In 2013, Todd Moss made a startling realisation while reviewing the energy usage of his family’s refrigerator in Washington, DC. The fridge, consuming 459 kWh annually, used more power than the average person in several African countries. Moss created a graphic comparing his fridge’s electricity consumption to per capita energy use in six African nations. The stark contrast resonated deeply, quickly spreading across media outlets and sparking discussions about the profound global divide in energy access. This moment drove Moss to establish the Energy for Growth Hub, an initiative aimed at tackling energy inequality on a global scale.
The fridge example vividly illustrates the deepening global disparity in energy access, highlighting how millions in low-income countries struggle to secure basic energy services while wealthier regions benefit from abundant electricity. This gap has severe economic and technological consequences. Energy inequality not only stifles wealth creation in underpowered regions but also limits access to transformative technologies fuelling economies elsewhere. Without equitable access to reliable energy, nations in the Global South risk falling further behind, deepening inequalities in wealth, health and innovation.
As of a 2021 study by the International Energy Agency (IEA), approximately 759 million people globally still lacked basic access to electricity, with the majority residing in Sub-Saharan Africa and South Asia. In Sub-Saharan Africa alone, around 75% of the population remains without access to electricity, hindered by infrastructure challenges and geopolitical instability.
Energy poverty and energy inequality, often conflated, refer to distinct challenges. Energy poverty describes households lacking sufficient energy to meet basic needs like cooking, heating and lighting. Energy inequality encompasses broader disparities in access and consumption, largely driven by economic and technological gaps.
To highlight the terminology further, energy poverty is not limited to the Global South. In the UK, the wealthiest 10% of households consume nearly five times more energy than the bottom 10%, highlighting stark inequalities. In 2018, around 13% of households in England, 25% in Scotland and 18% in Northern Ireland were classified as energy poor, struggling to afford basic energy services.
Even Germany, one of Europe’s largest economies, faces challenges. A 2021 study found that 16.5% of German households were at risk of energy poverty, with low-income families disproportionately affected by rising utility costs.
Energy inequality, on the other hand, is predominantly an issue in less developed nations, where inadequate infrastructure, challenging terrain and limited financial resources create significant barriers to building reliable energy sources. In many regions, rural or remote communities are cut off from centralised power grids entirely. It is both difficult and expensive to extend energy services to these localities, and even when energy arrives, affordability remains a major challenge. In contrast, developed countries generally have abundant energy infrastructure in all localities and high levels of accessibility.
Access to energy is a crucial determinant of whether communities can participate in the modern economy. In regions where energy is scarce or unreliable, people are locked out of opportunities to benefit from new technologies. The disparity in energy access widens inequality, making it harder for those without sufficient energy to access critical resources and expand on both healthcare and education. It also stifles economic growth and social mobility, leaving large populations unable to participate in today’s digital connected world.
This gap is especially pronounced when it comes to participation in the technological economy. Advanced technologies like artificial intelligence (AI) and renewable energy solutions are rapidly advancing but often remain out of reach for regions facing energy insecurity. As these technologies become central to global economic systems, the absence of reliable energy in poorer areas further entrenches inequality, side-lining energy-poor regions and making it difficult for them to integrate into this new eco-system. This creates a cycle where those with energy access accelerate, while those without are left behind.
To address the growing divide in energy access, empirical research is critical in identifying key indicators of energy inequality—accessibility, availability, affordability and reliability. Urgent action is needed to prioritise policies that address disparities and promote sustainable energy solutions to protect vulnerable communities from health inequality and climate impacts. If left unaddressed, this divide in energy access will stifle economic growth and technological progress, leaving large populations unable to participate in the benefits of a rapidly evolving world.
Leave a Reply
You must be logged in to post a comment.