Around 685 million people still do not have access to energy according to SDG Report 2024 – and demand is growing faster and faster, whether it be for households, running healthcare facilities or a prosperous economy. According to the International Energy Agency (IEA), global electricity demand is expected to rise even faster over the next three years – by an average of 3.4 % annually through 2026.
At the same time, a change is called for – from fossil fuels to renewable energy. In view of the climate crisis, the growing demand must be satisfied by a sustainable supply. Work is therefore underway at full speed to increase the potential of renewable energies, especially in the countries of the global south.
A change in thinking is already underway: electricity from wind, water and sunshine is seeing increasing demand worldwide. The advantages of renewable energies are obvious. They are environmentally friendly, locally available and now also competitively priced. They additionally reduce dependence on imports. A lot has already happened here: the IEA sets new records for new installations every year, including in 2024. If this trend continues, renewable energies will account for almost half of global electricity production by 2028.
The aim of UN Development Goal 7 is to “ensure access to affordable, reliable, sustainable and modern energy for all” by 2030. To achieve this goal, however, supply must be expanded more quickly. This requires significantly larger investments, especially in grid expansion, cross-border electricity trading, storage technologies and the digitalisation of consumption and grid management. On behalf of the German federal government, KfW is involved in providing the necessary investments and is supporting its partner countries in creating and modifying energy systems in a sustainable manner – always under the premise of shaping change fairly so that it can succeed and endure ("Just Transition").
Working on behalf of the German Federal Government, KfW Development Bank is actively shaping the future of modern energy systems and energy infrastructure around the world. In 2024, it provided new financing totalling around EUR 2.1 billion, which is expected to contribute to achieving SDG 7. The financing agreements signed in 2024 are expected to provide more than 378,000 people with initial or improved access to modern energy supplies in the future. In addition, it is expected that over 91,000 MWh of electrical or thermal energy demand or consumption will be avoided annually and over 1,400 MW of additional power generation capacity from renewable energies will be provided in the coming years.
Together with the other business areas of KfW Group that also promote climate friendly energy production in Germany and Europe, KfW is one of the largest financiers of renewable energies worldwide.
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