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Research Project

This document discusses Sustainable Development Goal 7 (SDG 7), which aims to provide universal access to clean and affordable energy by 2030, highlighting the significant barriers faced by rural communities. It emphasizes the need for decentralized renewable energy systems, innovative financing mechanisms, capacity building, and effective policy frameworks to overcome these challenges. The case study of Kenya's M-KOPA demonstrates how innovative financing can enhance energy access and create local job opportunities.

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0% found this document useful (0 votes)
10 views6 pages

Research Project

This document discusses Sustainable Development Goal 7 (SDG 7), which aims to provide universal access to clean and affordable energy by 2030, highlighting the significant barriers faced by rural communities. It emphasizes the need for decentralized renewable energy systems, innovative financing mechanisms, capacity building, and effective policy frameworks to overcome these challenges. The case study of Kenya's M-KOPA demonstrates how innovative financing can enhance energy access and create local job opportunities.

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SDG 7: Enhancing the Rate of Access by Rural Communities to Clean and Affordable

Energy

Anmoldeep Singh (2412659)

Amandeep Singh (2423540)

Lovejinder Singh (2413201)

SUS200

Patricio Robles

June 22, 2025


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Introduction

The United Nations created a goal of Sustainable Development Goal 7 (SDG 7) in 2015,

which aims to provide sustainable access to affordable, reliable, sustainable, and modern forms

of energy by 2030. Although there has been advancement in technology, and renewable energy

costs have been declining, there is a serious inequality of access. Its energy (International

Energy Outlook 2023 - U.S. Energy Information Administration (EIA)) data also reveal that 775

million global citizens are living without electricity, with more 2.3 billion people using cooking

fuels that cause pollution. This paper is aimed at arguing that ensuring country status attainment

of SDG 7 in the rural regions should be a multidimensional program which encompasses

selective policy reforms, financial innovations, decentralization of energy systems, and global

collaboration.

Background and context

Access to energy is not only an issue of infrastructure, it is a source of development. In

the poorer areas of the world, especially in the sub-Saharan Africa and South and Southeast Asia,

electricity access is directly related to education, health, and economic opportunity

Fossil fuels have hitherto taken charge of the global energy supply as it contributes to

more than three-fourths of greenhouse emissions (Renewable Energy A Gender Perspective).

Though the use of solar and wind sources has grown substantially over the last ten years, the

renewable power contributes only 29 percent to the world power generation (Secretariat). These
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obstacles to adoption are even greater in the case of rural communities. These are, high cost, low

infrastructure and lack of information on the benefits of clean energy.

According to the International Renewable Energy Agency (Secretariat)mini-grids and off-

grid solar home systems are examples of decentralized renewable energy systems that are

especially appropriate to rural electrification. Their implementation is, however, rather slow

because of the lack of investment and gaps in policies.

Problem: Barriers to Universal Energy Access

Nevertheless, although clean energy has been on the horizon, several obstacles hamper

the achievement of SDG 7:

1. Regular high upfront costs: The cost of solar panel has continued to go down by over 80

percent since the year 2010, but still, the initial cost of equipment as well as installation is not

affordable to most households in rural areas without subsidy.

2. Poor Infrastructure: Because of financial constraints it is not always economical to extend

national grids to some rural or remote areas. Unreliable power supply is caused by maintenance

problems even where infrastructure is in place (Casati et al.).

3. Unpredictable reliable supply: Solar and Wind energy are not predictable, and are often

unreliable. Also, battery storage technologies are not readily available and too expensive to be

supplied on an ongoing basis.

4. Policy and Investment Disparities: There is weak policy and investment environment in many

developing countries to lure in the private investments in clean energy. It is estimated that the

level of investment needed to deliver universal access to electricity by 2030 will exceed 35
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billion dollars annually (International Energy Outlook 2023 - U.S. Energy Information

Administration (EIA)), and the existing financial flows do not even come close to this mark.

5. Ignorance and competency: Where high levels of ignorance pertain to renewable energy

system and there are no competent technicians, adoption and sustainability are a problem.

Pay-As-You-Go Solar in Kenya Case Study

Kenya has pioneered off-grid solar solutions by creating innovative ways of financing.

M-KOPA is a Nairobi-based firm that offers solar packages to underprivileged homes with a pay-

as-you-go (PAYG) system. Customers are able to own the system by having to pay small

amounts everyday via mobile money services such as M-Pesa.

By 2023, M-KOPA has reached over 1.5 million houses, and it shows that affordability

can be resolved with ingenuity to finances (“M-KOPA Releases the 2023 Impact Report”)

Besides increasing energy access, this model has also created job opportunities within the local

communities. The M-KOPA success is clearly evidence of how technology can be combined with

micro-financing to develop scalable and sustainable solutions to energy.

Solutions and Pathways Forward

The following strategies are needed to enable access to energy with the aim of

accomplishing SDG 7:

1. Decentralized Renewable Energy Systems: Off-grid and solar mini-grids have the potential to

provide weaker national grids to bring electricity to otherwise remote regions more cheaply than

what would be required of national grids. The systems are adaptable, scalable, and may be

managed by the community.


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2. New Financing Mechanisms: Micro-financing, PAYG models and energy-as-service solutions

have the capacity to reduce the barriers of entry to low-income households. Project financing can

be supported by the international development banks and climate funds that can de-risk

investments.

3. Capacity Building and Local Engagement: The local technician can be trained and

communities informed about the advantages of clean energy, which is a great way to increase

acceptance rate and guarantee long term sustainability of the installations.

4. Effective Policy Frameworks: They need strong policies, which should be long term in nature,

to promote the renewable energy. This involves government subsidies on clean energy resources,

tax credit to individual investors and elimination of subsidizing fossil fuels.

Conclusion

SDG 7 is not the energy goal; it is a goal of development. Universal access to clean and

affordable energy has a power to change lives, decrease inequalities, and safeguard the planet.

But it will work out only when economic, infrastructural and political issues are tackled.

Innovation funding through decentralized renewable system, inclusive policies and international

support, can take even the most marginalized communities even to the most marginalized.
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References

Casati, Paola, et al. “Clean Energy Access as an Enabler for Social Development: A

Multidimensional Analysis for Sub-Saharan Africa.” Energy for Sustainable Development, vol.

72, Feb. 2023, pp. 114–26. DOI.org (Crossref), https://doi.org/10.1016/j.esd.2022.12.003.

International Energy Outlook 2023 - U.S. Energy Information Administration (EIA).

https://www.eia.gov/outlooks/ieo/.

“M-KOPA Releases the 2023 Impact Report.” M-KOPA, https://www.m-kopa.com/newsroom/m-

kopa-releases-the-2023-impact-report

Renewable Energy A Gender Perspective. 12 Jan. 2019,

https://www.irena.org/Publications/2019/Jan/Renewable-Energy-A-Gender-Perspective.

Secretariat, REN21. “REN21 Renewables Global Status Report.” REN21, 14 June 2019,

https://www.ren21.net/reports/global-status-report/.

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