State of the Market Report for Healthcare Facility Electrification

The report identifies a significant global gap in healthcare electrification, with an estimated 1 billion people lacking reliable power at local facilities and a total investment need of USD 4.9 billion. While solar PV systems dominate current initiatives, the report argues for a shift from short-term procurement models (EPC) to long-term service-based models (ESCO) to ensure sustainable operation and maintenance (O&M). Key recommendations include developing country-specific taxonomies, enhancing inter-sectoral coordination between health and energy ministries, and leveraging climate finance and decentralized renewable energy certificates (D-RECs) to bridge the funding gap.

• Approximately 1 billion people worldwide have local healthcare facilities with unreliable power supplies. In Sub-Saharan Africa, 25,000 facilities lack electricity entirely, and 70,000 have unreliable supply, while 12% of facilities in South Asia lack any access.
• The total investment required to provide reliable power to health facilities in 63 low- and middle-income countries is estimated at USD 4.9 billion, with capital expenditure (capex) accounting for 84% of this total.
• The largest regional investment gaps are in Sub-Saharan Africa at USD 2.5 billion and South Asia at USD 2 billion.
• Healthcare electrification initiatives saw an average annual growth rate of 47% between 2018 and 2021, largely driven by the COVID-19 pandemic, though the number of initiatives declined by 20% in 2022.
• Stand-alone solar technology is the most prevalent solution, used in 82% of electrification initiatives on average.
• There is a significant shift toward larger systems for health centres; in 2023, 99% of electrified health centres received systems over 1 kilowatt (kW), compared to 97% receiving systems up to 250 watts (W) in 2018.
• The report advocates for a transition from Engineering, Procurement, and Construction (EPC) models, which often overlook long-term operation and maintenance (O&M), to Energy Service Company (ESCO) or service-based models.
• Climate finance, including decentralized renewable energy certificates (D-RECs), is identified as a promising but underutilized funding source that can help cover O&M costs, with D-RECs empirically covering about 15% of such costs.
• A critical challenge is the misconception among governments that solar power is free, which leads to a lack of dedicated budgets for O&M and component replacement, such as batteries.
• Geospatial technology and remote monitoring are becoming essential for data-driven decision-making, allowing for real-time tracking of system performance and the triggering of payments in results-based financing (RBF) schemes.
• The report recommends that every healthcare electrification programme begin with a detailed country roadmap to assess data, technical solutions, and financing mechanisms.
• There is a pressing need for enhanced coordination at the country level between health and energy ministries to avoid duplication and inefficiencies caused by sectoral silos.

APA

Sustainable Energy for All (2024). State of the Market Report for Healthcare Facility Electrification. https://www.seforall.org/system/files/2024-02/Report_SOTM_2024.pdf

Chicago

Sustainable Energy for All. State of the Market Report for Healthcare Facility Electrification. 2024. https://www.seforall.org/system/files/2024-02/Report_SOTM_2024.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=State of the Market Report for Healthcare Facility Electrification |date=February 2024 |url=https://www.seforall.org/system/files/2024-02/Report_SOTM_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforall2024state, author = {{Sustainable Energy for All}}, title = {{State of the Market Report for Healthcare Facility Electrification}}, institution = {Sustainable Energy for All}, year = {2024}, month = feb, url = {https://www.seforall.org/system/files/2024-02/Report_SOTM_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }