Challenges

Logan Webber

How can we ensure universal access to reliable electricity as global demand surges?

Rising Energy Demand

Energy Inequality

Climate Change

As the developed world moves toward electrification and clean energy technologies, emerging economies risk being left behind. This is most clearly seen in sub-Saharan Africa, where electricity use per capita has remained stagnant for over three decades. Today, more than 600 million people in the region still lack reliable access to electricity, severely limiting poverty alleviation, economic opportunity, and improvements to basic living standards. Similar access challenges persist in South and Southeast Asia, though recent economic growth has improved electrification rates in some areas. Still, stark global disparities remain.

Reliable access to electricity is crucial for unlocking human potential in the 21st Century and building a more aspirational future. However, over 600 million people in sub-Saharan Africa don’t have reliable access to electricity, severely impacting economic mobility in the region. Sources: Our World in Data, IEA Electricity 2025


Providing reliable electricity to an additional one billion people is now a central focus of global energy policy. The International Energy Agency (IEA) projects that emerging markets and developing economies — including China, India, and the broader non-OECD world — will account for 85% of global electricity demand growth through 2027. The rise of intermittent, carbon-free sources like wind and solar complicates this picture: while essential for decarbonization, they require grid stability and planning that many developing nations lack.

Global electricity demand increased roughly 2500 TWh between 2021 and 2024. This was largely attributed to growth in China, India, and other IEA “Emerging markets & developing economies (EMDE).” An even larger increase is forecasted for 2027, with additional demand from IEA “Advanced economies” (primarily OECD member nations). Much of this growth is attributed to demand from data centers to enable AI growth. Source: IEA Electricity 2025


Distributed Energy Resources (DERs) provide one possible solution to these problems. DERs are, according to the IEA, “small-scale energy resources usually situated near sites of electricity use, such as rooftop solar panels and battery storage.” (IEA) By decentralizing modular, small-scale electricity generation, DERs provide more flexibility to rural and underdeveloped areas, particularly where large-scale power transmission infrastructure is unavailable. DER systems may include small-scale wind, solar, fuel cells, microturbines, and energy storage closer to the end-users. Kenya’s “Last Mile Connectivity Program” incorporates DERs, such as off-grid solar devices and mini-grids, to lower the cost of connecting low-income households to electricity.

Bridging the energy access gap often requires capital and coordination that governments cannot supply alone. Public-private partnerships (PPPs) can de-risk large-scale electrification projects by combining public oversight with private investment and innovation. The African Development Bank’s “Desert to Power” initiative is one example, aiming to build 10 GW of solar capacity across the Sahel while boosting regional transmission and distribution capacity. Such targeted government initiatives are crucial to providing electricity access in areas without sufficient market forces. In a recent report, the International Energy Agency found that providing full energy access to all of Africa by 2030 would require an investment of $25 billion/year, which is roughly 1% of total energy investment globally, and “comparable to the cost of just one large liquified natural gas terminal investment.” Primary countries of interest for such programs are the Democratic Republic of the Congo, Ethiopia, Nigeria, Tanzania, and Uganda (IEA Africa 2022).

Expanding access to reliable electricity is not only a developmental imperative – it is a foundational step toward global energy justice

The IEA developed the Sustainable Africa Scenario (SAS) to outline a pathway to providing universal energy access, meeting climate pledges, and enabling clean energy transitions across sub-Saharan Africa by 2030. This high-renewables scenario with distributed energy resources (DERs) deployed across rural zones calls for high renewable energy investments to meet demand in rural and urban environments. Source: IEA Africa Energy Outlook 2022


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