Energy efficiency improves energy access affordability

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Journal Article

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Energy efficiency can make energy access more affordable by reducing the electricity cost burden on households and businesses. Improving products’ energy efficiency helps reduce monthly energy bills— freeing up funds that can feed back into the economy, thus stimulating economic growth. To demonstrate these benefits, this paper conducts a cost-benefit analysis (CBA) and a national impact analysis (NIA) for implementing an energy-efficiency standards and labeling (EESL) program for refrigeration products in Uganda. The CBA compares the costs versus the benefits of investing in energy-efficient products for consumers: It shows that the most cost-effective products have an efficiency level 35 % higher than baseline products sold on the market. By choosing these products, consumers save, on average, US$76 over the lifetime of the product. The NIA assesses the impact of an energy-efficiency standard set at that level and shows potential cumulative savings of US$595 million (2023–2040) for households and small businesses. These savings translate into additional purchasing power for households and investments for small businesses, leading to increased living standards and economic development. This paper describes the importance of implementing energy efficiency policies and programs in emerging economies where affordability of electricity hinders electricity access. This paper provides a rigorous approach of using CBA and NIA assessments to demonstrate the economic savings for the consumers and the nation to implement EESL programs for major electric equipment.


Energy for Sustainable Development



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