Fast-tracking progress towards achieving SDG7

Spotlight on Solar is highlighting the urgent action needed to achieve universal energy access by 2030 and explores different initiatives which are focused on addressing this challenge.?

This week, we start off by looking at what we believe could be a game changing model for renewable energy access in the most remote, off-grid areas: Energy as a service.

This week world leaders turn their attention to the Sustainable Development Goals (SDGs) at the high level SDG Summit, and as High Level Political Forum (HLPF) review progress towards achieving universal access to electricity by 2030 (SDG 7), we all need to accept that the world is not on track. Urgent action is needed in order to fast-track progress towards achieving universal access to electricity by 2030.

As a response, SolarAid teams are on the ground right now pioneering game-changing projects which are designed to do just that, fast-tracking progress towards achieving universal access to electricity in high poverty locations within rural Malawi. Working in partnership with rural communities and using the latest solar technology, results to date have been nothing short of remarkable.

Current progress is too slow

According to the ‘Tracking SDG7 the Energy Progress Report 2023’ the reality is that we are currently on track to achieve only 15% of all assessable SDG7 targets. The International Energy Agency (IEA) meanwhile, estimates that to achieve full access by 2030, 100 million people must be connected each year.?

Electricity grids are simply not expanding that quickly. Expanding grids is expensive and many rural communities may not be reached for many decades. In short, the current levels of investment and connection rates fall far below what is needed, with the problem particularly acute across rural sub-Saharan Africa.

Ahead of the SDG Summit, UN Secretary-General António Guterres has called on countries to “make 2023 count” as he emphasised the need for governments, civil society and businesses to come together to set ambitious commitments to progress on interventions. It's clear, now more than ever, that there is an urgent need to design, test and implement models that fast-track energy access for low income households and communities. Models which demonstrate that universal access is possible.?

Solar lights and systems are transforming lives - but not reaching everyone

While millions of people are now using pico-solar lights and small solar home systems to access basic lighting and electricity, there are virtually no examples of achieving universal electrification across sub-Saharan Africa.

Many low-income households struggle to afford what the market currently has to offer, or cannot afford to take the risk of purchasing products on a Pay-As-You-Go (PAYG) basis, where there is a risk of systems being repossessed if they fall behind making payments. Many last-mile distributors, meanwhile, struggle to make a profit through the sale of solar lights and systems to hard-to-reach, low-income customers with limited finances.

The poorest and hardest-to-reach populations are left without access.

Recognising this fact, SolarAid, together with its partners, is working with rural communities to test interventions designed to fast-track access to electricity, prioritising reaching a high percentage of low income households in rural communities. This work led to the development of a new ‘Energy as a service’ model called ‘Light a Village’ which is using smart solar home systems to deliver promising results with the potential to scale across Malawi and beyond.

Game-changing action - providing Energy-as-a-service

In its simplest form, the Light a Village model overcomes traditional barriers by enabling access to Solar Home Systems (SHS) through a utility service. This means that customers are not being asked to purchase hardware, but rather pay to access the energy the hardware provides, which is exactly how most people with access to the electricity grid access and pay for electricity. Locally recruited and trained Community Service Representatives (CSRs) handle payments and customer service, all of which are managed using cloud based platforms which monitor system performance, payments and use.

The model directly addresses the financial barriers in two ways: firstly, it removes the need for financial deposits to be paid, which automatically prevents low income households from accessing systems, as is common in PAYG retail models. Secondly, daily payments are similar to those of candles, which are up to four times lower than those associated with PAYG models. Light a Village also addresses the ‘risk barrier,’ by removing the need to purchase the Solar Home System, ensuring that a deposit won’t be lost.

Impressive results?

The Light a Village programme was designed in collaboration with the local community with the ambitious goal of enabling 100% of the local population to have access to electricity. Results to date are remarkable, with over 2500 solar systems now installed and market penetration as high as 99% in some areas. Usage rates, which reflect the percentage of systems being used, are similarly high at 90%.

The fact that these results are recorded in an area where over 97% of the population live in extreme poverty, with households relying on a combination of candles, battery powered torches and burning grass for lighting, cannot be overstated.?

These results demonstrate that it is possible to achieve universal electricity access within a short timeframe, even within one of the poorest, most remote communities in one of the poorest countries in the world. In the next phase of the project, energy access will be expanded to include irrigation, to enable rural communities to increase rural agricultural productivity, benefiting the local economy.

SolarAid is inviting key stakeholders, from governments to commercial and development actors to collaborate and partner with us as we seek to test, replicate and scale this work and other game changing action across the continent. The SDG7 clock is ticking.?

John Keane , CEO, SolarAid

Podcast: FutureEnergyTalks with Reuters Plus

Listen to SolarAid’s Programmes and Partnerships Director Jamie McCloskey McCloskey discuss the energy transition and the importance of engaging rural communities first, on Reuters Plus and Masdar (Abu Dhabi Future Energy Company)’s new podcast series ‘Future Energy Talks’.

Article: Current decentralised solutions to energy access still leaving the poorest behind

Shining a light on the urgency of fast-tracking energy access in rural communities, in Energy Monitor , SolarAid CEO John Keane argues that although decentralised solar energy solutions will, and should, play a big part in achieving universal energy access, it won’t reach the hardest-to-reach by 2030. A rural utility extension model could be the answer to truly achieve universal energy access.?

Podcast: Permission to Fail

In SolarAid's podcast series, 'Permission to Fail', we explore trial, error, philanthropy and entrepreneurship when delivering solar energy to rural last-mile communities in sub-Saharan Africa. The Permission to Fail podcast is embracing failure in a true attempt to learn and succeed together.

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