ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2019

Finance for energy access in 20 high-impact countries remains significantly below the levels required to achieve Sustainable Development Goal 7 by 2030. While electricity finance reached a peak of USD 36 billion in 2017, only one-third benefited residential users. Clean cooking finance saw a dramatic 73% drop in 2017 compared to the 2015-16 average. The report highlights a critical under-investment in Sub-Saharan Africa and a reliance on large-scale grid projects over decentralized solutions. It also examines the specific barriers faced by women and displaced persons and explores innovative financing mechanisms like Result Based Financing and securitization to bridge the investment gap.

• Total finance for electricity in the 20 high-impact countries (HICs) reached a record USD 36 billion in 2017, but only USD 12.6 billion of this is estimated to have provided residential access.
• Finance for residential clean cooking experienced a severe decline, dropping to USD 32 million in 2017, which is a 73% decrease from the 2015-16 annual average of USD 117 million.
• International public finance for electricity increased to USD 19.4 billion in 2017, largely due to export credit agencies and multilateral DFIs, while bilateral aid from developed countries like Japan and the US fell sharply from USD 4.1 billion in 2015-16 to USD 2.3 billion in 2017.
• Grid-connected renewable energy plants received 61% of all tracked electricity finance in 2017 (USD 22.1 billion), with solar PV attracting over USD 9.8 billion, primarily driven by investments in India.
• Investment in off-grid solutions and mini-grids remains very low, representing only 1.2% of total electricity finance at USD 430 million in 2017, with Kenya, Tanzania, and Uganda accounting for 56% of this total.
• Sub-Saharan African countries are severely under-invested; in 2017, ten of the 13 analyzed countries received less than USD 300 million for electrification, and four saw an absolute decline in investments.
• In Nigeria, the clean cooking market is hindered by a lack of regulation for LPG cylinder recirculation and safety, and the imposition of VAT on domestic LPG makes it less affordable than imported LPG, which is VAT exempt.
• Nepal's clean cooking efforts have historically focused on improved mud and metallic stoves and biogas digesters, but the 2015 earthquake disrupted public investment flows.
• Women face significant financial barriers to energy access, including a 20% lower likelihood of borrowing from formal financial institutions and higher interest rates for female entrepreneurs.
• Displaced persons are highly dependent on biomass; approximately 90% of individuals in refugee camps have no energy access (Tier 0), and fuel collection is a major driver of gender-based violence.
• Innovative financing mechanisms such as Result Based Financing (RBF), pay-per-service models, and securitization are being used to unlock private capital, though they need to be scaled.

APA

Sustainable Energy for All (2019). ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2019. https://www.seforall.org/system/files/2019-11/EF-2019-UL-SEforALL-w.pdf

Chicago

Sustainable Energy for All. ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2019. 2019. https://www.seforall.org/system/files/2019-11/EF-2019-UL-SEforALL-w.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2019 |date=2019 |url=https://www.seforall.org/system/files/2019-11/EF-2019-UL-SEforALL-w.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforall2019energizing, author = {{Sustainable Energy for All}}, title = {{ENERGIZING FINANCE: UNDERSTANDING THE LANDSCAPE 2019}}, institution = {Sustainable Energy for All}, year = {2019}, url = {https://www.seforall.org/system/files/2019-11/EF-2019-UL-SEforALL-w.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }