Electricity from a socket – this is still far from the norm in numerous countries. Modern energy is a key factor in successful economies and necessary for the fight against poverty. Global demand for energy is rising and according to the forecasts of the International Energy Agency (IEA), it will increase by around 40% by 2040. Developing countries and emerging economies account for the majority of this growth. For people's quality of life, access to modern forms of energy is an essential step. And only with a reliable energy supply can small and large businesses produce competitively. This is a crucial prerequisite for investment, jobs and income.
In view of climate change, it is clear that the current and increasing future energy demand cannot be met with fossil resources. KfW supports its partner countries in developing and converting energy systems sustainably.
The aim of UN Development Goal 7 is to “ensure access to affordable, reliable, sustainable and modern energy for all” by 2030. KfW Development Bank is working to achieve this goal with its projects, which also contribute to increasing the share of renewables in the energy mix worldwide and boosting energy efficiency.
In addition to the expansion of renewable energy capacities, their successful integration into local electricity markets is crucial for the success of a global energy transition. This requires huge investments in modern energy systems, especially in grid expansion, cross-border electricity trading, storage technologies and the digitalisation of consumption and grid management. KfW also advises its partner countries on how to adapt their regulatory framework to integrate the new technologies into the energy industry.
With the new commitments in 2022, KfW helped around 870,000 people gain access to modern energy for the first time or significantly improved their access. Promoting energy efficiency is expected to save over 2,400,000 MWh of energy annually in the coming years. In addition, there is over 1,152 MW of additional installed capacity from renewable energies (in about 4,000 GWh of generated energy/year).
Over EUR 3 billion of KfW Development Bank's commitments in 2022 were for SDG 7. Together with the other business areas of KfW Group which also promote climate-friendly energy generation in Germany and Europe, this makes KfW Group is one of the largest financiers of renewable energy worldwide.