Electricity alone is not enough to spur economic development, but it’s a contributing factor. More than half a billion of people in Africa have no access to electricity, which corresponds to 26 per cent of the continent’s entire population. At the same time, almost two and a half billion people around the world use wood and other biomass for cooking and heating, bringing with it major problems like deforestation, reduced biodiversity, health related problems and greenhouse gas emissions.
The evolving climate change demands a clear shift towards renewable energy resources. Sweden should work towards the development of reducing the energy production’s negative effects on the environment. At the same time, access to sustainable energy should be increased, especially for the poor. Sida’s support to the energy sector is consequently focusing on the development and construction of sustainable energy systems, energy optimisation and new technology. Sida supports programmes and projects on a global, regional, national and local level, which in 2010 amounted to SEK 410 million.
Another crucial factor to create a sustainable energy sector is establishing appropriate and effective institutions. The second major part of Sidas energy support is consequently used to support institutional reforms and improvement of laws within the energy sector.
DemoEnvironment is a programme carried out by the Swedish Agency for Economic and Regional Growth, in cooperation with Sida. The programme gives small and middle-sized companies in participating countries a possibility to try out new technologies within the area of renewable energy resources.
Sida also channels support in terms of loans and guaranties. If developing countries need to invest in large infrastructure projects, they can access risk capital through these channels.
