Region demonstrates strongest growth in Energy Transition Index scores, driven by enhancements in energy access and affordability
Photo for representation: iStock
Sub-Saharan Africa is grappling with significant equity challenges, demanding urgent improvements in energy access, affordability and a fair energy transition, according to a new World Economic Forum (WEF) report published June 19, 2024.
The 14th edition of the Forum’s report Fostering Effective Energy Transition 2024, created in partnership with Accenture, highlighted these issues. Despite the challenges, the region demonstrates the strongest growth in Energy Transition Index (ETI) scores, driven by enhancements in energy access and affordability.
ETI assesses 120 countries, evaluating their energy system performance based on equity, sustainability, security, and readiness of the enabling environment, including policies, regulatory framework, infrastructure, innovation, education, human capital and finance and investment. The assessment focuses on three key areas: Equity, security, and sustainability.
Energy equity involves various dimensions within and across nations and stakeholders. The lack of affordable access to modern forms of energy remains a critical concern, particularly in sub-Saharan Africa, where large segments of the population still lack electricity access. In this region alone, 600 million people, or roughly 53 per cent of the population, live without electricity. Hundreds of millions more have only limited or unreliable electricity.
However, the latest WEF report noted that sub-Saharan Africa has seen remarkable energy transition growth of 10 per cent over the past decade. Tanzania has emerged as a leader in the region, with a significant 37.7 per cent increase in electricity accessibility across both rural and urban areas from 2011 to 2020. Ethiopia launched its National Electrification Programme in 2017, aiming for universal energy access by 2025, with a specific goal of providing off-grid power solutions to 35 per cent of its population. Zimbabwe has experienced a rise in renewable energy generation, primarily through hydropower, leading to improved energy access and substantial job growth in the clean energy sector. Despite progress in improving energy and carbon intensity, South Africa’s energy sector still has considerable room for improvement.
Out of 120 countries, 107 have shown progress over the past decade, with 30 countries seeing their scores increase by more than 10 per cent. Although ETI scores reached their highest in 2024, transition momentum has slowed over the last three years. The concept of transition momentum highlights countries that are rapidly transitioning and those that face risks. Sub-Saharan Africa leads with the highest positive momentum, driven mainly by advancements in energy security and regulations. The region has diversified its imports and significantly improved grid reliability.
However, there is still substantial room for improvement, especially in equity and finance, to expand access to electricity and clean cooking. Decentralised renewable energy solutions, such as mini grids, can help eradicate energy poverty in Sub-Saharan Africa by increasing energy access and establishing an electricity market. These solutions can also improve supply reliability and reduce local pollution from diesel use.
“This year’s ETI delivers a clear message: urgent action is needed. Global decision-makers must make bold moves to regain momentum in the transition towards an equitable, secure, and sustainable energy future. This is critical for people, entire economies, and the fight against climate change,” said Espen Mehlum, Head of Energy Transition Intelligence and Regional Acceleration, World Economic Forum.
ETI 2024 Scores: Europe continues to lead the ETI rankings, with the top 10 list for 2024 fully composed of countries from that region. Sweden (1) and Denmark (2) top the rankings, having both placed in the top three countries each year for the past decade. They are followed by Finland (3), Switzerland (4), and France (5). These countries benefit from high political commitment, strong investments in research and development, expanded clean energy adoption – accelerated by the regional geopolitical situation, energy-efficiency policies, and carbon pricing.
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