9 December, 2024 ARE article

Catalysing sustainable development through DRE

ENGIE Energy Access

Decentralised Renewable Energy (DRE) stands as a transformative force in achieving the Sustainable Development Goals (SDGs). Its potential spans climate action, job creation, gender equality, education, health, and sustainable economic growth. By addressing pressing global challenges, DRE offers a clean, smart, and inclusive pathway to sustainable development.

The global community has pledged to achieve SDG 7, with a particular focus on providing clean energy access to those who still lack power. ARE emphasises the urgent need for all stakeholders to accelerate efforts and ensure the tangible delivery of energy access. This is essential, and DRE represents the most effective solution for the reasons outlined below.

Driving climate action: Mitigation at scale

DRE solutions hold remarkable promise for mitigating climate change. Achieving universal electricity access by 2030 through green energy mini-grids and standalone systems could prevent up to 626 million tonnes of CO2e emissions by that time (AfDB & ARE, 2024). This is a substantial contribution to global climate goals, showcasing the critical role of DRE in decarbonising energy systems and reducing reliance on fossil fuels.

Powering job creation & strengthening education

The economic potential of DRE is equally compelling, particularly in job creation. By transitioning to green power, DRE can generate 25 million direct jobs globally (GEAPP, 2021). However, a significant barrier remains: 70% of companies in emerging markets in the sector report challenges in finding skilled staff (ARE, 2022).

Addressing this gap requires investing in local workforce development. The ARE-led Cornerstone for Rural Electrification (CORE) initiative has already trained over 3,000 practitioners, laying the foundation for a skilled workforce capable of managing the growing demand for decentralised electrification. Such programmes are vital to ensuring that the transition to renewable energy is inclusive, empowering communities to drive and sustain their development.

Empowering women as agents of change

Women entrepreneurs are pivotal in leveraging DRE solutions to transform rural economies. Evidence shows that DRE systems have opened new opportunities for women in rural areas, empowering them to run sustainable businesses. Women-owned small and SMEs represent 30-37% of SMEs in emerging markets (ARE, 2020).

An ARE study. Women entrepreneurs are uniquely positioned to understand customer needs, leverage extensive local networks, and build trust around renewable energy products. Moreover, women tend to reinvest up to 90% of their earnings into their families and communities, fostering broader socio-economic benefits.

DRE solutions thus not only enhance women’s incomes but also amplify their decision-making power, driving more equitable development in rural communities.

Advancing health through electrification

Electricity is fundamental to quality health care and education, particularly in rural areas. The COVID-19 pandemic underscored the critical role of electricity in powering health facilities and supporting vulnerable populations. DRE systems provide an affordable, clean, and reliable energy source for rural healthcare facilities, ensuring uninterrupted services during crises and enabling long-term improvements in health outcomes (ARE, 2020).

A sustainable future with DRE

DRE is more than a technological solution; it is a catalyst for inclusive and sustainable economic development. By addressing climate challenges, creating jobs, empowering women, and strengthening essential services, DRE paves the way for a future where access to electricity is universal and equitable. With strategic investments in local skills and community-driven solutions, the promise of DRE can be fully realised, transforming lives and powering progress worldwide.

As we stand on the brink of this transformative era, the imperative is clear: to embrace DRE as a cornerstone of sustainable development and a beacon of hope for energy-poor regions. The time to act is now.

David Lecoque   |   CEO   |   d.lecoque@ruralelec.org