yet 675 million people still lacked access, mostly in Least Developed Countries (LDCs). Sub-Saharan Africa faces particular challenges due to population growth, with 567 million people without access in 2021. To achieve universal access by 2030, efforts must be accelerated, especially in the heating and transport sectors, which have lagged in renewable energy adoption.
Digital tools and data analysis play a crucial role in addressing energy poverty. Gridded data on energy use helps understand the causes and impacts of energy poverty, while high-resolution energy poverty maps integrated with socioeconomic indicators enable more effective planning. Satellite image analysis provides valuable insights, revealing that energy-poor settlements are statistically indistinguishable from unpopulated areas in terms of light output. These advancements help identify local opportunities to reduce energy poverty and guide policy decisions to achieve sustainable energy targets.
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Energy efficiency
The global electricity access rate has been steadily increasing over the last few decades, rising from 87% in 2015 to 91% in 2021. This has provided access to almost an additional 800 million people. However, 675 million people still lacked electricity in 2021, and if the current pace continues, around 660 million people will still be without electricity by 2030.
There are many opportunities to improve energy efficiency across sectors, such as buildings, transportation, industry, and energy generation. For example, combined heat and power systems can capture waste heat from power plants and use it to provide heating, cooling, or hot water to nearby buildings, increasing energy efficiency from around 33% to up to 80%. Smart grids, more energy-efficient vehicles, and improved rail and truck transportation can also play a role.
To promote energy efficiency, governments can work with utilities, regional energy efficiency alliances, and other organizations. They can also invest in energy efficiency to achieve substantial energy cost savings and demonstrate environmental leadership. Additionally, governments can support the installation of efficient technologies and provide clear and accessible information to help consumers make informed choices. Regularly updated regulations can also help drive up average efficiency levels and bring innovations to market faster.
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Renewable energy
Access to electricity is an important social and economic indicator, crucial for poverty alleviation, economic growth, and improved living standards. While the global electricity access rate has increased from 87% in 2015 to 91% in 2021, serving an additional 800 million people, about 675 million people still lacked access to electricity in 2021, mostly in least developed countries.
The deployment of renewable energy technologies in the electricity sector has been promising, with strong growth in solar photovoltaics and wind power in recent years, building on the contribution of hydropower. Generation capacity has grown rapidly, driven by policy support and cost reductions. Notably, China has led in renewable electricity capacity additions, with almost 350 GW added in 2023, two-thirds of global deployment. India has also emerged as one of the top leaders in the world's most attractive renewable energy markets, with strong government support and a favourable economic situation.
However, challenges remain in the heating and transport sectors, where progress has been limited. To meet sustainability targets, sustained policy momentum is required to scale up renewable energy deployment and energy conservation in these sectors. International financial flows for clean energy projects in developing countries have been declining, impacting electrification efforts. To accelerate progress, electrification and increased investments in renewable energy are crucial.
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Frequently asked questions
As of 2023, around 750 million people worldwide do not have access to electricity, down from 840 million in 2017.
Between 2000 and 2020, access to electricity increased from 75% of the global population to 90%. This means that around 334,000 people gained access to electricity on any given day during this period.
Sub-Saharan Africa and developing countries in Asia have the lowest access to electricity. In 2017, 840 million people without access to electricity lived in sub-Saharan Africa. However, countries like India, Indonesia, and Bangladesh have recently achieved universal access.
The concept of "access to electricity" does not have a universally accepted definition. However, most interpretations include the availability of electricity, safe cooking facilities, and a certain minimum level of consumption. The International Energy Agency (IEA) defines access to electricity as including a minimum threshold of electricity consumption, which is higher for urban households than for rural households.
