In 2022, the world faced an alarming setback in access to electricity, with an estimated 6 million additional people without power, according to data from the International Energy Agency (IEA). However, the latest data and analysis suggests we are on track to reverse this trend by 2023. The global number of people without access to electricity is predicted to decline to 745 million by the end of this year. In Sub-Saharan Africa, the situation is beginning to stabilize after three consecutive years of increases in the number of people without access. Meanwhile, Asia's developing economies are also advancing, albeit at a slower pace than before 2019.
A deeper analysis of the situation reveals that, although worrying, the 2022 setback could have been even worse. Some Asian and African governments have implemented measures to make electricity more affordable, strengthening efforts to connect households through conventional power grids and off-grid solutions. However, Africa has faced significant challenges due to rising debt at national power companies, which has restricted the resources available to expand access.
In 2022, many utility companies in Africa have shouldered the burden of keeping energy affordable, contributing to high levels of debt. This, along with supply chain disruptions, has affected the implementation of power grid expansion projects. As a result, the number of people on the continent gaining access to electricity through grids or mini-grids fell by as much as 50% last year. This regression was observed in almost 80% of Sub-Saharan African countries.
However, this decline was offset in part by growth in sales of solar home systems, which provide electricity to off-grid homes. Sales of these systems surpassed pre-pandemic levels last year, with strong growth in the West and East African regions. This contributed to the decline in the population without access to electricity in Nigeria during the crisis.
In developing Asia, climate challenges such as catastrophic flooding in Pakistan have impacted progress in 2022. However, long-standing electrification programs and the relatively resilient financial situation of energy companies in the region have helped mitigate the impact. Bangladesh has achieved near-universality in electricity access thanks to electrification efforts started more than two decades ago that included financial support for off-grid solar solutions and power grid expansion. Access to electricity also continued to improve in Cambodia and the Philippines during the energy crisis.
Despite these advances, it is important to highlight that the current rate of access to electricity still falls short of the goals established by the United Nations Sustainable Development Goal 7 (SDG7), which seeks to provide access to affordable, reliable and modern energy for all by 2030. To reach this goal, more than 120 million people need to gain access each year until 2030. By 2023, that number is expected to be less than 30 million.
To accelerate the progress needed, it is crucial that governments implement effective policies quickly, and the international community must work together to unlock funding for proven solutions. Ensuring that everyone has access to electricity is essential not only to improve people's quality of life, but also to drive global sustainable development.
