Wiktor Wise
Asia is the world's most populous region, and while it has made significant progress in providing access to electricity for its citizens, millions are still living without it. The energy crisis triggered by the war in Ukraine has slowed down progress, and the number of people without electricity in 2023 stabilized at around 600 million. Despite this, Asia has seen the biggest decline in the number of people without electricity between 2000 and 2024, with the number dropping by nearly 90%.
| Characteristics | Values |
|---|---|
| Population without access to electricity in Asia | 150 million |
| Percentage of population without access to electricity in Asia | 2% |
| Population with limited access to electricity in Asia | 350 million |
| Percentage of population with access to electricity in Asia | 98% |
| Population with access to electricity in Asia | 4.5 billion |
| Percentage increase in access to electricity in Asia since 2010 | 19% |
| Percentage decrease in the use of solid fuels in Southeast Asia | 40% |
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What You'll Learn
The number of people without electricity in Asia
Asia is the world's most populous region, with nearly 1 billion people at the end of the 19th century. The number of people without access to electricity worldwide has dropped by more than half between 2000 and 2024, amounting to 737 million in the latter year. The biggest decline was recorded in the developing Asian region, where the population without access to electricity declined by nearly 90% in the same period. Almost 1 billion people have gained access to electricity in developing Asia since 2010, with 97% of the region having access in 2023 compared to 79% in 2010. Most of the progress occurred in India, Indonesia, and Bangladesh, with all three countries achieving near-universal access in recent years.
Despite this progress, the region is still unlikely to reach energy access targets by 2030. According to the Asian Development Bank, more than 350 million people in Asia and the Pacific have only limited access to electricity, and 150 million people still have no access at all. However, the number of people without electricity in 2023 stabilized at around 600 million, well above the number before the Covid-19 pandemic, thanks to record sales of SHS in major markets, notably Ethiopia, Kenya, and Nigeria.
Progress is stronger in Asia, where the rollout of new connection solutions was supported by more concerted policies and easier access to financing. As of 2022, two of the largest countries in developing Asia, India and Indonesia, reached universal electricity access. This has dramatically slowed down progress in the rest of the region since the pandemic as other countries have not managed to achieve significant progress.
Many developing countries in Asia are nearly on track to achieve universal access by 2030, leaving only 2% of the population without access. However, further efforts are needed in countries such as Afghanistan, Mongolia, and Pakistan. Ensuring universal access to electricity by 2030 will require an investment of USD 50 million each year on average from now. This includes costs for power generation, electricity networks, and decentralized solutions.
Access to electricity is an important metric to monitor, but it is insufficient to measure energy equity. For instance, many households may only consume the minimum threshold of electricity usage necessary to be considered 'electrified' due to personal finance constraints.
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Progress in Central and South Asia
Asia has made significant strides in providing access to electricity to its population. Between 2000 and 2024, the number of people without electricity in the developing Asian region declined by nearly 90%, the biggest drop globally. Two of the largest developing countries in Asia, India and Indonesia, achieved universal electricity access by 2022. Other countries, such as Bangladesh, Cambodia, and the Philippines, have also made notable progress in recent years. Overall, 97% of the region had access to electricity in 2023, compared to 79% in 2010.
However, progress has been uneven within the region, and some countries in Central and South Asia continue to face challenges. For instance, Afghanistan, Mongolia, and Pakistan require further efforts to achieve universal access. The South Asia Region (SAR) faces electricity shortages, underinvestment, and barriers to improving energy access. There are also financial challenges, as access to financing is often difficult for the least developed countries, where the access gap is the largest.
One potential solution to these challenges is expanding regional electricity trade in South Asia. South Asian countries exhibit a high potential for cross-border electricity trading due to diverse energy resources and seasonal variations in loads. Unrestricted electricity trade in the region during 2015–2040 could save US$226 billion in electricity supply costs and reduce power sector CO2 emissions by 8% in the same period.
Furthermore, the success of rapidly developing Southeast Asian countries in reducing the use of solid fuels is notable. The shift from nearly the entire population using solid fuels to just over half is a remarkable decline. This transition to non-solid fuels, such as natural gas and electric technologies, is essential for enhancing access to sustainable and healthier cooking options.
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The impact of the energy crisis
While the percentage of people without electricity in Asia is challenging to pinpoint, the number of people with access to electricity in developing Asia has increased significantly in recent years. Almost 1 billion people gained access to electricity in developing Asia between 2010 and 2023, with 97% of the region having access in 2023 compared to 79% in 2010. Most of the progress occurred in India, Indonesia, and Bangladesh, with the latter two achieving universal access by 2022.
Despite this progress, the energy crisis triggered by the war in Ukraine has had a significant impact on Asia. The number of people without access to electricity peaked in 2022 due to the crisis, and while the number stabilized at around 600 million in 2023, it remains well above pre-pandemic levels. The impact of the energy crisis goes beyond access to electricity, affecting various aspects of life and creating geopolitical implications. Here are some key impacts:
- Economic Costs and Development Setbacks: Energy crises can lead to economic downturns and hinder development. This is particularly true for Central Asian countries, which are vulnerable due to underdeveloped infrastructure and unstable energy reserves. The crisis can also impact a country's ability to attract investment, further exacerbating economic challenges.
- Social and Health Impact: Access to electricity and clean cooking fuels is essential for maintaining a good standard of living and promoting good health. Energy shortages can lead to power cuts and gas shortages, affecting households and businesses. This can result in difficulties in heating homes, cooking meals, and carrying out economic activities, directly impacting the well-being of individuals and communities.
- Geopolitical Risks: The energy crisis in Asia has created geopolitical implications, with Russia actively seeking to increase its influence in the region. For instance, Russia proposed a tripartite gas union with Kazakhstan and Uzbekistan to facilitate gas shipments, boosting its influence in Central Asia and counterbalancing Chinese dominance. However, Central Asian countries must navigate this complex situation carefully to avoid inviting excessive external influence, whether from Russia or China.
- Energy Security and Infrastructure: The energy crisis underscores the importance of energy security and the development of sustainable energy solutions. This includes transitioning to non-solid fuels, such as natural gas and electric technologies, and addressing underlying vulnerabilities in energy infrastructure. Asia, particularly Southeast Asia, has made remarkable progress in reducing the use of solid fuels.
- International Support and Collaboration: Addressing the energy crisis requires collective efforts and international support. While some countries in Asia have made significant progress towards universal access to electricity, others, such as Afghanistan, Mongolia, and Pakistan, require additional support and investment to achieve the same goal. Collaborative initiatives, such as renewable energy projects with China, can contribute to sustainable energy development in the region.
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The divide between wealthier and poorer nations
High-income and upper-middle-income economies in Asia are making more substantial strides in boosting renewable electricity-generating capacity, while lower-middle-income economies are progressing at a slower pace. Low-income economies, on the other hand, are regressing, according to UNESCAP. This divide is also influenced by the impact of the COVID-19 pandemic and the energy crisis triggered by the war in Ukraine, which led to record-high energy prices and set back progress in achieving universal and affordable energy access.
The Asian Development Bank reports that over 350 million people in Asia and the Pacific have only limited access to electricity, and 150 million people have no access at all. However, some countries in South Asia, such as Bangladesh and Sri Lanka, are highlighted as success stories, with dramatic increases in the proportion of the population gaining access to electricity.
Despite these disparities, overall progress in Asia is notable, with countries like India, Indonesia, and Bangladesh achieving near-universal access. The rollout of new connection solutions and ambitious government policies, such as the Indian Saubhagya scheme, have accelerated progress. Nonetheless, the challenge of providing power to poor and isolated rural areas remains, as it is expensive and logistically difficult.
To achieve universal access to electricity in Asia, continued efforts and investments are necessary. While the milestone of universal access is within reach for many countries, the energy crisis and economic shocks have underscored the need for international support and innovative solutions to bridge the gap between wealthier and poorer nations.
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Asia's transition to renewable energy
Asia has made significant progress in providing access to electricity to its population, with almost 1 billion people gaining access since 2010. In 2023, 97% of the region had access to electricity, compared to 79% in 2010. This progress has been particularly notable in India, Indonesia, and Bangladesh, with the latter two achieving universal electricity access by 2022.
However, Asia still faces challenges in ensuring universal access to electricity and transitioning to renewable energy sources. While the region has a diverse mix of energy sources, including competitive renewables, there is a heavy reliance on fossil fuels and coal-fired power plants, which are detrimental to the goal of decarbonization. Southeast Asian countries, in particular, have committed to decarbonizing by 2050 and have published national energy transition frameworks. Nevertheless, many lack concrete implementation plans and sufficient funding to move away from coal.
To achieve a successful energy transition, Asia needs to address several key areas. Firstly, there is a significant funding gap that needs to be bridged. The region requires at least $367 billion over the next five years to meet its decarbonization commitments, and a fivefold increase in clean energy investment by 2035. This includes investments in renewable energy sources such as solar, wind, and hydropower, as well as associated infrastructure to support greater shares of renewable energy.
Secondly, international cooperation and support are crucial. Initiatives such as the ASEAN Power Grid and the Laos-Thailand-Malaysia-Singapore Power Integration Project showcase the potential for cross-border collaboration in renewable energy. Additionally, organizations like the IEA are working closely with Southeast Asian countries to enhance energy security and accelerate clean energy transitions.
Lastly, a shift in mindset is necessary. Asia must balance immediate energy demands with long-term sustainability. This includes corporates actively decarbonizing their operations and driving commercially viable clean energy initiatives. By addressing these challenges collectively, Asia can accelerate its transition to renewable energy and secure a more sustainable future.
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Frequently asked questions
As of 2023, 2% of Asia's population is projected to be without access to electricity in 2030. However, this percentage is much lower than it was in 2010, when only 79% of the region had access.
Afghanistan, Mongolia, and Pakistan have been highlighted as countries that require further efforts to increase electricity access. The Asian Development Bank also reports that more than 350 million people in Asia and the Pacific have only limited access to electricity, with 150 million having no access at all.
India, Indonesia, and Bangladesh have achieved near-universal access to electricity in recent years, with the latter two countries increasing access from 60% in 2000 to 96% in 2020. The Lao People's Democratic Republic, the Philippines, Thailand, and Vietnam have also made significant progress toward universal electrification.
