The Role of End-User Subsidies in Closing the Affordability Gap| Climate Policy Initiative

Electricity access remains a significant global challenge, with only incremental progress made to date towards achieving Sustainable Development Goal 7 (SDG7) – access to affordable, reliable, sustainable and modern energy for all by 2030. The International Energy Agency (IEA) estimates that while the share of the global population with access to electricity grew to 90 percent in 2019, 759 million people still lack access to even basic levels of electricity. Of this number, 75 percent live in Sub-Saharan Africa (SSA) (IEA et al. 2021). There is growing consensus among key stakeholders that the costs of electricity products and services are unaffordable for the world’s poorest and most marginalized households.