For many Aussies, abundant sunshine is a given, powering our homes and businesses. But for billions across the developing world, darkness persists. One in ten people still lack access to electricity, a basic necessity we take for granted, according to World Bank’s Energy Progress Report 2024. This energy poverty is a crippling barrier to health, education, and economic growth. There is a light at the end of the tunnel for these people, though—solar energy.
Solar energy provides a transformative opportunity for developing nations to build sustainable futures. But realising this potential needs more than just sunlight. It demands tackling a complex web of financial, technological, and political challenges. In this post, we’ll examine how solar energy can illuminate developing economies, exploring the remarkable progress already made and the hurdles that still need to be cleared.
The energy access gap
The scale of the energy access gap is staggering. For hundreds of millions, this is daily reality. Without electricity, healthcare suffers, Vaccines spoil without refrigeration, childbirth becomes riskier in the dark, and simple medical procedures are impossible.
Education is also compromised. Children struggle to study after sunset, limiting their opportunities. And economic development? Forget it. Businesses can’t operate without power, hindering job creation and stifling growth. The knock-on effects are profound, perpetuating cycles of poverty and inequality. For Aussies who enjoy near-universal electricity access, it’s easy to forget how fundamental power is to modern life.
However, consider this: access to reliable energy is the foundation upon which societies build prosperity and empower individuals. In an increasingly interconnected world, global disparities in energy access impact us all, affecting everything from economic stability to climate change mitigation efforts. Bridging this energy gap isn’t just a moral imperative; it’s a strategic necessity.
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A promising solution
Enter solar energy, a potential game-changer. Unlike fossil fuels, sunlight is abundant and, crucially, free. This represents a golden opportunity for developing nations, particularly those blessed with year-round sunshine. Solar power offers a decentralised solution, perfect for remote communities far from existing grids. Imagine villages, previously shrouded in darkness, now lit by solar-powered streetlights, allowing children to study after sunset and businesses to extend their operating hours.
Beyond lighting, solar can power vital infrastructure: pumping clean water, refrigerating medicines in rural clinics, and enabling farmers to irrigate their crops. The environmental benefits are clear: clean energy means cleaner air, reducing respiratory illnesses, and mitigating the impacts of climate change – a global challenge that disproportionately affects developing nations.
Moreover, the falling cost of solar technology makes it increasingly competitive with traditional energy sources. And the potential for job creation is significant, from manufacturing and installing solar panels to maintaining and repairing systems.
Solar energy in developing countries
Seeing how solar energy is already making a difference in developing countries provides inspiration and practical insights.
India
India, a nation of over a billion people, has emerged as a solar powerhouse. The numbers speak for themselves. According to the government’s 14th National Electricity Plan (NEP14), two-thirds of India’s power generation growth over the next decade will come from solar and wind, a dramatic shift from its coal-dominated past. The plan projects a staggering increase in solar generation, from 73 terawatt-hours (TWh) in fiscal year 2022 to a colossal 666 TWh by 2032.
However, this rapid expansion presents significant challenges. India must drastically accelerate annual solar installations to meet their targets, requiring a 36% year-on-year increase until 2027. This ambitious build-out faces challenges, including rising costs due to supply chain disruptions and other factors.
Moreover, integrating intermittent solar power into the grid poses a major challenge. As solar’s share grows, managing its fluctuating nature becomes essential. The “duck curve” phenomenon—the sharp evening peak in demand as solar generation drops—shows the urgent need for robust energy storage solutions and flexible power sources to balance supply and demand. India’s NEP14 acknowledges this, calling for significant investments in battery storage and pumped hydro. However, the scale and practical implementation of these investments remain crucial questions.
Balancing rapid solar deployment with grid stability, affordability, and the sheer logistical challenge of such a massive undertaking will be key to India’s success. How India navigates these complexities will provide valuable insights for other nations, including Australia, grappling with their clean energy transitions.
Rwanda
Rwanda, striving to become a middle-income country, has set an ambitious goal: universal electricity access by 2024. The goal was to combine grid connections (70%) and off-grid solar PV systems (30%). While Rwanda has made strides, with 73% electrification achieved through a combination of grid and off-grid solutions, reaching that final 27% is crucial and solar PV is a key component of this sustainable development strategy.
Rwanda possesses abundant renewable energy resources, yet development has been hampered by the high cost of capital and relatively low electricity prices from the grid. However, installations are accelerating due to rising energy prices and growing interest in public-private partnerships. International collaboration is playing a vital role. GIZ, for example, is working to connect local companies with German suppliers for renewable energy projects, focusing on sectors like agriculture, tourism, and healthcare. Their project pipeline includes numerous potential collaborations with a combined output of over 12 MW.
While Rwanda has made significant progress, challenges remain. Accessing supply chains for affordable solar equipment is a hurdle for small companies. Also, a skills gap in the renewable energy sector and a need for greater public awareness also present challenges. The high initial cost of solar systems, even with decreasing prices, and the need for grid adaptation are also factors. As Chacha Machera of Amerisolar USA notes, while solar irradiation is high, adoption is limited by these cost factors.
Organisations like Norrsken House Kigali, an entrepreneurship hub, also contribute to the solar push. They have installed a PV system on their building, meeting a significant portion of their energy needs. While battery storage remains expensive, the falling costs of solar and increasing grid parity make solar a more attractive option. As Abraham Augustine of Norrsken House Kigali points out, a friendly regulatory environment also helps to fast-track solar adoption. With international support, growing private sector involvement, and a transparent government commitment, Rwanda is poised to expand its solar capacity further and bring clean energy access to all its citizens.
Solar energy offers a powerful pathway to a brighter future for developing nations. From India’s ambitious large-scale projects to Rwanda’s focus on off-grid solutions, the potential is clear. However, realising this potential requires more than just harnessing the sun’s rays. Overcoming financial barriers, building technical expertise, and creating robust grid infrastructure are crucial. The challenges are significant, but the success stories emerging from around the world offer hope and valuable lessons.
As we’ve seen, international partnerships, innovative financing models, and a commitment to community engagement are key ingredients for success. For Australia, navigating its own energy transition, the experiences of developing nations embracing solar power provide a compelling reminder: renewable energy is not just about reducing emissions; it’s about building a more equitable and sustainable world for all.
