Energy is a critical development issue: 1.6 billion people in the world lack access to electricity and over 2 billion people depend on biomass fuels for cooking and heating (UNDP, 2005). They have a legitimate right to and need for increased energy services which are affordable, healthier, more reliable, and more sustainable.
Energy issues are particularly challenging for developing countries in sub Saharan Africa where high energy costs are putting a tremendous amount of pressure on economies that are not only very fragile but also have little capacity to adapt to change. For example, about 80% of the energy balance in Burkina Faso is provided for by the natural vegetation and some 85% of the population depend on natural resources for their livelihood. Thus developing sound national energy development policies requires transparent processes that provide for equitable participation from all stakeholders.
Furthermore, it has been demonstrated by Goldemberg (2005) that energy has a determinant influence on the HDI [Human Development Index], particularly in the early stages of development. The same study also demonstrated the declining returns to human development and economic growth from increased energy consumption after approximately 1,000 kilograms of oil equivalent per capita. In other words higher energy consumption generates limited growth or human development in developed countries (and could arguably result in declines in human development and growth if externalities of consumption are taken into account), but increased access to energy is essential for growth and human well-being in developing countries.
In this context, the current global distribution of energy – with the richest billion people consuming over 50% of supply and the poorest billion using only 4% – clearly must change significantly if we are to meet development targets such as the Millennium Development Goals which, though they do not explicitly include energy, are reliant upon energy for their fulfilment.
