SDG 7 strives to achieve access to affordable, reliable, sustainable, and modern energy for all, and is the global goal against which we measure the progress of the green energy transition. Progress over the last decade has been considerable, as more than 1 billion people gained access to electricity between 2010 and 2021. However, we must pick up the pace to achieve the Goal by 2030 and overcome the challenge that lies in deploying technologies at scale, particularly in regions with limited access to clean energy.
Clean energy access remains a major challenge, especially in Africa, despite the fact that renewable energy prices have been falling steadily for over a decade, and annual commitments at events like the UNFCCC Conference of the Parties (COP) have become increasingly ambitious. Despite these commitments and the availability of the necessary technologies to scale the transition, much of the world has lagged in deploying renewable energy and energy efficiency measures. And nearly 600 million Africans still lack power, representing 83% of the global energy deficit.
The World Bank points out that great progress in technology and innovative financing mechanisms are rendering it increasingly feasible to close the energy access gap. The third edition of the World Intellectual Property Organization’s (WIPO) Green Technology Book, launched in Baku, Azerbaijan, at UNFCCC COP 29 in November 2024, highlights energy solutions for climate change across numerous sectors. The book showcases innovations that expand energy access in developing countries while also featuring new financing models that bridge the gap between technology and affordability. By connecting potential users with scalable, cost-effective solutions, these innovations offer a tangible pathway toward a more inclusive energy transition.
Decentralized energy resources are essential in providing clean energy access
According to the International Energy Agency (IEA), accelerating electricity access is essential to achieving SDG 7, and decentralized renewable energy plays a central role. Innovations in decentralized clean energy production are a game-changer for the energy transition. Decentralized energy resources provide a cost-effective solution to deliver electricity to off-grid or underserved communities, enabling access to power and fostering socioeconomic development in remote areas where extending the traditional grid would be too costly or impractical.
Solar panels, small-scale wind and water turbines, and battery storage are some of the key technologies driving this shift. These innovations not only help reduce carbon emissions but also make energy more affordable and provide resilience to local energy grids. In places where the electricity grid is underdeveloped or unreliable, decentralized systems provide a more stable and sustainable energy supply, helping to reduce energy poverty.
Mini-grids — localized, small-scale electricity systems — can operate independently or integrate with the main grid, delivering reliable power to communities. They are gaining traction in both developed and developing countries. In sub-Saharan Africa, where around 60% of the population lives in rural areas, 5% have access to clean electricity via 11 million active mini-grid connections, while microgrids and local energy networks can operate independently from the main grid during disruptions, and thereby also serve as an adaptation solution.
These technologies often encourage greater participation in the energy market, allowing consumers to also become “prosumers” — those who both produce and consume energy. This shift paves the way for innovative business models like peer-to-peer energy trading, where individuals or communities can buy and sell surplus energy from their solar panels or wind turbines, helping foster a more dynamic, decentralized energy ecosystem.
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Innovative financing can provide a crucial boost
For many communities, the transition to clean energy has long been hindered by high upfront costs and limited access to credit. The Green Technology Book highlights that innovative financing models, such as pay-as-you-go (PAYG) systems, help overcome these barriers. These models make clean energy solutions more affordable and accessible to underserved populations by allowing users to pay for energy services over time in smaller, manageable installments.
The PAYG model is often used for off-grid solar energy systems, where households make daily or monthly payments based on their energy usage. Likewise, various PAYG spin-offs have been adapted to new technologies, with “as-a-service” models offering subscription-based payments or fixed contracts for energy services. Customers avoid purchasing and maintaining equipment, while bundled solutions may include energy supply, storage, and management. These models offer lower-income households access to clean energy alongside flexible usage and scalability, with the service provider often handling installation, maintenance, and monitoring.
One example of this approach is energy-as-a-service. In Kenya, Hydroboxoperates a small hydropower plant that uses smart sensors for monitoring and forecasting, and can be co-financed using an energy-as-a service model.
Similarly, microgrid-as-a-service turns microgrids into a service that customers can subscribe to. In Brazil, Micropower Energy provides hybrid microgrid solutions with solar integration and storage. It sells energy and services to the customer, while the company owns and operates the microgrid, which eliminates operating and investment risks and responsibilities.
Other innovative models are also emerging to meet specific energy needs. Pay-as-you-cook models, like Burn in Kenya and Powerstove in Nigeria, provide cleaner cooking solutions to low-income households, even with the potential of generating carbon credits. Meanwhile, software-as-a-service models provide data management platforms that use artificial intelligence (AI) — such as the one hosted by Kilimo from Argentina, which uses data to help farmers enhance decision making, optimize water use, and improve crop yields.
We know that technology is a critical tool for the energy transition, and innovative financing models are facilitating the adoption of these solutions in remote underserved areas. By blending technological innovation with flexible financing options, we can ensure underserved areas gain access to clean energy, helping us achieve SDG 7 for clean and affordable energy for all.
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This article was originally published by the International Institute for Sustainable Development (IISD) and is republished here as part of an editorial collaboration with IISD. It was authored by Heather Jacobs from the World Intellectual Property Organization’s (WIPO).
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — Cover Photo Credit: Anaterate.
