Access to reliable, affordable, and sustainable energy is foundational to human development. It enables everything from healthcare and education to economic growth and climate resilience. Yet today, an estimated 750 million people still live without access to electricity—most of them in remote or rural regions where national grid expansion is either too costly or technically unfeasible.

While governments and planners often focus on large-scale national grid infrastructure, this approach alone is insufficient. Even where grids are technically available, low-income households may remain unconnected due to high costs, lack of appliances, or limited perceived benefits.

This is where community energy systems come into play. These decentralized, often renewable-based microgrids or standalone systems can be tailored to meet the needs of specific communities. Whether it’s a solar-powered microgrid in rural sub-Saharan Africa or a biomass plant serving an off-grid village in Southeast Asia, such solutions can deliver clean, affordable, and resilient energy—especially where central grids fall short.

Opportunities & Benefits

• Tailored Solutions: Community energy systems are designed with local energy needs, usage patterns, and social dynamics in mind.
• Economic Empowerment: They create local jobs in installation, operation, and maintenance, and can catalyze productive uses of energy, such as agro-processing or refrigeration.
• Climate and Health Benefits: They reduce reliance on diesel generators or biomass, lowering greenhouse gas emissions and improving indoor air quality.
• Faster Deployment: They can often be implemented more quickly and cost-effectively than waiting for central grid extensions.

Challenges That Remain

Despite the promise, community energy systems are not without challenges:

• Financing and Business Models: Long-term sustainability requires viable economic models and often public-private partnerships.
• Policy Gaps: Many national energy plans still prioritize central grids over decentralized energy strategies.
• Maintenance and Local Capacity: Ensuring technical expertise and spare parts are available locally is essential for system longevity.

Policy Implications

If governments are serious about achieving Sustainable Development Goal 7—universal access to affordable, reliable, sustainable, and modern energy—they must integrate community energy systems into national energy frameworks. This includes:

• Enabling regulatory environments
• Investing in community-led project development
• Supporting innovative financing mechanisms

Ultimately, community energy systems represent more than just a technical solution. They are a socially inclusive pathway to universal energy access—empowering communities, driving development, and enabling resilience in the face of climate and economic challenges.