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Off-grid renewables sources  sources are a catalyst for economic empowerment and sustainable development, says IRENA

The landmark COP28 UAE consensus marked a pivotal moment in the global energy transition, setting ambitious targets to triple installed renewable energy capacity to 11.2 Terawatts and double energy efficiency improvements by 2030. Off-grid renewable energy has the potential to be a game- changer in reaching the targets, said the International Renewable Energy Agency (IRENA).
The Agency said that achieving these goals require more than large-scale infrastructure and makes the case for the tripling of off-grid renewables as a catalyst for sustainable development in rural communities.

"It demands targeted solutions to bridge the energy access gap in the world's most underserved communities."

According to IRENA, while the number of people without electricity has fallen from a billion in 2014 to 685 million in 2022, progress has slowed since 2018.

Sub-Saharan Africa now accounts for 83% of the global electricity access deficit, up from 50% in 2010. The Agency said this is a concerning trend that underscores the urgent need for decentralised energy solutions.

"This is where off-grid renewable energy steps in as a game-changer. Solar home systems (SHS) and mini-grids have become lifelines for last-mile communities, providing reliable electricity to low-income households and small businesses.

"In 2023 alone, these solutions benefitted 155 million people, powering homes, schools, healthcare facilities, and local enterprises".

Unlocking socio-economic benefits through off-grid renewable energy technology

Beyond mere electrification, off-grid renewables deliver profound social, economic and environmental benefits, making them a critical component of the Sustainable Development Goals (SDGs), said IRENA.

The technology is able to:

1. Tackle energy poverty (SDG7): Decentralised renewable energy solutions provide clean, reliable, and affordable electricity, reducing dependence on polluting fossil fuels.
2. Boost agriculture & food security (SDG2): Solar-powered irrigation and cold storage systems enhance agricultural productivity, helping farmers reduce post-harvest losses and increase food security. 3. Empower women & driving economic growth (SDG5 & SDG8): Access to off-grid power enables women entrepreneurs to start businesses, improving gender equality and supporting local economies. 4. Improve healthcare & education (SDG3 & SDG4): Rural health centres benefit from reliable electricity for vaccine refrigeration, medical equipment and emergency care, while students gain access to digital learning, extending their study hours with solar-powered lighting.
5. Enhance clean water & sanitation (SDG6): Solar-powered water pumps improve access to clean drinking water and sanitation facilities in remote areas.

Scaling up: Overcoming barriers to off-grid renewable deployment

Despite the undeniable benefits, significant challenges persist, including policy inconsistencies, regulatory hurdles and limited investment in the off-grid sector.

To triple off-grid renewables capacity from 12.9GW in 2023 to 38.7GW by 2030, IRENA emphasised the need for:

• Stronger policies and regulatory frameworks to facilitate deployment, streamline permits, and enhance market access.
• Integration of off-grid solutions into national electrification plans to ensure a coordinated approach.
• Greater investment and innovative financing models, including incentives such as tax exemptions and risk-mitigation measures.
• Development of local supply chains to support domestic manufacturing and job creation.
• Multi-sector collaboration to maximise the impact of off-grid power in agriculture, healthcare, and education.
• Gender-inclusive policies to ensure equitable participation and benefits for women in the off-grid energy sector.

Call for global cooperation

With off-grid renewables central to both climate action and socio-economic development, their expansion must be accelerated through international cooperation, said IRENA.
"IRENA continues to advocate for stronger multi-stakeholder partnerships, providing technical platforms, fostering multilateral collaborations and facilitating knowledge-sharing through initiatives such as the International Off-grid Renewable Energy Conference (IOREC)."

As the world strives for a just and inclusive energy transition, off-grid renewables are more than just a technology they are a catalyst for resilience, economic empowerment, and sustainable development in rural communities, the Agency said.