Insights for development interventions in the clean-energy sector

This policy brief by the Stockholm Environment Institute analyzes renewable-energy and clean-cooking interventions, primarily in sub-Saharan Africa, to identify drivers of success and barriers to socioeconomic development. It proposes a theory of change for energy interventions and provides five strategic recommendations for donors and development partners to improve the impact of clean-energy investments.

• Electricity generation has seen significant growth in utility-scale capacity in sub-Saharan Africa. Between 2013 and 2023, installed wind and solar photovoltaic capacity in the region (excluding South Africa) increased by a factor of 16, growing from approximately 200 MW in 2013 to 3,504 MW in 2023.
• Transmission and distribution networks are a major bottleneck for clean-energy expansion and overall system viability due to reliability issues and large energy losses from poor maintenance. The document suggests that externally financed transmission projects managed by independent operators could provide a solution for struggling utilities.
• On-grid electricity access has achieved high connection rates in some countries, such as 75% in Kenya and 85% in Ghana, but faces ongoing challenges including high connection costs, low consumption rates, and limited customer willingness to pay.
• Off-grid energy solutions are essential for remote communities, particularly in East African markets like Kenya and Uganda, but many businesses providing these services struggle with profitability because consumers at the base of the economic pyramid cannot afford regular payments over the long term.
• Clean-cooking interventions suffer from low adoption rates because designs often ignore user preferences and cooking habits, and there is a fundamental trade-off between stove efficiency and affordability.
• Policy reforms are critical for ensuring that energy investments achieve their intended benefits, but these interventions are often hindered by a focus on form over function and a lack of trust and local buy-in.
• While reliable energy is considered a necessary enabler for economic growth and human wellbeing, it is not a guarantee of development on its own. Macroeconomic evidence indicates that energy drives growth primarily by reducing costs associated with fossil-fuel back-up generation and minimizing outages.

APA

Duma, D., Bruder, M., & Hilgert, A. (2025). Insights for development interventions in the clean-energy sector. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2025/04/insights-for-development-interventions-in-the-clean-energy-sector-in-sub-saharan-africa.pdf

Chicago

Duma, Daniel, Maximilian Bruder, and Annika Hilgert. Insights for development interventions in the clean-energy sector. Stockholm Environment Institute, 2025. https://www.sei.org/wp-content/uploads/2025/04/insights-for-development-interventions-in-the-clean-energy-sector-in-sub-saharan-africa.pdf.

Wikipedia

{{cite report |last1=Duma |first1=Daniel |last2=Bruder |first2=Maximilian |last3=Hilgert |first3=Annika |title=Insights for development interventions in the clean-energy sector |publisher=Stockholm Environment Institute |date=April 2025 |url=https://www.sei.org/wp-content/uploads/2025/04/insights-for-development-interventions-in-the-clean-energy-sector-in-sub-saharan-africa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{duma2025insights, author = {Duma, Daniel and Bruder, Maximilian and Hilgert, Annika}, title = {{Insights for development interventions in the clean-energy sector}}, institution = {Stockholm Environment Institute}, year = {2025}, month = apr, url = {https://www.sei.org/wp-content/uploads/2025/04/insights-for-development-interventions-in-the-clean-energy-sector-in-sub-saharan-africa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }