Archive for category: Electricity and Power

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How South Africa’s Energy System Limited Progress

South Africa’s EnergySouth Africa has long grappled with energy challenges rooted in its Apartheid-Era policies. The electricity grid was historically designed to serve a small, privileged minority, leaving vast portions of the population without access to reliable power. This outdated infrastructure failed to meet the demands of a growing population after apartheid ended, leading to frequent blackouts and widespread dissatisfaction. These challenges underscore the need to shift toward clean energy in South Africa.

In 2011, the government launched the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) in response to the energy crisis. This initiative aimed to bring private investors into the renewable energy sector and address systemic inequalities by improving access to affordable electricity. Over the years, the program has made significant strides, reshaping South Africa’s energy landscape.

REIPPPP: A Game-Changer for Clean Energy

The REIPPPP is often lauded as a transformative project that promotes economic growth and sustainable development. By encouraging private companies, known as Independent Power Producers (IPPs), to invest in clean energy in South Africa, the program has delivered tangible results. It has added more than 6,000 megawatts (MW) of electricity to the national grid through wind, solar, and hydro projects

A key feature of REIPPPP is its focus on socio-economic benefits. Participating companies have to allocate a percentage of their revenue to local community development. Since its development, the program has provided 55,000 job years for South African citizens and could create even more, helping reduce poverty and improve living conditions for underserved communities.

Affordable Clean Energy

In rural areas, REIPPP projects have provided reliable and sustainable electricity. The Touwsrivier Concentrated Solar Plant in the Western Cape has significantly contributed to rural electrification by installing a 44 kW solar Photovoltaic (PV) system.

Additionally, the CPV1 solar power project, in partnership with local authorities, has expanded its impact by installing solar PV systems at schools. These systems have drastically reduced electricity costs, saving R5,000 (300$) per month per school. The savings were redirected toward purchasing educational resources, thereby improving the quality of education in underserved areas.

Increased Investment in the Country

The REIPPPP has attracted around R193 billion (US$16 billion) in investments, driving nearly 6 GW of renewable energy procurement since 2011. Notably, around R135.6 billion of the total investment stems from international financiers, with 25.8% contributed by foreign sources, according to the International Trade Administration (IDA). The United States remains the largest source of foreign direct investment (FDI) in South Africa’s renewable energy sector, with several U.S. companies actively participating in tenders issued by the South African Department of Energy.

Beyond providing affordable and clean electricity, the program has allocated R19.1 billion to socio-economic development initiatives, benefiting local communities and creating employment opportunities, Blue Horizon reports. This alignment between private and public sectors highlights the potential of partnerships to drive sustainable development.

By bridging gaps in energy access and fostering economic investment, the REIPPPP continues to serve as a global model for renewable energy initiatives.

The Role of Eskom in the Energy Transition

While REIPPPP has made considerable progress, its success is closely tied to Eskom, South Africa’s primary electricity supplier. Eskom generates approximately 95% of the country’s electricity, largely from coal, which poses environmental and operational challenges, according to IDA. The utility’s aging infrastructure and financial woes have prompted the government to explore partnerships with IPPs to diversify energy sources. However, through REIPPPP, Eskom has incorporated clean energy into South Africa’s national grid, providing cleaner and more reliable power, IDA reports.

This collaboration highlights the importance of combining public and private efforts to overcome energy challenges in South Africa.

Challenges and Future Outlook

Despite its successes, the shift to clean energy in South Africa is not without challenges. The current grid infrastructure is insufficient to support the increased demand for clean energy in South Africa. Minister Kgosientsho Ramokgopa emphasized that while there is significant interest from the private sector to engage in the REIPPPP, the lack of grid capacity hinders progress in deploying new projects.

The slow and complex licensing process for IPPs has been a significant barrier to the progress of renewable energy projects. These delays have deterred investment and slowed the deployment of energy solutions. Minister Ramokgopa acknowledged this issue and outlined plans to simplify and potentially eliminate licensing requirements to facilitate faster integration of renewable energy into the grid and support the country’s decarbonization efforts.

South Africa’s workforce is primarily skilled in coal and nuclear energy. As the country transitions to renewable energy, there is a risk of job losses unless the workforce is up-skilled. The lack of proper training and capacity-building programs could lead to unemployment among coal workers and a shortage of skilled professionals in the clean energy sector. It is essential to prioritize training and skills transfer to ensure a smooth transition.

Solutions for a Sustainable Future

South Africa faces significant hurdles in its transition to clean energy, but there are viable solutions. Indeed, by modernizing the grid infrastructure, simplifying regulatory processes and providing reskilling programs for coal workers, the country can accelerate its energy shift. Strengthening public-private partnerships will also attract vital investment and foster socio-economic development. These steps could ensure a just transition to a cleaner, more reliable energy future.

The REIPPPP offers a clear path forward for South Africa, demonstrating how renewable energy can foster economic growth, create jobs and tackle inequality. Furthermore, if fully embraced, South Africa has the potential to lead the global transition toward clean energy, setting a powerful example for other nations to follow.

– Mmanoko Faith Molobetsi

Mmanoko is based in Pretoria, South Africa and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Exploring the Economic Impact of Renewable Energy in Mali

Renewable Energy in Mali
Many citizens in Mali, a Sub-Saharan desert country in Africa with a population of almost 24.5 million, struggle to afford energy, and simmer in poverty. In 2022, poverty rates hit 19.1%, meaning almost 20% of their population makes less than $2.15 a day. With their growing impoverishment, their government has decided to take initiative and implement renewable energy in Mali. Not only does renewable energy create a cheaper alternative for those who cannot otherwise afford it, but it also creates jobs for those who need them. A staggering 52% of the population has access to electricity, less than 5%  have access to clean cooking, and as of 2023, the unemployment rate sits at 3.01%.

What is Renewable Energy?

In general terms, renewable energy is harnessed power that is derived from a continuously and naturally replenishable source, and is often a carbon-free source. Renewable energy sources include: 

  • Hydropower
  • Wind Power
  • Biomass
  • Solar Energy

All of these create a form of electricity.

Today, electricity greatly enhances people’s lives, which they use for everything from evening illumination to laundry, food preparation, factory operation and even things like international communication. It is essential for raising living standards, promoting economic growth and reducing poverty.

How Does Renewable Energy Affect Mali?

Currently in Mali, the average lifespan is only 59 years. On average, 97 newborns out of 1,000 pass away before they turn five. About 80% of Malians lack proper sanitation, and many do not have access to safe drinking water. The population is growing at a pace of 3.2% each year, and 47% of Malians are under the age of 15.

In 2006, Mali’s government implemented the National Energy Policy, which is supported by its five main objectives:

  • Improving access to energy
  • The rational use of existing energy sources
  • The efficient use of existing natural resources to produce energy
  • Sustainable use of biomass resources through the conservation and protection of forests
  • Strengthening government capacity and streamlining administrative procedures within the energy sector

These objectives aid in getting more electricity access across the continent, and also has the potential to create employment opportunities across the globe. According to the International Renewable Energy Agency (IRENA), transitioning to renewable energy in Mali is expected to “create 40 million additional jobs in the energy sector by 2050, with 18 million more jobs globally in renewables alone.”

Actions That Mali is Taking

Mali already has many jobs created for its citizens from these renewable energy projects. For example, in 2019, “ECREEE supported the Government of Mali in 2015 to develop a BOOT model tender for the development of grid-connected renewable energy projects.” From this BOOT (Build, Own, Operate, Transfer) model, a whopping 450 jobs emerged in Mali across the duration of the project.

The imminent arrival of these jobs can provide skills to allow workers to obtain future employment once it becomes available. However, in order for this initiative to work, there are several things being prioritized starting at early ages. With aid and funding from the U.S. Agency for International Development (USAID), the Education Development Center (EDC) has been able to provide a lot of help to the youthful Malians through the PAJE-Nièta— the Mali Out-of-School Youth project. These are the main pursuits of the project:

  • Give young people access to basic education, training in entrepreneurship and technical instruction in the service and agro-pastoral sectors
  • Teach volunteers to conduct business and basic education classes and to support program participants as they pursue entrepreneurship
  • Teach young people how to use Stepping Stone, an app that the EDC created, to access basic education lessons on mobile devices
  • Teach young people to start internal lending and savings organizations to support social and corporate loans
  • Boost the current youth associations’ organizational capabilities to oversee and carry out project operations

Looking Ahead

In order to produce employees for future jobs, once renewable energy projects reach completion, creating skilled workers from the inexperienced youth is key to furthering the continent’s progression. Renewable projects in Mali will likely develop the country’s economy, improving the conditions its citizens live in.

– Taylor Naquin

Taylor is based in Gilbert, AZ , USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Mission 300: Push for Clean Energy Access in Africa

Clean energy access in africaIn terms of factors worsening global poverty, energy distribution and access to electricity both play a pivotal role in alleviating poverty worldwide. Many places struggle with energy distribution and access. However, in parts of Africa, particularly sub-Saharan Africa, this problem remains severe. According to the World Bank Group, 600 million people in sub-Saharan Africa lack access to electricity. This number represents nearly 83% of the world’s unelectrified population. To combat this issue, the World Bank Group has partnered with the African Development Bank and other collaborators on Mission 300, a project that aims to provide clean energy access in Africa by 2030.

Ambitious Project

Mission 300 aims to deliver clean and affordable energy to nearly 300 million people. To achieve this goal, the World Bank and the African Development Bank will collaborate with governments, philanthropies, the private sector and multilateral. The success of this initiative depends on working with different governments and addressing the unique energy needs of each country, guided by local leaders. Negotiations with the private sector will also play a crucial role in managing transmission and distribution networks. Additionally, donors, philanthropists and other partners will contribute vital investments to ensure the project’s financial success and help attract public funding.

Different from Past Efforts

Previous efforts have tried to address the electricity crisis, but Mission 300 offers a new approach. First, it is African-led, allowing leaders to implement country-specific reforms tailored to their populations. Moreover, the initiative has already made progress by helping 12 million Africans gain access to electricity. Significant financial backing supports this effort, with $20 billion in funding from the International Development Association and additional support from donors and partners like the Rockefeller Foundation.

New contributors continue to join the project. Agencies from the United States (U.S.), the United Kingdom (U.K.) and Germany have expressed interest in assisting. In comparison to earlier initiatives such as the World Bank’s 2007 Lighting Africa project, which struggled to reach its goals or the African Development Bank’s 2016 ‘New Deal on Energy for Africa,’ which experienced delays due to funding gaps and logistical hurdles, Mission 300 builds on lessons from those experiences. By integrating new resources and innovative methods, this initiative aims to succeed where previous efforts fell short.

Finding Clean Energy Solutions

Mission 300 prioritizes green energy solutions like solar, wind and hydropower to limit the environmental impact of increased energy access. Mini-grids and off-grid systems will bring electricity to rural areas without relying on carbon-emitting infrastructure. Additionally, the project promotes energy efficiency measures that reduce environmental harm while eliminating reliance on kerosene and diesel fuels.

Looking to the Future

Mission 300 continues to expand, with 12 million people already connected and 90 million ongoing projects in progress. This initiative offers unprecedented clean energy access in Africa. Staying informed about Mission 300 is crucial, as the project continues its efforts to provide sustainable energy solutions for millions across sub-Saharan Africa.

– Michael Messina

Michael is based in Newburyport, MA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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5 Things to Know about Renewable Energy in Brazil

Renewable Energy in BrazilBrazil is one of the largest energy markets in the world, and the largest energy market in Latin America. There are over 88 million consumers of electricity in Brazil, including residential, commercial and industrial consumers. With Brazil producing and consuming that much energy, renewable energy sources such as hydroelectric, solar, and wind power are incredibly popular throughout the country.

Renewable Energy Efforts

  1. Brazil is a world leader in renewable energy. The global average for renewable energy sectors is 25%, whereas renewable energy accounts for more than 80% of Brazil’s energy network, according to the International Trade Administration (IDA). Brazil also has one of the cleanest energy matrices in the world, with the vast majority of its energy production being renewable. For the most part, Brazil also focuses on domestic energy production, instead of outsourcing or importing their energy.
  2. The most popular form of renewable energy in Brazil is hydropower. In 2020, hydroelectric power produced 66% of all electricity generated in Brazil, which is five times more than the amount of electricity that fossil fuels produced. Most hydroelectric power plants operate in the Amazon River Basin, which is in northern Brazil. Brazil has more than 150 active hydropower plants.
  3. Plastic water bottles are providing energy. Several areas in Brazil still do not have reliable access to electricity. Some organizations, like Litro de Luz, are working to provide access to electricity through the use of recyclable materials. The organization uses these materials, including plastic bottles and PVC pipes, to create solar panels that function as lanterns or lamp posts. Litro de Luz focuses on low-income families in impoverished regions. Their inventive solar energy methods have provided reliable renewable electricity to more than 20,000 people.
  4. While solar energy only accounted for less than 10% of energy produced in Brazil in 2020, it is rapidly becoming more popular as a renewable energy source, according to the U.S. Energy Information Administration (EIA). There has been a focus on providing solar energy in low-income areas due to the low cost of installation and upkeep. Organizations like ABSOLAR work with Brazilian solar companies and energy companies to promote the increased use of solar energy throughout the country. By 2030, Brazil hopes to have solar energy account for the majority of its power expansion.
  5. Wind turbines are another form of renewable energy in Brazil. The first wind turbine in Brazil began operations in 1992, and Brazilians have steadily increased the use of turbines since. The Brazilian Wind Power Association estimates that 16% of renewable energy in the country comes from wind power. There are also more than 1,100 wind farms in Brazil, both onshore and offshore. In addition to providing clean energy, wind power is also helping to provide jobs in Brazil. Each wind turbine installed creates roughly 11 jobs.

A Booming Industry

Renewable energy in Brazil is a booming industry. It provides thousands of jobs and access to clean, reliable energy to those in need. Brazil utilizes several renewable energy sources, including hydroelectric, solar and wind power. There are also many organizations working to make renewable energy available to everyone, such as ABSOLAR, Litro de Luz, and the Brazilian Wind Power Association. Renewable energy is helping to make electricity access affordable, reliable, and clean around the world. Brazil is steadily growing as a leader in this mission.

– Lizzie Mazzola

Lizzie is based in Raleigh, NC, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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Renewable Energy in Latvia

Renewable Energy in Latvia Latvia, a small Northern European country with a population of about 2 million, is leveraging its natural resources to reduce reliance on fossil fuels and meet the European Union’s (EU) ambitious green energy goals. With abundant forests, access to the Baltic Sea and significant hydropower potential, Latvia has positioned itself as a regional leader in renewable energy innovation.

Current Renewable Energy Landscape

Latvia’s renewable energy sector ranks among the most developed in Europe, with hydropower accounting for more than 50% of its electricity production. This dominance stems from the country’s extensive network of rivers and dams, which play a crucial role in powering the national energy grid. Biomass energy is another critical component of Latvia’s renewable strategy, supported by its vast forest resources covering more than 42% of the country. Investments in biomass energy have significantly improved efficiency and environmental preservation. Over the past five years, electricity generated in biomass cogeneration plants and power stations has surged by 144.2%, highlighting the sector’s rapid growth.

Future Potential in Renewables

Latvia’s renewable energy ambitions align closely with the EU Green Deal, which seeks carbon neutrality by 2050. Through its National Energy and Climate Plan (NECP), Latvia aims to increase the share of renewable energy to 50% by 2030. This plan prioritizes modernizing the national grid, enhancing energy storage and scaling up wind and solar energy capacity. Offshore wind energy holds immense potential for Latvia, due to favorable wind conditions in the Baltic Sea. Collaborative efforts with Estonia and Lithuania are exploring large-scale offshore wind farm projects to address regional energy needs and reduce dependency on traditional energy sources. Solar energy, while still underutilized, is gaining momentum as small-scale projects emerge nationwide.

Challenges in Renewable Energy Development

Despite Latvia’s progress, challenges remain. Heavy reliance on hydropower makes the energy system vulnerable to fluctuations in river flow, which are increasingly influenced by climate change. While high water flows in 2023 enabled hydropower plants to produce their second-largest electricity output in 25 years, periods of drought or low water flow could significantly disrupt energy generation. Financial constraints also pose a barrier to expanding renewable energy infrastructure. High project costs necessitate greater foreign investment and partnerships.

Empowering Communities Through Renewables

In 2020, the Mārupe Municipality launched Latvia’s first community energy project under the ShareRES initiative. This small-scale renewable energy solution empowers residents to generate and manage their electricity through solar panel installations. Residents have reported lower energy costs and reinvested these savings into other community initiatives. The success of this project highlights the potential of grassroots renewable energy solutions and serves as a blueprint for similar initiatives nationwide.

A Vision for the Future

Latvia’s renewable energy journey reflects a blend of ambition, innovation and community-driven initiatives. By embracing wind, solar and other clean energy sources, Latvia aims to complement its existing hydropower and biomass strengths while mitigating risks tied to climate change. Furthermore, grassroots projects, like the Mārupe Municipality initiative, underscore the importance of local engagement in achieving national and EU energy goals. Through strategic investments, international collaboration and a focus on sustainable development, Latvia can potentially become a model for renewable energy in Northern Europe. Its commitment to a greener future not only benefits its citizens but also contributes to the broader fight against climate change.

– Avery Hazard

Avery is based in Segovia, Spain and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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Renewable Energy in Bahrain

renewable energy in bahrainBahrain, a small island nation in the Arabian Gulf, with a population of 1.5 million, has historically depended on oil and natural gas to meet its energy and economic needs. The nation has limited land area and high per capita energy consumption. Bahrain now faces a challenge in transitioning from fossil fuels to sustainable energy sources. To address this, Bahrain’s government is prioritizing the diversification of its energy mix to have renewable energy play a central role in its development strategy. Bahrain aims to establish itself as a regional leader in the sustainable energy shift by investing in renewable technologies.

Current Renewable Energy Landscape

Renewable energy in Bahrain is still very limited as progress is in development. A prominent project is a collaboration between Bahrain Petroleum Company (Bapco) and Abu Dhabi Future Energy Company PJSC– Masdar, which has shown potential for wind energy that can help meet both industrial and domestic demands in the country. The agreement between the two energy companies could help improve the development and investment in Bahrain’s wind projects. Previously, Masdar has helped build and invest in the Dumat Al Jandal wind farm in Saudi Arabia, the largest wind project farm in the Middle East. In addition, Bahrain is also planning a heat waste recovery pilot program, which gathers excess heat to be captured and converted to electricity.

Future Potential

Bahrain’s renewable energy targets align with the nation’s Vision 2030, including the goal to generate  5% of its energy from renewable sources by 2025 and 10% by 2035, according to the UNDP report. This includes starting more renewable technologies to diversifying to the mix of solar, wind, and waste-to-energy technologies.

Bahrain, due to its geopolitical position, should focus on expanding its solar capabilities. Solar energy is the most viable option due to the nation’s abundant sunshine, which averages more than 3,000 hours of sunlight annually and can be the most advantageous.

The country’s strategic location and expertise in financial services position it to attract foreign investment in renewables. Public-private partnerships and international collaboration, particularly with organizations like the International Renewable Energy Agency (IRENA), are being leveraged to fund and implement large-scale projects.

The installation of solar panels in Bahraini households under the Sustainable Energy Authority (SEA) initiative is providing a reliable and sustainable source of electricity for rural and urban households alike. Businesses are also adopting rooftop solar solutions to reduce energy costs and minimize their carbon footprint.

Challenges and Opportunities

Despite Bahrain’s progress, challenges remain as the nation faces limited land availability, high initial costs, and the need for skilled labor and technical expertise. The country’s reliance on natural gas for power generation shows the need for gradual transition strategies that balance economic and environmental priorities. Opportunities from solar energy development to waste-to-energy efforts can increase Bahrain’s renewable development and help address the country’s energy challenges.

– Avery Hazard

Avery is based in Segovia, Spain and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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Renewable Energy in Bulgaria

Renewable Energy in Bulgaria
Bulgaria stands at a pivotal moment in its energy transition, with renewable energy playing an increasingly vital role alongside its traditional reliance on nuclear power and coal. Solar generation represents a key driver in the country’s pursuit of the EU renewable energy target of 27% by 2030 and net zero emissions by 2050. Backed by international investments and streamlined energy legislation, Bulgaria is accelerating the development of renewable infrastructure while modernizing its power grid. The country is positioning itself as a regional leader in sustainable energy production with a decentralized energy system set to help reduce energy poverty in the country.

The Current Energy Landscape of Bulgaria 

The two major energy sources for Bulgaria’s domestic energy consumption are nuclear power and coal. Nuclear power accounts for around 40% of energy supply and has been a major energy source for Bulgaria since the 1950s. Additionally, in 2023/24, there was a steadily growing use of solar generation contributing almost 13% of total electricity generation.

Renewable Energy Investments 

Renewable energy in Bulgaria aims to account for 27% of domestic production by 2030, contributing to the EU renewable energy target for 2030. The country is also aiming at a net zero emissions target for 2050. A large portion of this is currently being exploited via solar generation.

The European Bank for Reconstruction and Development (EBRD) is a major leader in climate finance and one of the primary investors in renewable energy in Bulgaria. In late-2024, the EBRD announced that it would lend €50 million to Bulgaria to build a 237 MW solar plant, a huge step for its renewable energy agenda. The investment is part of a wider pledge to further UN Women’s Empowerment Principles in the Bulgarian energy sector. The shift away from fossil fuel use is beneficial in the Bulgaria’s plans to reduce energy poverty. This topic has been high on the country’s agenda since 2022 when the war in Ukraine increased import prices of Russian natural gas and coal. More than a quarter of Bulgarians in 2022 were unable to adequately heat their homes due to energy poverty.

Simplification of Administrative Frameworks 

The past year has hailed a stream of new investment in renewable energy in Bulgaria – not just because of a push for EU climate goals. The country simplified the administrative frameworks required for renewable energy infrastructure in 2023, making projects easier to plan and implement. Other changes to the country’s energy legislation enabled clarity on investing in renewable energy plants with batteries for energy storage during off-peak production periods.

Bulgaria also clarified steps to establish a more interconnected power grid which should decentralize energy and reduce the country’s state of energy poverty.  This would be enabled through the empowerment of households and democratizing of the energy system coming as a result of more energy suppliers and better energy infrastructure. A more robust domestic energy supply divested away from fossil fuels would help shield the Bulgarian energy sector from fossil fuel import fluctuations and over-reliance on Russian imports of coal and natural gas. This shift to renewable energy infrastructure in turn aids households through the stabilization and lowering prices of energy.

Following the 2023 changes, 2024 saw €65 million investment from the EU Modernization Fund in Bulgaria’s GREENABLER project to modernize the country’s power grid for the integration of renewable energy. Further, calls by the Bulgarian Ministry for Energy for renewable energy plants with energy storage (crucial to divest reliance away from fossil fuels) have stipulated project deadlines for March 2026. This push in funding programs has allowed for the development of 249 renewable energy projects in Bulgaria. Such short project deadlines and investment flows are positive news for massively accelerating renewable energy infrastructure in the country to meet 2030 energy targets. 

The Future of Nuclear Supply

Bulgaria does seem to be expanding outside renewables into nuclear energy – a low carbon energy solution. Though not renewable, nuclear power production in Bulgaria has merits over traditional fossil fuels, such as curbing reliance on countries such as Russia for fossil fuel imports. Contracts have been entered between Hyundai Engineering (South Korea) and Westinghouse (U.S.) to develop additional capacity and replace the aging reactor units at the Kozloduy nuclear power plant in Bulgaria. As domestic demand for energy has remained stable over the decades, it is likely an expansion of energy production would be a bid to increase energy exports to neighboring countries. Alongside a growing industry of renewable energy in Bulgaria, nuclear investment could boost Bulgaria’s economy as well as create new jobs and opportunities for its population.

– Autumn Joseph

Autumn is based in London, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Substantial Investment in China’s Renewable Energy

Investment in Renewable EnergyChina’s substantial investment in renewable energy, especially in wind and solar, is transforming its energy landscape and could aid in poverty reduction. With nearly two-thirds of major global renewable energy projects under construction in China, the shift away from coal would align with global green energy goals by 2030. It also promises economic benefits such as job creation and lower energy costs.

This transition may improve living conditions for low-income communities by reducing pollution and fostering a healthier environment. This highlights the interconnectedness of sustainability and poverty alleviation.

Energy Poverty as a Pressing Issue

Energy poverty continues to be a pressing issue, with more than one billion people unable to use electricity. However, China’s 2013 “Belt and Road Initiative” has facilitated deep-level energy cooperation with 151 countries along this expansive route. This spins regions such as Eastern Europe, Africa and Latin America through outward foreign direct investment (OFDI). Among these regions, nearly 600 million people lack electricity access and the electrification rate in the lowest 20% of countries by per capita gross domestic product (GDP) stands at a mere 56.7 %.

China’s investment in renewable energy shows a promising solution for energy poverty as currently, addressing the issue of energy poverty presents a huge barrier to the achievement of United Nations Sustainable Development Goal 7. This is the goal that seeks to ensure universal access to affordable, reliable, sustainable and modern energy by 2030.

China’s Substantial Investment in Renewable Energy

China is fast becoming a green energy superpower, serving as the leader in investment and installation of low-carbon technology. The nation is motivated by the desire to cut greenhouse gas emissions, boost energy security and catch up with or even overtake industrialized countries in technological innovation. China’s substantial investment in renewables has proven itself extremely successful so far. For example, in 2023, clean energy contributed a record 11.4 trillion yuan ($1.6 trillion) to China’s economy, accounting for all of the growth in investment as well as a larger share of economic growth than any other sector.

In addition, clean-energy sectors were the largest driver of China’s economic growth overall, accounting for 40% of the expansion of GDP in 2023. Moreover, China’s production of electric vehicles grew 36% year-on-year in 2023 to reach 9.6 million units, a notable 32% of all cars produced in the country.

Solar Power

Solar was the largest contributor to China’s economic growth in 2023. It recorded growth worth a combined $140 billion of new investment, goods and services, as its value grew from $210 billion in 2022 to $350 billion in 2023, an increase of 63% year-on-year. Data shows that local government investment in facilities and infrastructure, as well as direct subsidies, added 30% to the reported private investment.

Effects on Energy Poverty

China has made significant progress in addressing energy poverty in the past few decades. This accomplishment has been crucial in replacing the reliance on traditional biomass fuels like wood and dung, which emit harmful greenhouse gases when burned. Despite advancements in electricity access and renewable energy supply, some remote and impoverished areas in China still face challenges related to the quality and reliability of the electricity supply.

Additionally, access to other modern energy sources like clean cooking fuels remains limited in certain regions. With continued efforts, there is hope that these challenges can be overcome.

Conclusion

China’s significant investments in renewable energy are not only reshaping its energy landscape but also have the potential to alleviate poverty. By transitioning from coal to clean energy sources like wind and solar, China aligns with global sustainability goals while enhancing economic growth through job creation and reduced energy costs. This highlights the link between sustainable energy practices and poverty reduction, paving the way for a fairer future.

– Amani Almasri

Amani is based in Durham, UK and focuses on Good News for The Borgen Project.

Photo: PickPik

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Energy Crisis in the Andes

Energy Crisis in the Andes The Andes, a breathtaking mountain range spanning the western coast of South America, is the longest in the world. Stretching more than 4,000 kilometers from Colombia to Chile, the region holds immense historical significance as the homeland of the ancient Inca civilization. Despite their beauty and rich history, the Andes are home to many rural communities struggling to adapt to modern times, particularly in accessing electricity and reliable energy. In high Andean rural regions in Peru, more than 30% of households lack access to electricity, highlighting the disparity between urban and rural energy access. Some of these communities have fought for access to electricity for more than a decade without success, highlighting a growing energy crisis in the Andes.

Challenges in Kewinal, Bolivia

Kewinal, Bolivia, is home to the Ragaypampa, an indigenous ethnic group, this remote community has petitioned for electricity for 15 years. Despite these ongoing efforts, Kewinal’s geographic isolation poses significant challenges. Electricity could drastically improve life in Kewinal. Without it, households rely on candles and kerosene lamps, increasing the risk of house fires. Schools lack projectors, computers and printers, leaving students ill-prepared for modern careers. Many young people leave the community in search of opportunities, while those who stay hope for progress. Health care facilities in Kewinal also suffer due to the absence of electricity. Medical centers cannot implement digital record-keeping systems, making it difficult to manage chronic illnesses. Additionally, local artisans, including woodworkers and potters, could double their incomes with access to electricity, providing economic stability and discouraging migration.

Water Scarcity in the Peruvian Andes

In Peru, water scarcity exacerbates energy challenges. Hydropower serves as a critical energy source in the Peruvian Andean-Amazonian basin, but farmers and hydropower plants compete for limited water resources. Droughts, worsened by global warming, have intensified this competition, leaving both sectors at a loss. Furthermore, irrigation for farming diverts water away from hydropower plants, reducing energy output and affecting surrounding areas. Research from the Natural Capital Project suggests collaborative strategies to balance agricultural and hydropower needs, promoting sustainable water usage and reducing conflicts.

Colombia and Ecuador

Communities in Colombia and Ecuador face similar crises, with drought and environmental degradation threatening energy production. High-altitude wetlands, known as paramos, play a critical role in water storage and distribution but have been degraded by deforestation, climate change and soil erosion. The energy crisis extends beyond rural areas, impacting urban centers like Bogotá, Colombia. Water shortages disrupt hydroelectric power, leading to rationing and the suspension of electricity exports. Conservation efforts aim to address these issues and restore balance.

Collaborative Efforts and Conservation Initiatives

Bolivia’s Electrification Program, supported by the Rockefeller Foundation, seeks to bring green energy to 56,000 rural households. Approved in 2023, the program focuses on delivering sustainable solutions to remote communities like Kewinal. “As we race to address the largest challenge of our time, the world’s most vulnerable must be prioritized. We cannot afford to leave the people of Kewinal – or anyone – behind,” says Ashvin Dayal, Senior Vice President at Power the Rockefeller Foundation.

In Ecuador and Colombia, conservation efforts led by organizations like the Fund for Protecting Water (FONAG) aim to revitalize ecosystems critical to water and energy production. FONAG has planted 40,000 water-storing paper trees and is cultivating an additional 100,000, demonstrating the potential for nature-based solutions to alleviate the energy crisis.

Looking Ahead

The energy crisis in the Andes represents a broader challenge of energy inequality and environmental degradation affecting vulnerable communities worldwide. Progress in electrification and ecosystem restoration offers hope, but significant challenges remain in reaching remote areas and addressing environmental damage. Indeed, efforts across the Andes highlight the importance of innovative, community-driven solutions and sustainable development. By prioritizing collaboration and conservation, stakeholders can potentially improve living conditions for rural populations and create a more equitable energy future.

– Michael Messina

Michael is based in Newburport, MA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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How Seaweed Biofuel Could Boost Investment in Barbados

Seaweed BiofuelBarbados generates around 95% of its electricity from imported fossil fuels, making energy expensive and environmentally unsustainable for the island nation. At the same time, the invasive Sargassum seaweed has overwhelmed its coastlines, damaging tourism—a sector that contributes nearly 17% of Barbados’s GDP. Researchers in Barbados have found a solution to both challenges: turning Sargassum seaweed into biomethane biofuel, a clean and renewable energy source. Tested successfully in a specially adapted vehicle, this breakthrough could reduce energy costs, restore tourism and position Barbados as a leader in sustainable energy innovation.

Seaweed Power Cars

The process of converting seaweed into fuel combines three key components: wastewater from the rum industry, sheep dung and Sargassum, a type of seaweed commonly found in Barbados. These elements undergo anaerobic digestion, producing a biofuel known as biomethane. This biofuel powers a specially modified Nissan Leaf owned by the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREE). While biofuel is currently limited to a test vehicle, it has the potential to become a mainstream energy source. Rum and Sargassum experts claim a petrol car can be upgraded to run fully on biomethane in just four hours.

Barbados’ Seaweed Challenge

In June 2018, the government declared a national emergency as the invasive plant inundated coastlines, creating significant economic challenges. The sheer volume of seaweed takes a large toll on the tourism industry in Barbados and has plagued its many hotels. According to STR, hotels unaffected by Sargassum experienced a 3% year-over-year increase in revenue per available room (RevPAR) in 2018, while those in affected areas saw declines of 4.4% in RevPAR and 4.7% in occupancy. The sheer volume of seaweed has burdened the country’s infrastructure and harmed its reputation as a pristine travel destination. However, if scaled up, the seaweed biofuel concept could offer a dual solution: powering a new generation of vehicles while removing Sargassum from coastlines.

Driving Investment and Economic Growth

Barbados has set an ambitious goal to become a 100% renewable energy and carbon-neutral island state by 2030. Seaweed-based biofuel aligns perfectly with this vision, positioning the country as a global leader in renewable innovation. Achieving this target would not only bring international recognition but also attract foreign investors eager to support sustainable projects. The country’s pioneering efforts could also open doors for international collaboration and funding in the renewable energy sector. According to the International Renewable Energy Agency (IRENA), investments in clean energy are increasing annually and Barbados’s proactive approach may secure a significant share of this funding.

Boosting Tourism with a New Purpose

The benefits of seaweed biofuel extend beyond energy. By creating value for Sargassum, Barbados can transform a long-standing problem into an economic asset. The incentive to clear beaches will increase, allowing the tourism sector to recover and thrive. Hotels that once struggled with declining occupancy due to the unsightly and smelly seaweed will regain their appeal, attracting visitors and boosting local businesses. For a country with a population of fewer than 300,000 people, this innovation places Barbados on the global stage. What began as a challenge with an invasive plant could now position the island as a leader in renewable technology and sustainable development.

Moving Forward

The development of seaweed-based biofuel in Barbados provides a practical solution to two longstanding challenges: renewable energy production and environmental management. By transforming Sargassum seaweed into a valuable resource, Barbados has an opportunity to lead in sustainable innovation. Furthermore, as the country works toward its carbon-neutral goals, this breakthrough could improve local energy independence, attract investment and restore its vital tourism sector, creating a cleaner and more resilient future.

– Andrew Nicoll

Andrew is based in Long Melford, Suffolk, UK and focuses on Business and Politics for The Borgen Project.

Photo: Flickr