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Informing the Financing of Universal Energy Access: An Assessment of Current Flows

Author

Listed:
  • Morgan Bazilian

    (United Nations Industrial Development Organization)

  • Patrick Nussbaumer

    (United Nations Industrial Development Organization)

  • Giorgio Gualberti

    (Technical University of Lisbon)

  • Erik Haites

    (Margaree Consultants Inc.)

  • Michael Levi

    (Council on Foreign Relations)

  • Judy Siegel

    (Energy and Security Group)

  • Daniel M. Kammen

    (The World Bank)

  • Joergen Fenhann

    (UNEP Risoe Centre, Technical University of Denmark)

Abstract

Energy poverty is widely recognized as a major obstacle to economic and social development and poverty alleviation. To help inform the design of appropriate and effective policies to reduce energy poverty, we present a brief analysis of the current macro financial flows in the electricity and gas distribution sectors in developing countries. We build on the methodology used to quantify the flows of investment in the climate change area. This methodology relies on national gross fixed capital formation, overseas development assistance, and foreign direct investment. These high-level and aggregated investment figures provide a sense of scale to policy-makers, but are only a small part of the information required to design financial vehicles. In addition, these figures tend to mask numerous variations between sectors and countries, as well as trends and other temporal fluctuations. Nonetheless, for the poorest countries, one can conclude that the current flows are considerably short (at least five times) of what will be required to provide a basic level of access to clean, modern energy services to the “energy poor”.

Suggested Citation

  • Morgan Bazilian & Patrick Nussbaumer & Giorgio Gualberti & Erik Haites & Michael Levi & Judy Siegel & Daniel M. Kammen & Joergen Fenhann, 2011. "Informing the Financing of Universal Energy Access: An Assessment of Current Flows," Working Papers 2011.56, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2011.56
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    References listed on IDEAS

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    Cited by:

    1. Krupa, Joel, 2012. "An indeterminate future: Assessing the need for greater US–Canada transmission integration," Utilities Policy, Elsevier, vol. 23(C), pages 99-101.
    2. Alfonso Carfora & Monica Ronghi & Giuseppe Scandurra, 2017. "The effect of Climate Finance on Greenhouse Gas Emission: A Quantile Regression Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 185-199.
    3. Mathilde Brix Pedersen, 2016. "Deconstructing the concept of renewable energy-based mini-grids for rural electrification in East Africa," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 5(5), pages 570-587, September.
    4. Bhattacharyya, Subhes C., 2013. "Financing energy access and off-grid electrification: A review of status, options and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 462-472.
    5. Andrea Vaona & Natalia Magnani, 2014. "Access to electricity and socio-economic characteristics: panel data evidence from 31 countries," Working Papers 15/2014, University of Verona, Department of Economics.
    6. Taibi, Emanuele & Gualberti, Giorgio & Bazilian, Morgan & Gielen, Dolf, 2016. "A framework for technology cooperation to accelerate the deployment of renewable energy in Pacific Island Countries," Energy Policy, Elsevier, vol. 98(C), pages 778-790.

    More about this item

    Keywords

    Energy Access; Energy Finance; Financial flows;

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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