Electricity for the Global Development

Introduction

Sustainable Development Goal 7 is one of the 17 Sustainable Development Goals established by the United Nations General Assembly in 2015. This goal aims to “Ensure access to Affordable, Reliable, Sustainable and Modern energy for all”. The benefits of adequate lighting and a reliable supply of electricity to homes, businesses and industries can help children to read and do homework longer, families can listen to the radio, watch television, or generate income. It also protects families from the pollution released by the alternative sources of lightening like kerosene which emits pollutants. The Goal 7 have 5 targets.

Targets for Goal 7

7.1. By 2030, ensure universal access to affordable, reliable and modern energy services.

7.2. To increase sustainability and the share of renewable energy in the global energy mix.?

7.3. Double the global rate of improvement in energy efficiency.

7.a. To enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil fuel technology, and promote investment in energy infrastructure and clean energy technology.

7.b. To expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small islands, developing states, and landlocked developing countries, in accordance with their respective programmes of support.

Out of above targets, our focus will be on target 7.1 and indicator 7.1.1.

Indicator 7.1.1 Access to electricity

This is measured as the share of people with electricity access at the household level. Access to electricity addresses major critical issues in all the three dimensions of sustainable development i.e., economic, social and environmental. The target has a wide range of social and economic impacts, including facilitating development of household base income generating activities and lightening the burden of household tasks. It comprises electricity sold commercially, both on-grid and off-grid.

Need for alternative electricity generating sources

As the population continues to grow its demands for cheap energy and as an economy reliant on fossil fuels is creating drastic changes to our climate. Investing in solar, wind and thermal power improving energy productivity, and ensuring energy for all is vital if we are to achieve SDG 7 by 2030. Expanding infrastructure and upgrading technology to provide clean and more efficient energy in all countries will encourage growth and help the environment. According to the World Bank Group, in order to achieve universal access to modern energy services, significant improvements in the enabling environments for relevant projects and programs must be created.

How much money required to achieve the targets?

As per finance committee report, 2015 the current estimates show that

• for the period from 2010 to 2030: Energy Access - $49.4 billion is required annually (current annual spending is $9 billion); focus should be in Sub-Saharan Africa, South Asia and East Asia & Pacific.
• Renewable Energy - $442-650 billion is required annually from a current baseline of $258 billion to reach the goal. Except for Europe all regions need to increase investment to meet targets. The largest annual funding gap by far is in developing Asia.
• Energy Efficiency - $560 billion is required annually to achieve the goal (current spending is $130 billion). Energy efficiency investment needs to increase by 4.3x relative to current levels, with the greatest opportunities in Europe, developing Asia and North America. In developing countries, particularly with energy supply and access deficits, investments in renewables and energy efficiency would also support access. The annual investments will be needed for the expansion of grid electrification, development of mini-grid and off-grid solutions in remote areas where extension of the main grid would not be the most economically attractive approach.

Current situation of its development

Using the latest available data from the United Nations for the indicator, it is found that the world continues to advance toward SDG7, but the efforts remain well below those required to reach the goal by 2030. The data and analysis of SDG7 targets in this brief have been seen in the light of COVID-19 pandemic.

• The global electricity access rate increased from 83 per cent in 2010 to 91 per cent in 2020. Over this period, the number of people without electricity shrank from 1.2 billion to 733 million.
• From 2018 to 2020, the electricity access rate rose by an average of 0.5 percentage points annually, compared to 0.8 percentage points between 2010 and 2018.
• At the current pace, only 92 per cent of the world’s population would have access to electricity in 2030, leaving 670 million people unserved.
• Due to economic pressures imposed by the COVID-19 pandemic, up to 90 million people connected to electricity in Africa and developing countries in Asia could not afford to have an extended bundle of services in 2020.
• Between 2010 and 2020, the proportion of people with access to clean cooking fuels and technologies increased from 57 per cent to 69 per cent.
• 4 billion people still relied on inefficient and polluting cooking systems in 2020.
• The share of renewables in total final energy consumption reached 17.7 per cent in 2019, 1.6 percentage points higher than in 2010.
• Global primary energy intensity (energy efficiency) improved from 5.6 megajoules per US dollar in 2010 to 4.7 in 2019, with an average annual improvement rate of 1.9 per cent.
• To meet energy efficiency target, the annual rate of improvement until 2030 will need to average 3.2 per cent a year.
• International public financial flows to developing countries in support of clean energy amounted to $10.9 billion in 2019, down by nearly 24 per cent from the previous year.
• The five-year moving average also decreased for the first time since 2008, from $17.5 billion for 2014–2018 to $16.6 billion for 2015–2019.
• Loans accounted for over 52 per cent of commitments in 2019. Grants comprised almost 17 per cent. Shares in collective investment vehicles grew to $191 million in 2019, up by 91 per cent from 2018.

Despite the recent acceleration in electrification, the world is still falling short of what is needed to achieve the goal of universal access to electricity by 2030. Reaching the target would require an average increase in access of at least 0.87 percentage points annually through 2030. Concentrated efforts are needed to close the access gap, particularly in Sub Saharan Africa. There is a need to update our policy framework to capture fast changing developments, such as innovative off-grid solutions and business models. Under current and planned policies, it is estimated that 620 million people will remain without access to electricity in 2030. As the COVID-19 pandemic has negatively impacted the pace of energy access, further acceleration of efforts will be needed to get the world on track toward universal access.

Suggestion

As the pandemic badly affected many of the countries, we need to push the development of the sustainable use of energy to reach its goal by:

• Embracing solar technologies
• Crowd fund energy projects
• Used water processing technologies
• Wind power for Home or Business

Electrifying the Sustainable Development Goals

The former?Secretary General of the United Nation, Ban Ki-Moon has said, “Energy is the golden thread that connects economic growth, social equity, and environmental sustainability. With access to energy, people can study, go to university, get a job, start a business -?and reach their full potential.” Energy is central to nearly every major challenge and opportunity the world faces today – security, climate change, food production, jobs or increasing incomes. Sustainable energy generates opportunities, transforms lives, economies and the planet. There are tangible health benefits to having access to electricity and a demonstrable improvement in well being. Energy access therefore constitutes a core component of the sustainable development agenda for energy.?

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