Some facts and scenarios
- 1.6 billion people worldwide do not have access to electricity in their homes, representing more than one-quarter of the world1 population
- Four out of five people without electricity live in rural areas of the developing world, especially in peripheral urban and isolated rural areas
- The lack of electricity deprives people of basic necessities such as refrigeration, lighting and communication and, consequently, hampers development
- Climate change was recognised by the G8 at their Gleneagles Summit as a serious and long-term challenge that has the potential to affect every part of the globe. If we continue on present policies, global energy-related CO2 emissions are set to grow by 52% between 2003-302
- The consequences of climate change (drought, flooding, hurricanes, etc.) primarily affect the developing countries. Most of the major natural disasters in recent years have been concentrated in the least developed areas of the planet even though they only account for a comparatively limited proportion of global CO2 emissions (37%)3
- The financial implications for developing countries of increased reliance of imported energy has a great impact on their economies. Some of them spend up to 50% of their trade surpluses on energy imports4 . Of the 47 countries with per capital incomes of less than 2 dollars per day, 38 are net importers of oil, while 25 import all their oil.5
- World electricity demand is expected to double between now and 2030, with most of the growth occurring in developing countries6 where electrification rates are not keeping up with the population growth
- A total capital investment of 8.1$ trillion, equivalent to an average of $300 billion per year, is needed from 2003 to 2030 for the developing and transition economies to meet their energy needs, of which electricity comprises approx. 73%7
- World Energy Outlook 2006
The above facts and scenarios clearly show that there are crucial issues to be addressed by the international community and renewable energies are PART OF THE SOLUTION.
Renewable energy sources (RES) capture their energy from existing flows of energy, from on going natural processes and geothermal heat flows. Renewable Energy Technologies transform these energy flows into energy services to meet the needs of individuals for heat, electricity and transport
RES are currently contributing to the realization of important economic, environmental and social objectives by the enhancement of security of energy supply, the reduction of greenhouse gases and other pollutants and by the creation of employment which leads to the improvement of social welfare and living conditions
Furthermore, the investment in development, but also in renewables, from richer countries is constantly increasing and, therefore, offering new possibilities to bring renewable energy to rural areas. Due to the existent natural resources, renewable energies represent a fast growing and promising market for rural electrification
The improvement of living conditions and of the economical situation in the developing world will eventually allow for the creation of a classical and virtuous circle: creation of local enterprises and employment, new investment possibilities, new consumers, new markets, etc. Renewable energies could constitute a significant vector to initiate this circle and, at the same time, to obtain the desired results.
RES are critical for achieving sustainable development since they meet the criteria established within the World Summit on Sustainable Development (WSSD) 2002 as being “reliable, affordable, economically viable, socially acceptable and environmentally sound” energy resources
The production of electricity from RES in rural areas allows for the provision of key services such as lighting, refrigeration, education, communication, health services and power for income-generation. The provision of such services will contribute to the alleviation of poverty, illiteracy, hunger & thirst, disease, uncontrolled demographic proliferation, emigration etc.
The access to affordable and reliable energy services will contribute to the alleviation of poverty and the improvement of the economic growth prospects of developing countries. Further, the provision of modern energy services will facilitate the achievement of the United Nations Millennium Development Goals (MDGs).
The provision of electricity to rural areas through renewable energy sources will contribute to reverse the adverse trends showed by the facts and scenarios!
1Source: Clean Energy and Development: towards an investment framework – Environmentally and Socially Sustainable Development. Vice Presidency Infrastructure Vice Presidency. The World Bank, April 2006
IEA’s World Energy Outlook (WEO) 2005,
2Source: European Commission Annual Energy Review 2001
According to OECD’s calculations, a 10$ increase in the price of oil over a year would reduce growth in the EU by 2%. The impact is five to ten times greater in the energy-dependent developing countries
3Source: REN 21 (ENERGY FOR DEVELOPMENT:The Potential Role of Renewable Energy in Meeting the Millennium Development Goals)
4Source: IEA
5Source: IEA
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