Can Someone with Electricity Still Be Energy Poor?

Almost 92% of people worldwide have access to electricity. So, if a staggering majority of the globe is connected, “energy poverty” must be low, right?

Wrong.

Hidden behind that number is a more telling fact: around 40% of the world’s population consumes less electricity than it takes to run the average American refrigerator. As I write this and you read it, we likely belong to the 60% that uses plenty of electricity.

So, what does it mean to be “energy poor”?

It is more than simply lacking electricity. Energy poverty describes a state in which households lack access to reliable, affordable, and modern energy services, whether for lighting, fuel for cooking, or power for businesses.

A few years ago, I lived through months of scheduled blackouts in Ecuador. Droughts caused electricity to be extremely unreliable, with programmed blackouts reaching 12 hours a day at times. I saw firsthand how these disruptions affected everyday life — from schools and businesses to basic household routines — and how energy insecurity can shape economic stability, long-term planning and quality of life. Access to electricity does not always translate into reliable power and this unreliability goes beyond being an inconvenience. Energy poverty itself can become something more insidious: a poverty trap. A self-reinforcing cycle where today’s constraints make it harder to improve tomorrow’s outcomes.

When electricity is scarce or unpredictable, households and businesses adapt by lowering expectations, and this uncertainty drives behavior. Investments that depend on reliable power—expanding a business or continuing education—become risky decisions. Why invest in a computer if electricity may not be available tomorrow? Why open a workshop if operating costs are volatile?

In this way, energy poverty is not just a lack of access; it is a source of uncertainty that discourages long-term investment and reinforces poverty.

Where is this happening?

This challenge confines many areas of the world, but nowhere is it more pronounced than in sub-Sarahan Africa. Around 600 million people lack access to electricity, and many more have connections that are weak or unreliable.

Take Ethiopia. With electricity access at over 55%, up from only 29% in 2015, it appears to be making progress. But this number obscures the reality: over 60 million Ethiopians still lack access to electricity. Furthermore, for those who are connected, reliability is far from guaranteed. Many firms rely on backup generators, and the direct and indirect costs of power interruption can total to almost ~$1,000 per month. In a country where GDP per capita is around $1,130, this cost is significant. Now we can begin to see why this matters: access alone does not create opportunity—reliability does.

But, how do we measure energy poverty?

Traditional poverty measures, like the headcount ratio, focus on income alone. But income does not capture whether a household has access to reliable electricity, clean cooking fuel, or basic infrastructure.

The Multidimensional Poverty Index (MPI) helps address this gap. By incorporating indicators across health, education, and living standards—including electricity—it provides a more complete picture of deprivation. In a country like Ethiopia, this matters. Energy poverty is not just one challenge among many; it is the constraint that shapes all others.

What comes after access?

Global development efforts are taking on the challenge. Initiatives, such as the World Bank Group’s Mission 300, aiming to connect 300 million people in Sub-Saharan Africa to electricity by 2030 are helping. Expanding access is an essential first step, followed by improved reliability and affordability of energy systems across the continent. Because access alone is not enough. A connection that is unreliable, unaffordable, or unable to support productive uses may do little to reduce energy poverty.

When energy is uncertain, opportunity and jobs are too. Reliable, affordable energy reduces uncertainty, enabling households and businesses to plan, invest, and grow. Whether through decentralized solar systems or grid expansion, energy infrastructure can provide the stability that development depends on. 

Where power is reliable and affordable, overall poverty reduction gains the stability it needs to last.