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Progress on global energy goals slow, but strong gains in countries show promise

MD Staff

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The world is not on track to meet the global energy targets for 2030 set as part of the Sustainable Development Goals, but real progress is being made in certain areas – particularly expansion of access to electricity in least developed countries, and industrial energy efficiency, according to a new report from five international agencies.

Renewable energy is making impressive gains in the electricity sector, although these are not being matched in transportation and heating – which together account for 80% of global energy consumption.

While global trends are disappointing, recent national experiences around the world offer encouraging signs. There is mounting evidence that with the right approaches and policies, countries can make substantial in clean energy and energy access, and improve the lives of millions of people.

Tracking SDG7: The Energy Progress Report, launched at the Sustainable Energy for All Forum today, is the most comprehensive look available at the world’s progress towards the global energy targets on access to electricity, clean cooking, renewable energy and energy efficiency.

The following are some of the main findings of the report. Findings are based official national-level data and measure global progress up to 2015 for renewable energy and energy efficiency, and 2016 for access to electricity and clean cooking.

Access to Electricity

  • One billion people – or 13% of the world’s population – still live without electricity. Sub-Saharan Africa, and Central and South Asia continue to be the areas of the world with the largest access deficits. Almost 87% of the world’s people without electricity live in rural areas.
  • The number of people gaining access to power has been accelerating since 2010, but needs to ramp up further to achieve universal access to electricity by 2030. If current trends continue, an estimated 674 million people will still live without electricity in 2030.
  • Some of the strongest gains were made in Bangladesh, Ethiopia, Kenya and Tanzania, which all increased their electricity access rate by 3% or more annually between 2010 and 2016. Over the same period, India provided electricity to 30 million people annually, more than any other country. Sub-Saharan Africa’s electrification deficit has begun to fall in absolute terms for the first time.
  • Tens of millions of people now have access to electricity through solar home systems or connected to mini-grids. However, these remain concentrated in about a dozen pioneering countries where penetration of solar electricity can reach as much as 5-15% of the population.

Clean Cooking

  • Three billion people – or more than 40% of the world’s population – do not have access to clean cooking fuels and technologies. Household air pollution from burning biomass for cooking and heating is responsible for some 4 million deaths a year, with women and children at the greatest risk.
  • Parts of Asia have seen access to clean cooking outpace growth in population. These positive outcomes were driven largely by widespread dissemination of LPG or piped natural gas. In India, Pakistan, Indonesia and Vietnam, the population with access to clean cooking technologies grew by more than 1% of their population annually.
  • In Sub-Saharan Africa, however, population growth in recent years has outstripped the number of people gaining access to clean cooking technologies by a ratio of four to one.
  • Clean cooking continues to lag the furthest behind of all the four energy targets, due to low consumer awareness, financing gaps, slow technological progress, and lack of infrastructure for fuel production and distribution. If the current trajectory continues, 2.3 billion people will continue to use traditional cooking methods in 2030.

Energy Efficiency

  • There is mounting evidence of the uncoupling of growth and energy use. Global gross domestic product (GDP) grew nearly twice as fast as primary energy supply in 2010-15. Economic growth outpaced growth in energy use in all regions, except for Western Asia, where GDP is heavily tied to energy-intensive industries, and in all income groups. However, progress continues to be slow in low income countries, where energy intensity is higher than the global average.
  • Globally, energy intensity – the ratio of energy used per unit of GDP – fell at an accelerating pace of 2.8% in 2015, the fastest decline since 2010.  This improved the average annual decline in energy intensity to 2.2 % for the period 2010-2015. However, performance still falls short of the 2.6% yearly decline needed to meet the SDG7 target of doubling the global rate of improvement in energy efficiency by 2030.
  • Improvement in industrial energy intensity, at 2.7% per annum since 2010, was particularly encouraging, as this is the largest energy consuming sector overall. Progress in the transport sector was more modest, especially for freight transportation, and is a particular challenge for high-income countries. In low and middle-income countries, the energy intensity of the residential sector has been increasing since 2010.
  • Six of the 20 countries that represent 80 percent of the world’s total primary energy supply, including Japan and the US, reduced their annual primary energy supply in 2010-15 while continuing to grow GDP – indicating a peak in energy use. Among the large energy-intensive developing economies, China and Indonesia stood out with annual improvement exceeding 3 percent.

Renewable Energy

  • As of 2015, the world obtained 17.5% of its total final energy consumption from renewable sources, of which 9.6% represents modern forms of renewable energy such as geothermal, hydropower, solar and wind. The remainder is traditional uses of biomass (such as fuelwood and charcoal).
  • Based on current policies, the renewable share is expected to reach just 21% by 2030, with modern renewables growing to 15%, falling short of the substantial increase demanded by the SDG7 target.
  • Rapidly falling costs have allowed solar and wind to compete with conventional power generation sources in multiple regions, driving the growth in the share of renewables in electricity to 22.8% in 2015. But electricity accounted for only 20% of total final energy consumption that year, highlighting the need to accelerate progress in transport and heating.
  • The share of renewable energy in transport is rising quite rapidly, but from a very low base, amounting to only 2.8% in 2015. The use of renewable energy for heating purposes has barely increased in recent years and stood at 24.8% in 2015, of which one third was from modern uses.
  • Since 2010, China’s progress in renewable energy alone accounted for nearly 30% of absolute growth in renewable energy consumption globally in 2015. Brazil was the only country among the top 20 largest energy consumers to substantially exceed the global average renewable share in all end uses: electricity, transport and heating. The UK’s share of renewable energy in total final energy consumption grew by 1% annually on average since 2010 – more than five times the global average.

Tracking SDG7: The Energy Progress Report is a joint effort of the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO).

“It is clear that the energy sector must be at the heart of any effort to lead the world on a more sustainable pathway,” said Dr Fatih Birol, the Executive Director of the International Energy Agency (IEA). “There is an urgent need for action on all technologies, especially on renewables and energy efficiency, which are key for delivering on three critical goals – energy access, climate mitigation and lower air pollution. The IEA is committed to leading this agenda and working with counties around the world to support clean energy transitions.”

“Falling costs, technological improvements and enabling frameworks are fueling an unprecedented growth of renewable energy, which is expanding energy access, improving health outcomes, and helping to tackle climate change, while also creating jobs and powering sustainable economic growth,” said IRENA Director-General Adnan Z. Amin. “At the same time, this tracking report is an important signal that we must be more ambitious in harnessing the power of renewable energy to meet sustainable development and climate goals, and take more deliberate action to achieve a sustainable energy future.”

“This detailed report describing the progress so far on SDG7 is a testament to the collaboration of the five international agencies on providing quality and comprehensive data and delivering a common message regarding the progress towards ensuring access to affordable, reliable, sustainable and modern energy for all,” said Stefan Schweinfest, Director of the Statistics Division of UN DESA. “Still, there is a need for improving statistical systems that collect energy information in those countries where the most pressing energy issues remain to be addressed. Better data are needed to inform policy accurately, particularly developing countries, least developed countries, landlocked developing countries, and small island developing States. For this, investments in energy statistical systems are essential.”

“The experience of countries that have substantially increased the number of people with electricity in a short space of time holds out real hope that we can reach the billion people who still live without power,” said Riccardo Puliti, Senior Director for Energy and Extractives at the World Bank. “We know that with the right policies, a commitment to both on-grid and off-grid solutions, well-tailored financing structures, and mobilization of the private sector, huge gains can be made in only a few years. This in turn is having real, positive impacts on the development prospects and quality of life for millions of people.”

“It is unacceptable that in 2018, 3 billion people still breathe deadly smoke every day from cooking with polluting fuels and stoves. Every year, household air pollution kills around 4 million people from diseases including pneumonia, heart disease, stroke, lung disease and cancer,” said Dr Maria Neira, Director, Department of Public Health, Environmental and Social Determinants of Health, at the World Health Organization (WHO). “By expanding access to clean affordable household energy, the global community has the power to lift a terrible health burden from millions of marginalized people – in particular women and young children who face the greatest health risks from household air pollution.”

“As we take stock of progress towards the global goal on sustainable energy, this latest data clearly shows more action and political leadership is needed if we are to live up to our promise to leave no one behind,” said Rachel Kyte, Special Representative of the UN Secretary-General and CEO of Sustainable Energy for All. “To meet 2030 targets, we must make every unit of energy work harder. We need to increase investment in the technologies and business models that make electricity access affordable for everyone, place even bigger bets on the remarkable capacity of renewable energy and build big markets for clean fuels and cooking access. World leaders put the promise of leaving no one behind at the heart of the Sustainable Development Goals, and now is the time for that promise to become reality.”

It is the fourth edition of this report, formerly known as the Global Tracking Framework (GTF).  The report can be downloaded at http://trackingSDG7.esmap.org/  Funding for the report was provided by the World Bank’s Energy Sector Management Assistance Program (ESMAP).

IEA

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Energy

Off-grid Renewables are Growing, Bringing Socio-economic Benefits to Millions

MD Staff

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Off-grid renewable energy has witnessed spectacular growth over the last decade. Since 2008 capacity has trebled and the number of people in rural communities served by the technology has witnessed six-fold growth. Today, up to 133 million people are receiving life-changing access to low-cost, secure renewable energy and benefit from the socioeconomic impact access delivers. Global off-grid investments in 2017 reached USD 284 million.

These findings feature in a new IRENA brief launched during the UN High-Level Political Forum in New York. The paper, entitled: Off-grid Renewable Energy Solutions, Global and Regional Status and Trends, builds on IRENA’s statistical analysis to offer a global picture of the sector’s trajectory and impact. The data highlights the extent to which off-grid renewables are emerging as a mainstream solution to the expansion of electricity services all over the world, contributing to sustainable development goal 7 (SDG 7) by broadening the reach of electricity beyond existing grid infrastructure.

“Off-grid renewable energy is an important contributor to energy access across the developing world having witnessed widespread, rapid growth in deployment over the last few years,” said Dr. Rabia Ferroukhi, Deputy Director of the Knowledge, Policy and Finance at IRENA.  “Our analysis captures this momentum whilst shedding light on the need to step-up efforts towards 2030 Sustainable Development Goals.”

Africa has emerged as a dynamic, fast-moving hub for off-grid renewables. The development of solar lighting solutions and innovations in deployment and financing models, such as pay as you go options and mobile payment platforms have contributed to Africa’s rapid advances. The continent’s off-grid industry now serves around 53 million people – the equivalent of the entire population of South Africa – up from just over two million in 2011.

The brief identifies Asia as a global leader in off-grid renewables capacity deployment. Today, up to 76 million people across the continent may now benefit from such power sources.

South America, home to some of the highest rates of electricity access in the developing world, has also witnessed off-grid renewable growth the brief suggests, where the technology is considered key to ‘last mile’ electricity access.

Off-grid renewable energy solutions are being deployed to provide electricity services for a wide range of end-uses, including for powering agriculture, telecommunication infrastructure, healthcare centres, schools, and rural enterprises. The paper emphasises that linking delivery of off-grid solutions to energy service delivery can unlock substantial socio-economic benefits, contributing to multiple SDGs.

While dramatic cost reductions have been the primary driver of this acceleration, it is the multifaceted socioeconomic benefits that provide the greatest incentives for its deployment. Renewable energy’s centrality to the SDG 7 goal on universal access to clean, reliable and affordable energy against a backdrop of a billion people who still live without it, is unquestionable. However, beyond energy itself renewables are a key contributor to sustainable development, generating jobs, stimulating growth, ensuring resource security and improving health.

The paper notes that in Bangladesh, around 133 000 jobs have been created through a Solar Home System programme and an off-grid renewables initiative in Rwanda aims to generate 7 000 jobs whilst delivering energy access to almost 80 000 people. Similarly, incomes in rural households benefit from lower cost solar lanterns, and remote health and educational facilities are enhanced through consistent availability of power.

“Renewables are a central pillar of SDG 7 and represent one of the most effective and economicmeans available in the pursuit of universal energy access,” said Rabia Ferroukhi, Deputy-Director of Knowledge Policy and Finance at IRENA. “Yet beyond this, we are now beginning to truly understand the way in which distributed renewable electricity is transforming the lives of those receiving from it, bringing stability and opportunity to millions of people around the world.”

Read the brief on the Off-grid Renewable Energy Solutions and the six case studies developed to showcase the socioeconomic impact of off-grid renewables in South East Asia.

IRENA

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CPEC and Pakistan-China Energy cooperation

Venita Christopher

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The demands of global energy are substantially rising day by day in the 21st century, whereas the dependency on fossil fuels like coal, oil and natural gas have become a serious concern which is about 80% of the world’s primary source of energy. The concerns about fossil fuels are due to their ever rising prices and their negative impact on the environment due to the harmful emission of greenhouse gases. Therefore, in this context the reliance on nuclear power energy is considered by various countries, including Pakistan, as a good alternative option of energy supply, which is comparatively cheaper also.

Pakistan has great strategic importance in South Asia because of its location, its dynamic young population, its vibrant economic potential, being a nuclear power, and now being a strategic partner of China in the backdrop of the construction of the China-Pakistan Economic Corridor (CPEC).The CPEC is a flagship project of China’s Belt and Road (B&R) initiative and the completion of CPEC is likely to bring major economic advantages to China, Pakistan and South Asian region.

Like many other countries, for its economic development based on enhancing its industrial and agricultural production, energy is very important for Pakistan and it needs to address its current energy crises on an urgent basis. In this context signing of the CPEC agreement with China by Pakistan in 2015 is considered as a milestone achievement, as it includes many electricity generation projects, which will help address energy shortages of Pakistan.

Apart from developing other means of electricity generation in Pakistan, China is already helping Pakistan in nuclear energy production by supplying nuclear power reactors, under IAEA safeguards based on agreements signed in the field of nuclear cooperation. Apart from installing Chashma 1 and Chashma 2 power plants, which are already producing electricity in Pakistan, in 2017 China has signed another deal with Pakistan to also install Chashma 3 and Chashma 4 power plants. Out of these each power plant, after completion, will produce 1000 megawatts of electricity. As part of the CPEC project, China is also building two HUOLONG ONE nuclear reactors in Karachi that will become ready to use by 2021.

After signing the CPEC agreement China is very keen to help Pakistan in the energy production, as energy is required not only for the construction of CPEC projects but also for its subsequent operation. This is because China is also going to get huge trade benefits by trading with the outer world using the CPEC. In other words, apart from helping its friend Pakistan in energy production, this cooperation also serves China’s economic interests in a major way. In this context, the CPEC is a win-win project that serves Pakistan and China’s interest in a similar way.

As China is doing a lot to advance its interests by expanding its economic production by basing on its CPEC related exports, Pakistan should also take the CPEC as a big opportunity to develop its economy to become economically self reliant. In this context, it should focus on completing the construction of the CPEC and its related energy projects on time, so that it addresses its energy shortages and quickly moves on towards its economic development.

In fact, it is more important for Pakistan to work harder for completion of the CPEC related projects and make use of the CPEC to advance its industry and agriculture, increase trade, attract foreign direct investment and increase its revenues. This is important because Pakistan’s economy needs a major boost to recover from its ever increasing budget deficits, inflation, domestic and foreign debt situations,widening gap of balance of payments due to constantly declining exports and falling foreign exchange reserves.

This is also important to repay the domestic debt and foreign debt in order to save Pakistan from becoming a defaulting state in the coming years. Above all it is necessary to avail the opportunity of reaping CPEC related economic advantages to develop Pakistan’s economy in a reasonable time frame to meet its aforementioned obligations and finally to bring prosperity to Pakistan and its people.

In the light of above it is logical to say that Pakistan and China’s cooperation in the energy field is beneficial for both countries and CPEC is a project that helps Pakistan in meeting its energy shortages, and it will be equally beneficial to Pakistan and China to advance their economic interests. Rather CPEC related energy projects and trade will be much more beneficial to Pakistan to meet its above discussed economic challenges.

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The Race for Universal Energy Access Speeds Up

MD Staff

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Fondly referred to as “mini Africa” by local residents, Sabon Gari is one of Nigeria’s biggest markets, where you can find anything from electronics and clothes to toys and hardware. Shops here used to depend on expensive diesel generators for electricity. But today, thanks to a new solar mini-grid, shop owners say they now spend just a fraction of what they used to previously on electricity.

More than 5000 miles (8000 kms) away, in the remote island of Monpura in Bangladesh, Lhota Khatun runs her own sewing business out of her bedroom, thanks to a solar mini-grid installed on the island. Since 2016, she has had dependable electricity access that helps her work at night, after her children are in bed.

Sabon Gari and Monpura represent communities around the world that, today, are more productive and prosperous through reliable and affordable access to electricity.

Energy is at the heart of development. Access to electricity makes communities safer, helps small businesses thrive and powers essential services such as schools and clinics. It also helps provide a conducive environment for investments, innovations and new industries that spur growth and provide jobs for entire economies.

The World Bank constantly works with governments to tailor solutions to suit every country’s unique energy needs. These approaches, led by countries, are working.

For example, a new $350 million electrification program in Nigeria is expected to attract $410 million in private investment, and create a vibrant market for mini grid and off-grid energy solutions.

In Kenya, the World Bank supports more than $1.3 billion of generation, transmission, distribution and off-grid investments, helping the country more than double electricity access rates from 23 percent in 2009 to 56 percent in 2016. A new $150 million off-grid project is designed to provide service to another 240,000 households living in more remote and poorer areas.

And in Bangladesh, the World Bank supports the largest off-grid solar program in the world, powering over four million households through solar home systems, 1,000 solar irrigation pumps, and 13 solar-based mini-grids. More than 18.5 million people in rural Bangladesh now have reliable access to solar-powered electricity through this program.

Altogether, between 2014 and 2017, the World Bank helped deliver new and improved electricity services to more than 45 million people.

Progress has sped up.  Sub-Saharan Africa’s electricity deficit has begun to close for the first time.  India is bringing electricity to 30 million people a year – more than any other country.  And a number of pioneering countries have put in place approaches that have allowed them to rapidly expand electricity services. Among these are a commitment to both grid and off-grid electrification efforts, long-term national electrification planning, and a focus on the quality and affordability of service.

The success of these approaches has led to a jump in demand from countries for support for energy access programs, which is being reflected in the World Bank’s portfolio.  In recent years the World Bank provided an average of $900 million a year in energy access financing.  This grew to $1.4 billion last year.

Support to mini-grid and off-grid programs is growing the fastest, from roughly $200 million a year in recent years to $600 million last year. The World Bank is on track to provide 20 percent of the projected investment needed for solar home systems in developing countries over the next four years.

The recent progress on energy access will be discussed as part of the review of global energy targets under Sustainable Development Goal 7 (SDG7) at the UN High-Level Political Forum. Underpinning these discussions is the fact that while progress is picking up towards universal energy access, more than 600 million people will still not have electricity access in 2030 if current trends persist.  That could have a devastating impact on health, education and economic prospects for a significant part of the world’s population.

Accelerating progress will require the private sector to play a key role. The World Bank is actively mobilizing private investment for energy access projects by helping to put in place conducive policies, demonstrating viable business models, and providing targeted funding to leverage commercial financing.

In Haiti, a project supported by the World Bank and Climate Investment Funds establishes a fund that will provide grants and loans to mini- and off-grid businesses. The project is expected to eventually mobilize $45 million in private financing and help bring electricity to 10 percent of Haiti’s population.

Innovation and technology are also playing a key role. Geospatial mapping is changing the face of electricity planning, with unprecedented detail and accuracy on unserved populations. For example, the Nigerian Rural Electrification Agency is mapping more than 200 sites for mini-grid development based on this approach.

The World Bank is committed to help countries harness these innovations, whether technological, financial or on the policy side, to accelerate the expansion of reliable and affordable electricity services, and to end energy poverty once and for all.

World Bank

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