Global energy access remains a critical challenge, with millions worldwide still lacking basic electricity. As of 2020, 733 million people lived without power, and 2.4 billion continued to rely on harmful cooking fuels. Current projections indicate that by 2030, an alarming 670 million individuals will still be unserved. This persistent energy poverty not only hinders socio-economic development but also exacerbates environmental issues. Addressing this requires a concerted global effort, focusing on accelerated renewable energy development and robust policy support. This article delves into the complexities of this crisis, the impact of recent global events, and the urgent need for sustainable solutions to achieve universal energy access.
These alarming figures are drawn from the authoritative Tracking SDG 7 – The Energy Progress Report 2022, a collaborative effort by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO). This report underscores the ongoing struggle to achieve Sustainable Development Goal 7 (SDG7), particularly in ensuring universal energy access.
The Impact of the COVID-19 Pandemic on Global Energy Access
A cornerstone of sustainable development, Sustainable Development Goal 7 (SDG7) aims to guarantee universal access to affordable, reliable, and modern energy services by 2030. Unfortunately, the unprecedented global challenges posed by the COVID-19 pandemic have severely impeded progress towards this vital objective, demonstrating a significant impact of COVID-19 on energy access.
While global electrification rates saw significant progress from 2010 to 2020, increasing from 83 percent to 91 percent and bringing electricity to an additional 1.3 billion people, the pace has dramatically decelerated. The number of people without electricity decreased from 1.2 billion in 2010 to 733 million by 2020. However, the impact of the COVID-19 pandemic has been profound, leading to suspended activities, disrupted supply chains, and redirected financial resources. This has directly slowed SDG7 implementation, pushing 90 million individuals in Africa and Asia, who previously had power, back into energy poverty. The ongoing Russia-Ukraine war has further exacerbated the situation, driving a sharp increase in power prices globally.
The proportion of the world’s population with electricity has increased, but many areas, particularly in Africa, still lack access (Internet illustration).
Africa remains the most energy-poor continent, with the largest populations lacking electricity. Notable examples include Nigeria (92 million people), the Democratic Republic of the Congo (72 million people), and Ethiopia (56 million people), underscoring the urgent need for rural electrification initiatives and robust clean energy investment across the continent.
Achieving equitable electrification rates demands strong policy frameworks and substantial financial assistance, ensuring that no one is left behind, especially in the most vulnerable and remote communities. The report starkly warns that without intensified efforts to reach these underserved areas, an estimated 670 million people will remain without electricity by 2030, highlighting a critical failure in global sustainable development goals. This necessitates a renewed focus on how to achieve SDG7 goals more effectively.
Accelerating Renewable Energy Development is Crucial
Despite global setbacks, renewable energy development continues its rapid ascent. Between 2015 and 2020, renewable energy capacity per capita grew at a compound annual growth rate (CAGR) of 9.5 percent, reaching an impressive 246W by 2020, with an annual growth rate of 11.6 percent. Even amidst project stalls due to COVID-19, renewables constituted over 80% of all new power capacity installed in 2020. Projections from the International Energy Agency (IEA) and IRENA emphasize that solar and wind power will drive the majority of this growth, offering viable climate change solutions. However, rising commodity prices and trade restrictions pose risks by increasing manufacturing and transportation costs. The report highlights that achieving SDG7 goals, specifically Goal 7.2 on renewable energy proportion and the Paris Agreement targets, necessitates greater policy support and increased private capital mobilization for clean energy investment.
Stronger policy support and increased private capital mobilization are crucial for advancing renewable energy projects (Illustration).
The International Energy Agency (IEA) projects that annual clean energy investment must reach $1.7 trillion by 2030, an 80% increase from 2020, under its Stated Policies Scenario (STEPS). To achieve Net Zero Emissions (NZE) by 2050, the IEA estimates this investment needs to triple to an ambitious $4 trillion annually by 2030, primarily targeting renewable energy and efficiency solutions. Similarly, IRENA’s 1.5°C scenario suggests annual clean energy investment could exceed $5 trillion, representing a 60% surge over current trajectories, underscoring the scale of energy transition required for sustainable development.
A particularly concerning metric for progress towards SDG7, specifically Goal 7.2, is the proportion of renewable energy in total final energy consumption (TFEC). Despite the absence of explicit measurable milestones for SDG 7.2, expert analyses indicate that current trends are insufficient to meet the ambitious targets. Therefore, accelerating the absorption of renewable energy into global grids is imperative to stay aligned with the broader goals of energy transition and addressing climate change solutions effectively.
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In Vietnam, the national grid power system has successfully ensured that 99.47 percent of households, including 99.18 percent of rural households, have access to electricity. This achievement positions Vietnam to complete its 2020 roadmap and remain on track to meet the 2025 and 2030 milestones for SDG7’s Goal 7.1. Regarding Target 7.2, which focuses on a significant increase in the proportion of renewable energy in total primary energy consumption, Vietnam’s National SDGs Report 2020 indicates that the country is set to complete its established roadmap for renewable energy development. However, the report also identifies persistent challenges in Vietnam’s SDG7 implementation. These include low energy efficiency in certain sectors, inadequate mechanisms for mobilizing investment capital for renewable energy, and limited infrastructure and technology for clean and sustainable energy sources. Critically, approximately 1% of households, primarily in remote and rugged terrain areas, still lack access to clean and sustainable energy. This highlights an ongoing need for focused rural electrification efforts. With a steadfast mission to “Develop clean energy for the green environment and sustainable development,” Vu Phong Energy Group actively contributes to SDG7. The group is deeply involved in developing renewable energy projects across Vietnam and implements community sharing programs that bring solar power to underprivileged households, especially in rural and border areas with no grid connection. Vu Phong Energy Group demonstrates its commitment to addressing energy poverty and promoting a cleaner, more sustainable future. Discover the extensive renewable energy projects Vu Phong Energy Group has successfully implemented. |
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