Energy access: a prerequisite to achieving the Millennium Development Goals

About 1.6 billion people globally lack access to electricity and about 2.5 billion rely on traditional fuels as their primary source of energy. Energy is not part of the Millennium Development Goals (MDGs) but it is important for achieving them because it promotes economic development and can help alleviate poverty.

A report from the Global Network on Energy for Sustainable Development uses Brazil, Kenya, Senegal and South Africa as case studies to argue that access to modern forms of energy enables countries to achieve the MDGs and increases their capacity to sustain them. The research shows that access to clean forms of electricity can contribute to education and improved health outcomes, which are integral goals of the MDGs.

A lack of financial resources for modern forms of energy is currently hindering progress towards the MDGs. Multilateral investment in energy projects has recently declined and most private investment is channelled into other infrastructure sectors. Therefore, new forms of financing need to be explored.

The study finds that:

• It is difficult to move from an energy price that reflects social and political concerns to one that reflects full market value.
• Private participation can speed up energy development but governments must analyse risk, social benefits and employment opportunities.
• Public money can be used for energy projects that support the MDGs. However, it is important that policies and subsidies benefit the poorest people.
• Special projects are needed for poor people, which might involve free energy supply. Other forms of infrastructure, such as roads, should be provided to support rural entrepreneurs.
• In order to deliver clean energy to poor people, different kinds of technology are needed, depending on cost-effectiveness and what is already available.
• Although few rural electrification programmes in developing countries have been successful, the case studies point to some successes, which have promoted non-farm industries, employment and economic growth.

The study asserts that responsibility for ensuring energy access cannot be left to the energy supply sector alone. Access strategies need to be integrated with policies to improve livelihoods, including poverty reduction strategy papers, rural development, land-use policies, and the agriculture, health care, and small and medium enterprise sectors. Furthermore:

• The role of governments is significant for strong energy policy, finance and exploiting opportunities; development programmes perform best when they receive institutional support.
• Governments need a policy for energy that considers productive sectors of the economy as well as households. A clear distinction must be made between energy for MDGs and energy for industrialisation or export.
• Special options for fuel sources for cooking should be provided for poor people. Sustainable and modern forms of fuel (such as liquid petroleum gas) and improved cooking stoves should be a priority.
• Financial and institutional reforms should be carried out to promote alternative, more sustainable forms of energy, such as biogas and renewable energy. Appropriate technology should be selected with suitable technical back-up and financing systems.
• Partnerships between various actors, both local and external, can assist energy development programmes.
• Community participation is very important for the success of the modern energy projects. Women play a central role in ensuring the maintenance of modern energy systems in rural communities. Mobilisation and organisation of local capital for energy projects are vital to their success.

Source(s):
‘Reaching the Millennium Development Goals and beyond: access to modern forms of energy as a prerequisite’ GNESD report: Denmark, 2007 (PDF) Full document.

id21 Research Highlight: 22 January 2008

Further Information:
Secretariat
Global Network on Energy for Sustainable Development
Risoe National Laboratory
Bldg. 142 Frederiksborgvej 399
P.O. Box 49
DK 4000, Roskilde
Denmark

Tel: +45 46775189
Fax: +45 46321999
Contact the contributor: sharif@risoe.dk; mette.annelie.rasmussen@risoe.dk

Global Network For Energy for Sustainable Development, Denmark

Other related links:
'Powering the MDGs: development targets unattainable without energy'

'Putting energy at the heart of poverty reduction'

'Can renewable energy help reduce poverty?'

'What energy systems are appropriate for poor villagers?'

'Poverty reduction through investment in transport and energy'