Energy Poverty
Energy poverty has two faces. In developing countries: lack of physical access — 770 million still without electricity, 2.3 billion without clean cooking fuels. In advanced economies: affordability stress — 41 million Europeans couldn't keep their homes adequately warm in winter 2023, post the 2022 energy crisis. Both are major policy challenges; both are growing political concerns.
Key insights
Access vs affordability are two different problems
Sub-Saharan Africa: ~580 million people without electricity access. South Asia: ~70 million (down from 800M in 2000). These are problems of infrastructure provision — the grid hasn't reached households, or where it has, supply is unreliable. Affordability: even where households have grid connections, they may not be able to afford to use them adequately. Both are 'energy poverty' but require different policy responses.
2022 energy crisis spiked European fuel poverty
Russian gas cut-off in 2022 and the resulting price spike pushed energy bills 2-5× normal across Europe. ~41 million Europeans reported they couldn't keep their homes adequately warm in winter 2023. Government interventions (price caps, household subsidies) totaled €700B+ in 2022-23. Even with these, fuel poverty rose significantly. Most measures unwinding in 2024-25, but fuel-poverty rates remain elevated above pre-2022.
Cooking fuel is the silent killer
2.3 billion people cook with solid fuels (wood, charcoal, dung, crop residues) on inefficient stoves — predominantly women and young children exposed to high indoor air pollution. ~2.3 million annual deaths from household air pollution. Clean-cooking transition (LPG, electricity, biogas) has been slow. India's Ujjwala Yojana program enrolled 80+ million households in LPG; ongoing cost of refilling limits use. India electrification reached ~99% by 2023 but clean cooking remains at ~60%.
People without electricity access — by region
Millions of people without electricity, 2024
Key Finding: Sub-Saharan Africa accounts for most of the global access deficit.
EU fuel poverty rate — selected countries (2023)
% of population unable to keep home adequately warm
Key Finding: Bulgaria, Greece, Spain saw fuel poverty spike post 2022 energy crisis.
Methodology & caveats
Defining energy poverty
No single global definition. EU: '10% threshold' (energy spending >10% of income) or 'income after energy spending below poverty line'. UK: similar 10% threshold (now 'low income high cost' definition). Developing-country definitions emphasize access — having reliable electricity and clean cooking fuels. The two paradigms are different problems.
Why clean cooking is hard
Switch from solid fuels to LPG/electricity faces: upfront cost (stove, connection), recurring cost of fuel, distribution infrastructure, cultural habits and food traditions, intermittent supply in remote areas. India's Ujjwala showed connection can be subsidized; ongoing fuel cost remains barrier. Combining different solutions (improved cookstoves, LPG, biogas, induction) is needed. None alone solves it at scale.
Affordability measurement
Income-based measures depend on income data quality. Health-based measures (cold-related morbidity, hospitalization) capture outcomes but lag. Self-reported survey measures (Eurostat 'can you afford to keep your home adequately warm') capture experience but with potential bias. The EU has moved toward composite indicators including all three dimensions.