BAKU, Azerbaijan, June 13. The average annual investment required from 2020 to 2030 to reach full energy access in developing economies is USD 35 billion for electricity access and USD 6 billion (more than six times the 2020 level) for clean cooking access, Trend reports with reference to the International Energy Agency (IEA).
Reportedly, more than half of this investment takes place in Sub-Saharan Africa. Reaching these levels of investment for access would represent only 2 percent of total energy investment worldwide in 2019.
IEA notes that financial resources available for funding expansion and upgrades of electricity and clean cooking access have been inadequate to achieve full access.
“Between 2013 and 2019, an average of USD 12 billion a year was spent increasing electricity access in 20 countries representing 80 percent of the world’s population without access to electricity; in the same period, about USD 70 million was spent each year on clean cooking in the 20 countries with the largest number of people lacking access. International support through development aid and multilateral development banks will be essential to mobilizing these levels of investment and de-risking access and other energy investments in emerging market and developing economies.”
Under IRENA’s 1.5°C Scenario, annual investment in renewables, efficiency, related electricity infrastructure/ grids and flexibility measures, and hydrogen and biofuel supply amounts to just under USD 5 trillion a year through 2030 — more than a 60 percent over current plans and policies. In the power sector, increasing generation capacity would require accelerated investment of USD 1.7 trillion a year.