"Energy for All: Financing access for the poor".

The main points highlighted in the report “Energy for All: Financing access for the poor” by International Energy Agency, October, 2011.  are given below:

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• In 2009 around US$ 9.1 billion was invested globally in extending access to modern energy services.

• Between 2010 and 2030 according to the new policy scenario of IEA, average US$ 14 billion per year will be invested mostly for new on-grid electricity connections in urban areas but it will still leave 1 billion people without electricity and 2.7 billion without clean cooking facilities in 2030.

• To achieve universal modern energy access by 2030 average annual investment needs to be around US$ 48 billion per year so additional US$ 34 billion per year is required. Therefore private, public and other sources of funding needs to be mobilized to fill the gap.

• According to IEA estimates US$ 18 billion per year is needed from multilateral and bilateral development sources, US$ 15 billion per year from government and US$ 15 billion per year from the private sector.

• Achieving universal energy access by 2030 will increase the global electricity generation by 2.5%, demand for fossil fuels by .8% and CO₂ emissions by 0.7% but would help prevent 1.5 million premature deaths per year.

• Developing countries importing oil are facing prices in excess of US$ 100 a barrel and their total expenditure for oil import was around US$ 100 billion or 5.5% of their GDP in 2011.

• Renewable energy will play a crucial role in energy for all scenario of IEA. For example 92% and 80% of the hydro power potential is untapped in Africa and Asia respectively.

• In the energy for all scenario around US$ 0.8 billion is required per year for advanced biomass cook-stoves and additional annual investment of US$ 12 billion per year is required for mini-grid electrification to connect additional 19 million people per year.

• Hybrid mini-grids are becoming competitive compared to 100% diesel based generation in Thailand.

• In case mini-grids are operated at cost recovery basis with a guaranteed margin they could be attractive for private sector or subsidies could be provided to enhance private sector interest in such projects.

• According to estimates of World Bank the potential for projects to serve both energy access and climate change mitigation goals in Africa id nearly 150 GW that could possibly generate US$ 98 billion in CDM revenue at offset price of US$ 10 per ton of CO₂ and require US$ 200 billion in investment.

Posted By:  

Ramesh Kumar Jalan, Ph.D.

Resource Person & Moderator

Climate Change Community, Solution Exchange,

United Nations Development Programme

New Delhi, India