Today, 1.3 billion people still live without access to
electricity and 3 billion have no access to clean cooking fuels. As the energy
sector is transforming, there is a growing consensus that sustainable energy is
a catalyst for achieving most Sustainable Development Goals (SDGs): it is
crucial for better health, education, jobs, food production and conservation,
as well as water use and quality.
Access to energy is not just an end in itself. It is also a
stepping stone to overcome two major challenges the world is facing:
·
mitigating climate change and degradation of
natural resources
·
ensuring that all people everywhere are
able to take charge of their own lives in inclusive and open societies
Where does energy come into the picture?
Traditionally, having access to energy often meant you had
to live near a power grid or rely on diesel and kerosene or firewood. But
the urgency of combating climate change, combined with technological advances
and significant price reductions, has rapidly increased the availability and
affordability of renewable energy.
In addition, the move from centralized power distribution to
decentralized off-grid and mini-grid systems powered by renewables is gaining
strength. This would make much more energy available for disadvantaged
communities and remote areas.
To move forward, policies must become more supportive while
energy finance needs to fundamentally change. Currently, the main problem is
not a lack of finance, but how finance flows – mainly to on-grid systems in
higher income countries – while the greatest need is for off-grid systems in
lower income areas.
Sumba: a frontrunner example of energy transition
The Indonesian island of Sumba is a frontrunner example of
an ambitious and innovative energy transition, and it has since become living
proof that decentralized sustainable energy systems positively affect
green, inclusive growth. This initiative succeeded thanks to
its multi-stakeholder approach with governments (local and national),
private sector, and community-based organizations closely working
together.
Through decentralized mini-grid and off-grid solutions,
the project has provided energy access for more people than ever before. In
addition, Sumba stands as an inspiring example for local citizens and the
Indonesian government of the opportunities renewable energy brings.
Leaving no one behind
Transitioning to decentralized energy systems will be one of
the key success factors for achieving SDG7 before 2030. If we want to
create sustainable and resilient societies, we have to focus on the millions
that still lack even basic energy services, while also drawing
attention to the current inequalities in global energy systems. In particular,
we must empower women and youth to become entrepreneurs in the green
energy transition.
Working alongside local partners on the ground, we can make
sure that future energy systems are developed with the end-user in mind. This
means creating more enabling environments for energy entrepreneurship and
channeling both public and private finance into decentralized solutions
for low-income communities and remote rural areas.
In countries such as Kenya and Nepal, the government has
already successfully implemented financial pay-as-you-go models with
personalized repayment schemes. Yet these best practices need to materialize
faster and on a much larger scale if we are serious about leaving no one behind.
Multi–stakeholder partnerships
Another decisive component for universal energy access is
the presence of multi-stakeholder initiatives. Without partnerships, the
transition will struggle to pick up speed.
Equally important is the interlinkage with other SDGs.
Energy access is also vital for sustainable production, resilient water
resources and inclusive cities. Providing energy for households, communities
and workplaces forms the basis of thriving societies.
With great progress in many countries worldwide, there is
good reason to be optimistic. Now, we must stress the continued need for
enabling policies and investment in decentralized renewable energy
solutions to complement grid systems and bring everyone along in the green
energy transition.
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