As an inherent factor of growth, energy is strongly interrelated with development, and access to energy is central to improved social and economic well-being. While enhancing the productivity of income-generating activities, access to energy eventually contributes to eradication of poverty and diversification of income sources.

Today, access to affordable and sustained energy services has a multiplier effect on both economic and social growth. As an inherent factor of growth, energy is strongly interrelated with development, and access to energy is central to improved social and economic well-being. While enhancing the productivity of income-generating activities, access to energy eventually contributes to eradication of poverty and diversification of income sources. However, currently, one billion people still don’t have reliable access to electricity.

Considering that the ecosystem services are being degraded over the past fifty years, and shifting ecosystems have been negatively affecting the sustainability of economic development, reversing the degradation of ecosystems in requires further use of renewables such as hydropower, wind, solar and biogas. However, the scale of renewable energy deployment remains low.

Thus, financial incentives are required to assist the private sector to pioneer renewable energy projects due to high upfront investment costs. Also, enhancing the data management of the renewable energy industry and adopting relevant regulations are required to build the trust of the private sector.

The governments should provide financial incentives to promote renewable energy production, as the vast potential has been underutilized in many countries. To accelerate the role of renewables, countries should set up a mechanism for capacity building, technical transfer, and the best practices. 

Energy Transition

The energy transition for energy supply, which is critical for an environmentally friendly and secure future, requires moving away from fossil fuels towards renewables along with improved energy efficiency. An effective energy transition fosters economic growth, affordability and access to energy.

With the improving technologies of wind power and photovoltaics, wind and solar energy have been getting cheaper and constituting the most important forms of renewables.

Although there are positive signs of progress towards energy transition, climate change still poses significant risks. The collective efforts towards energy transition are insufficient and the world is far from being on track to achieve the Paris climate goals.

Energy Efficiency & Energy Conservation

Energy efficiency is not energy conservation. Energy efficiency is using less energy to provide the same service”, such as replacing an incandescent lamp with a compact fluorescent lamp (which uses less energy to produce the same amount of light). Thus, energy efficiency mainly requires changing the operation of electricity driven devices to meet the desired energy services with less electricity input. 

On the other hand,  energy conservation is reducing or going without a service to save energy, such as turning off a light when not in use. Energy conservation is essentially reducing the need for energy services.

Both efficiency and conservation can reduce greenhouse gas emissions. But, the role of energy efficiency in meeting s growing demand for energy services is substantial. Through technical improvements and increasing deployment of devices in all parts of the economy, most of the growth in energy services has been met by more efficient devices.

Supporting Deployment of Electric Vehicles (EVs)

Electric vehicle owners or prospective buyers usually suffer from “range anxiety”, and they are mainly concerned about running out of charge or how far they can go on a single charge.

From a technical standpoint, electric vehicle manufacturers focus on improving the overall performance of these vehicles, in particular,  reducing the battery cost, increasing the vehicle range,  making batteries safer, and reducing charge times.  All of these innovations help vehicle owners reduce range anxiety and increase the demand for EVs.

Also, deploying more charging stations, providing EV purchase subsidies, and reducing taxes for electric vehicles can help access large numbers of new potential customers.