9 Jul
2019
9 Jul
'19
10:53 a.m.
FYI
---------- Forwarded message ---------
From: Todd Moss (Energy for Growth Hub) <info(a)energyforgrowth.com>
Date: Tue, Jul 2, 2019 at 5:58 PM
Subject: The Hub in Axios | As global energy access improves, cost and
reliability lag
To: Michael Oghia <mike.oghia(a)gmail.com>
July 2, 2019
[image: Hub Logo]
Dear Michael,
Axios and the Axios Generate newsletter featured Todd's article this morning.
A link is here
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A184>
or the full piece is below. Please share this email with a colleague or
retweet below.
[image: Axios Logo]
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A193>
As global energy access improves, cost and reliability lag
By Todd Moss
Progress continues to be made on global energy access, with the latest
report
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A185>
from the International Energy Agency finding that 89% of the world’s
population is connected to electricity.
*The big picture: *These impressive, rapid gains have kept the world on
track toward the UN’s Sustainable Development Goal 7 (SDG7): modern energy
access for all by 2030. As household access improves, the agenda to combat
energy poverty is shifting to affordable and reliable access for business.
*Where it stands: *The number of people living without electricity has
dropped to 840 million, from 1.2 billion in 2010.
- Kenya and Bangladesh made the fastest progress over the past 8 years,
driven by aggressive government investments in last-mile connections.
- The greatest challenges will soon be limited to sub-Saharan Africa,
where the report projects that 90% of the world’s 650 million people still
without electricity access will live in 2030.
*But, but, but. *Residential electricity accounts for only 5% of global
energy consumption
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A186>
.
- Electricity at home has benefits, but impact studies from India
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A187>
and Kenya
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A188>
show that neither off-grid solar home systems nor on-grid connections for
the very poor increase incomes.
- Meanwhile, many middle-income countries at or near universal access
still suffer from dysfunctional power systems. Business surveys
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A189>
across Asia and Africa frequently cite high energy costs and unreliable
power among the greatest constraints to business productivity and, by
extension, job creation.
- A new World Bank report
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A190>
on electrification argues that policymakers need to shift strategy to
center on the "productive use" of electricity at affordable rates.
*Between the lines: *
- High relative energy costs make it harder for firms in regions like
sub-Saharan Africa to compete globally.
- Lack of reliability is even more damaging. Lost output from outages
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A191>
— in addition to the costs of backup systems — can be devastating for
competitiveness.
- Building an energy system for residential and business customers
should be mutually reinforcing. But the push for universal access in
Kenya
<http://energyforgrowth.acemlna.com/lt.php?s=3c228e556dbead3eb73c4d830785741e&i=27A41A2A192>
and other countries has at times strained electric grids and ended up
undermining reliability.
*What to watch:* As more countries approach universal access, they'll have
more latitude to set energy targets around cost and reliability that will
have a stronger impact on economic growth.
Energy for Growth Hub, 2055 L St NW, Washington, DC 20036, United States