The 2021 Energizing Finance study — developed by international organization Sustainable Energy for All (SEforALL) in partnership with Climate Policy Initiative (CPI) and Dalberg Advisors — shows that for the seventh consecutive year, the world is falling perilously short of the investment required to achieve energy access for all by 2030.

The Energizing Finance research series is comprised of three reports that provide evidence, analysis, and recommendations on the strengths and shortcomings of finance commitments, disbursements, and needs to meet Sustainable Development Goal 7 (SDG7) access targets — access to affordable, reliable, sustainable, and modern energy for all by 2030. As part of that mission to drive faster action towards the achievement of SDG7, SEforALL has published the Energizing Finance series since 2017.

Dalberg specifically supported SEforALL with the Taking the Pulse 2021 report, which focuses on the volume and type of finance enterprises need to deliver energy access in select countries.

Through a combination of extensive local stakeholder consultations and advanced financial modeling of the growth of off-grid solar energy and clean cooking markets in Ghana, Mozambique, and Vietnam, Dalberg found that while access to energy has gained significant momentum in the last decade, reaching universal access to electricity and clean cooking access by 2030 will require a step-change in efforts.

A large share of the population continues to be underserved. This includes last-mile segments in peri-urban and hard-to-reach communities in rural areas primarily using firewood.

The report finds that achieving universal electricity and modern cooking access will cost at least $38 billion across Ghana, Mozambique, and Vietnam combined by 2030. Relying on improved cookstoves rather than liquified petroleum gas (LPG) for clean cooking could cut the overall costs down to $2.1 billion, although this would not be aligned with Sustainable Development Goal 7.

Importantly, the report also illustrates the energy affordability challenges people face in these countries and the need for financial support for consumers, such as demand-side subsidies. Providing results-based financing for energy project developers and exploring policies that facilitate demand-side subsidy support and reduce taxes on solar home systems are among several policy recommendations presented by Dalberg for Ghana, Mozambique, and Vietnam.

Download the full report here.