Lending expertise to end energy poverty

Almost 1 billon people around the world have no access to electricity, while millions more struggle with an erratic service and a limited supply. But the new Global Commission to End Energy Poverty seeks to change this, and the University of Cape Town (UCT) Graduate School of Businessʼs (GSB) Professor Anton Eberhard has been called in to help.

Eberhard, director of the GSB’s Power Futures Lab, has been selected to serve on the commission, which aims to fast-track the United Nations’ (UN) Sustainable Development Goal 7: universal access to cost-effective electricity by 2030.

The commission will be launched by the UN General Assembly in September and will operate under the joint chairmanship of The Rockefeller Foundation president Dr Rajiv J Shah, former United States (US) Secretary of Energy Ernest Moniz, and Africa Development Bank president Dr Akinwumi Adisina.

Many countries in sub-Saharan Africa continue to experience low levels of power generation and have a limited network infrastructure that delivers insufficient, unreliable and unaffordable power to existing customers.

However, according to the commission, technology innovation in the energy sector is opening up new opportunities to reach these previously under-served populations.

“The world of energy is changing faster than we can imagine,” said Eberhard.

“Distributed energy resources have become financially viable, offering new opportunities to get energy to those who need it most.”

“For example, distributed energy resources have become financially viable, offering new opportunities to get energy to those who need it most.

“Rapid proliferation of low-cost digital communications technologies, combined with steep drops in the cost of solar PV [photovoltaic panels], batteries, and energy efficient appliances is driving rapid innovation in off-grid electrification across sub-Saharan Africa and Asia.”

A coordinated approach

According to Eberhard, innovative, decentralised electrification businesses have shown that customers deemed unviable by traditional power utilities represent a highly addressable market. As a result, large energy companies and infrastructure investors are seeking opportunities to expand into this global market.

“A coordinated approach to grid and off-grid planning and investment has the potential to unlock new public-private partnerships that can dramatically bend the curve on ending energy poverty,” he said.

 The commission intends to forge a workable consensus among leading investors, utilities and policymakers that lays out a viable pathway for providing electricity to under-served homes and businesses more quickly, and in a more cost-effective manner than the current trajectory.

The greatest potential for improvement in the energy system lies in targeting the distribution of energy – where the power system comes into contact with the end consumer, according to Eberhard.

Three delivery modes

Off-grid solutions in the form of small-scale stand-alone solar systems and larger community mini-grids have started to fill the void left by the incumbent distribution companies in many low-access countries, he said.

“Commercial and residential stand-alone systems have proliferated largely without subsidies in rural and urban settings, but are beyond the financial reach of many bottom-of-the-pyramid consumers.

“The commission aims to coordinate the commercial, technological and regulatory development of three delivery modes – grid, mini-grid and stand-alone systems.”

“The commission aims to coordinate the commercial, technological and regulatory development of three delivery modes – grid, mini-grid and stand-alone systems.”

Eberhard brings a wealth of knowledge to the commission, having worked in the energy sector across sub-Saharan Africa and other developing regions for the past 35 years.

His research and teaching at the GSB focuses on governance and regulatory incentives to improve utility performance, the political economy of power sector reform, power investment challenges, and linkages to sustainable development sector companies.

He joins high-ranking representatives from the energy sectors of several African and Asian countries on the commission, along with investors, multilateral development banks, academics and leaders of utilities and off-grid firms.