Energy for All: Financing access for the poor
As energy is the source of life, so modern energy can be the source of a better life for all. The International Energy Agency’s World Energy Outlook (WEO) has focused attention on modern energy access for a decade, providing the international community with quantitative, objective analysis. This report, a special early excerpt of World Energy Outlook 2011, tackles the critical issue of financing the delivery of universal modern energy access.
In 2009, we estimate that $9.1 billion was invested globally in extending access to modern energy services. In the absence of significant new policies, we project that the investment to this end between 2010 and 2013 will average $14 billion per year, mostly devoted to new on-grid electricity connections in urban areas. This level of investment will still leave 1.0 billion people without electricity, and, despite progress, population growth means 2.7 billion people will remain without clean cooking facilities in 2030. To provide universal modern energy access by 2030 annual average investment needs to average $48 billoin per year, more than five-times the level of 2009. The majority of this investment is required in sub-Saharan Africa.
The barriers to achieving modern energy access are surmountable, as many countries have proven. Our analysis concludes that five actions are essential to transforming the situation.