CLASP’s new report offers an innovative approach to achieving universal electricity access faster and more sustainably through investments that improve access to energy-efficient appliances.
Globally, hundreds of millions of people lack electricity. Most solutions focus on extending power supply infrastructure, but in marginalised areas, low electricity demand makes the expense of such infrastructure hard to justify. Increasing the use of energy-efficient appliances in these areas can attract investments in electricity supply while delivering climate benefits, explains CLASP, an international nonprofit organisation. Achieving sufficient levels of appliance use to meet these goals would require allocating 15% of supply-side investments, or $38 billion USD, toward demand growth between now and 2030. The funding should focus largely on improving appliance affordability.
Key findings
The CLASP report had the following key findings:
- Energy-efficient appliances are essential energy infrastructure, critical for achieving universal energy access and meeting climate mitigation and adaptation goals.
- Bringing modern energy to the 666 million people who lack it (most of whom live in Sub-Saharan Africa) requires expanding power infrastructure to places with low electricity consumption.
- Increasing appliance access across Africa could generate demand for 342 terawatt hours of electricity annually, creating a market worth approximately $50 billion USD that would catalyse accelerated power infrastructure development.
- Focusing on expanding markets for energy-efficient appliances (as opposed to standard, less-efficient appliances) would provide many benefits, including avoiding an estimated 2.6 gigatons of CO2 equivalent emissions annually.
Recommendations
The CLASP report has the following recommendations:
- The IEA estimates that at least $50 billion USD of public investment annually is needed until 2030 to achieve universal energy access. CLASP analysis shows that 10–15% of this amount (about $7.5 billion USD annually, or $38 billion USD in total) should be devoted to improving appliance access.
- Relevant decision-makers should allocate 10–15% of power supply-side investments toward establishing sustainable electricity demand growth.
- Public institutions should target investments to overcome market failures that limit appliance use, in particular, a lack of affordability and consumer confidence.
- All stakeholders should prioritise energy-efficient appliances over standard, less-efficient appliances.
Download the CLASP report here: https://www.clasp.ngo/research/all/the-missing-piece-of-energy-access/
