FYI ---------- Forwarded message --------- From: Todd Moss (Energy for Growth Hub) &lt;info(a)energyforgrowth.com&gt; 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 &lt;mike.oghia(a)gmail.com&gt; 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