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To become prosperous and globally competitive, emerging economies require reliable, affordable, and abundant energy for industry and households
Energy is essential for economic growth and the basis of modern lifestyles, yet more than a billion people worldwide live without access to electricity. For millions who may have some access, power is too unreliable or expensive to achieve real prosperity. Boosting generation and expanding access are top priorities for African governments and their partners, including through the US Power Africa Initiative and the Electrify Africa Act. CGD research seeks to redefine what the world means by “modern energy” and to suggest ways to provide energy at scale for development to flourish.
In the past decade, Ghana has experienced severe electricity supply challenges even though installed generation capacity has more than doubled over the period. The electricity supply challenges can be attributed to a number of factors, including a high level of losses in the distribution system as well as non-payment of revenue by consumers. Solving Ghana’s electricity challenges would require a range of measures.
This paper finds that end-user financing (i.e. consumer subsidies and tax rebates) is relatively ineffective at enhancing sales of off-grid solar technologies in India. If the government is to make meaningful progress toward its national goal to extend a constant supply of electricity to every household in the coming years, it will need to learn from and adapt its current financing structures for off-grid solar (and other renewable energy) technologies.
We present results below from a survey of shop owners who are part of the Indian government’s Akshay Urja Solar Shops program. To our knowledge, the Akshay Urja program has not previously been evaluated. These results build on a case study featured in an upcoming CGD policy paper on clean energy access entitled, “Financing for Whom by Whom? Complexities of Advancing Energy Access in India.”
Are some countries too poor to consume a lot more energy? Or is income growth being held back by a lack of reliable and affordable electricity? While there is a strong relationship between energy consumption and income, the direction of causality is often far less clear. One way to estimate unmet demand may be to try to compare pairs of countries—e.g., how much additional energy does Kenya need to reach the level of Tunisia?
Ijeoma Onyeji-Nwogu, Morgan Bazilian and Todd Moss
The rise of disruptive technologies is profoundly transforming systems of production and management across sectors and industries, but primarily in wealthy countries. This paper considers how disruptive technologies could help improve power sector reform and development in African markets. In particular, it explores the role that might be played by the Internet of Things, cloud computing, and advanced analytics.
This August, President Obama will host 47 African Heads of State in Washington. The agenda will focus heavily on promoting greater trade and investment ties between the US and the region’s fast growing economies. Amongst other things, this emphasis will play a critical role for the Obama Administration’s Power Africa Initiative and plans for modernizing the African Growth and Opportunity Act.
Of the many outcomes in the FY2014 Omnibus Appropriations legislation, one that stood out was buried in section 7081. This provision now allows the Overseas Private Investment Corporation (OPIC) to invest in fossil fuel power projects in IDA and IDA-blend countries. In other words, OPIC’s carbon cap has been lifted at least until the end of September.