10/08/2024 | Press release | Distributed by Public on 10/08/2024 13:46
Nairobi, 8 October 2024-Off-grid solar is the most cost-effective way to power 41% of people globally by 2030 who are still living without energy access. The sector already provided 55% of the new connections in sub-Saharan Africa between 2020 to 2022 - where over 80% of the unelectrified population lives.
The latest Off-Grid Solar Market Trends Report (MTR) 2024, published today by the World Bank's Energy Sector Management Assistance Program (ESMAP) and GOGLA, warns that a 6-fold increase over current investment levels - or $21 billion - is required to realize off-grid solar's potential to contribute to universal energy access, or this opportunity will be missed. Under the current trajectory, 660 million people are projected to still be without electricity by 2030.
"We must rewrite this story," remarked Qimiao Fan, the World Bank's Country Director for Kenya, Rwanda, Somalia and Uganda. "Providing access to affordable, clean electricity is critical for lifting people out of poverty on a livable planet, and we must be bold in our commitment to doing so. The World Bank Group has therefore partnered with the African Development Bank to connect 300 million people to electricity across Africa over the next 6 years, under the Mission 300 initiative. Off-grid solar will play a critical role in reaching households, as well as accelerating electricity access for businesses, schools, and health centers, unlocking development across sectors."
"With the Off-Grid Solar Market Trends Report, off-grid solar is again proven as the most effective route to reach almost 400 million unelectrified people, delivering life-changing energy solutions to power their homes, farms, businesses, and public services. The industry has shown tremendous resilience in challenging macroeconomic conditions. Companies, investors, governments, and development partners need to work together NOW to unlock the $21 billion needed to create a financially sustainable off-grid solar sector, that can scale, serve the hardest-to-reach and help achieve energy access and climate goals and ambitious initiatives like M300." said Sarah Malm, Executive Director at GOGLA.
Companies, investors, governments and development partners need to work together to ensure off-grid solar fulfills its potential, enabling the achievement of SDG 7, and having a transformative impact on households, businesses, farmers and social infrastructure.
The MTR was presented at the plenary session of the biennial Global Off-Grid Solar Forum and Expo in Nairobi to over 1500 attendees, including 100+ policymakers, 100+ investors and development actors, and hundreds of companies across the distributed renewables sector.
Read the full report.
GOGLA is the global association for the off-grid solar energy industry, representing over 200 members working to transform lives through clean, affordable, and high-quality solar products and services. More than 560 million climate-vulnerable people already benefit from off-grid solar to power their homes, farms, enterprises and public infrastructure. With the right support, our industry is poised to scale rapidly, aiming to improve the lives of 1 billion people by 2030. GOGLA drives this progress by serving as a central hub for the sector, offering vital market data, advocating for supportive policies and increased investment, and providing value-added services to our members.
ESMAP is a partnership between the World Bank andover 20 partners to help low- and middle-income countries reduce poverty and boost growth through sustainable energy solutions. ESMAP's analytical and advisory services are fully integrated within the World Bank's country financing and policy dialogue in the energy sector. Through the World Bank, ESMAP works to accelerate the energy transition required to achieveSustainable Development Goal 7 (SDG 7), which ensures access to affordable, reliable, sustainable, and modern energy for all. It helps shape WB strategies and programs to achieve the WB Climate Change Action Plan targets.