Around 675 million people still do not have access to energy – and demand is growing faster and faster, whether it be for households, running healthcare facilities or a prosperous economy. The International Energy Agency (IEA) predicts an annual increase in demand of more than three percent from 2024 – previously the increase was two percent annually. China, India and Southeast Asia account for the majority of this growing demand.
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.
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, supply must be expanded 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.
With its new commitments in 2022, KfW’s energy sector is also contributing to providing around 600,000 people with first-time or improved access to a modern energy supply. The promotion of energy efficiency is expected to save over 2,400,000 MWh of energy per year in the coming years. In addition, it is expected to generate over 1,000 MW of additional installed capacity from renewable energies (around 4,000 GWh of energy generated per year).
In 2022, more than EUR 3 billion of KfW Development Bank’s commitments were attributable to SDG 7. 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.