Developing Countries’ Energy Needs Still High Amid $24.6bn Funding Increase—World Bank

The World Bank has noted that though international public financial flows supporting clean energy in developing countries increased slightly to US$ 24.6 billion; and improvements in global energy efficiency continued to reach 3.76 megajoules per US dollar, this remains an insufficient pace to meet Sustainable Development Goal (SDG) 7 targets.

The Banks latest edition of Tracking SDG 7: The Energy Progress Report, featuring of new 2023 and 2024 data, shows while most regions are nearing universal access, progress in Sub-Saharan Africa has slowed significantly, and the pace of electrification must triple to achieve universal access by 2030. 

Despite these challenges, the report highlights encouraging progress in several areas of sustainable energy. 

Renewable energy continued its strong expansion, accounting for over 30 per cent of global electricity consumption; while renewable energy-generating capacity reached a global record of 544 watts (enough to power a refrigerator) per person. 

It noted that at a time when energy security and affordability have risen to the top of the development agenda, 655 million people globally still lack access to electricity, and two billion use polluting fuels and technologies for cooking putting their health and well-being at risk. Sub-Saharan Africa bears a disproportionate share of these gaps, with over 560 million living without electricity and 970 million lacking access to clean cooking.  

However, the report warns that without urgent and scaled-up action, the world will fall short of achieving SDG 7 to ensure universal access to affordable, reliable, sustainable, and modern energy by 2030. Moreover, while the current global energy crisis is still unfolding, its impact on energy markets and the broader economy are expected to be significant. 

In this context, accelerating domestic renewable energy deployment is increasingly seen as essential both for strengthening energy security and affordability as well as advancing long-term climate and development objectives. 

Distributed renewable energy solutions, including off-grid solar and mini-grids, are a cost-effective solution for electricity access, already serving hundreds of millions of people. Electric cooking, bioethanol and biogas are also gaining traction as scalable renewable energy cooking solutions, helping to further diversify clean cooking pathways.

Affordability remains a major obstacle to expanding electricity access. Even where infrastructure is available, many households cannot afford connection fees, wiring costs or basic energy services. 

As countries work to reach the remaining unelectrified population, target subsidies, innovative financing mechanisms and least cost electrification solutions will be essential to ensure that no one is left behind.

Financing constraints are hampering progress, with levels either insufficient to meet the SDG 7 goals or declining altogether in the poorest countries. International financial flows in support of clean energy to the least developed countries declined significantly, registering $3.7 billion in 2024, an 11 per cent decrease from 2023.  

Stronger political leadership, improved cross-sector coordination, and a strategic focus on the countries and communities most at risk of being left behind remain cross-cutting priorities in the lead up to 2030. Clear policy signals and sustained implementation are fundamental to diversifying the national energy mix, increasing renewable energy, reducing dependence on fossil fuel imports and bolstering macroeconomic resilience against global supply chain disruptions.