For anyone reading this article, the benefits of electricity need not be explained.
Access to electricity is now an afterthought in most parts of the world, so it may come as a surprise to learn that 16% of the world’s population — an estimated 1.2 billion people — are still living without this basic necessity. Lack of access to electricity, or “energy poverty”, is the ultimate economic hindrance as it prevents people from participating in the modern economy.
Where are people still living in the dark, and how are these energy challenges being addressed? Let’s dive in.
Where the Grid Reaches, and Beyond
At this point in time, a majority of countries have 100% electricity access rates, and many more have rates above 95%. This includes most of the world’s high-population countries, such as China, Brazil, and the United States.
India is fast approaching that benchmark for access. The massive country has made great strides in a short amount of time, jumping from a 70% to 93% access rate in a single decade.
Meanwhile, North Korea is an obvious outlier in East Asia. The Hermit Kingdom’s lack of electrification isn’t just conspicuous in the data — it’s even visible from space. The border between the two Koreas is clearly visible where the dark expanse of North Korea runs up against the glow of South Korea’s urban areas.
It’s been estimated that more than half of North Korea’s people are living in energy poverty.
Africa’s Access to Electricity
In 1995, a mere 20% of sub-Saharan Africa’s population had access to power. While today’s figure is above 40%, that still means roughly 600 million people in the region are living without access to electricity.
Not surprisingly, energy poverty disproportionately impacts rural Africans. Nearly all of the countries with the lowest levels of electricity access have rural-majority populations:
|Global Rank||Country||Electricity Access||Rural Population|
|#190||🇸🇱 Sierra Leone||23%||58%|
|#188||🇧🇫 Burkina Faso||25%||71%|
Nonexistent and unreliable electricity isn’t just an issue confined to rural Africa. Even Nigeria — Africa’s largest economy — has an electrification rate of just 54%.
Where there is an electrical grid, instability is also causing problems. A recent survey found that a majority of Nigerian tech firms face 30 or more power outages per month, and more than half ranked electricity as a “major” or “severe” constraint to doing business.
This is pattern that is repeated in a number of countries in Africa:
Mini-Grids, Big Impact
It has taken an average of 25 years for countries to move from 20% to 80% access, so history suggests that it may be a number of years before sub-Saharan Africa fully catches up with other parts of the world. That said, Vietnam was able to close that gap in only nine years.
Traditional utility companies continue to make inroads in the region, but it might be a smaller-scale solution that brings electricity to people in harder-to-reach rural villages.
Between 2009 and 2015, solar PV module prices fell by 80%, ushering in a new era of affordability. Solar powered mini-grids don’t just have the potential to bring electricity to new markets, it can also replace the diesel-powered generators commonly used in Africa.
For the 600 million people in sub-Saharan Africa who are still unable to fully participate in the modern world, these innovations can’t come soon enough.
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Who’s Still Buying Fossil Fuels From Russia?
Here are the top importers of Russian fossil fuels since the start of the war.
The Largest Importers of Russian Fossil Fuels Since the War
Despite looming sanctions and import bans, Russia exported $97.7 billion worth of fossil fuels in the first 100 days since its invasion of Ukraine, at an average of $977 million per day.
So, which fossil fuels are being exported by Russia, and who is importing these fuels?
The above infographic tracks the biggest importers of Russia’s fossil fuel exports during the first 100 days of the war based on data from the Centre for Research on Energy and Clean Air (CREA).
In Demand: Russia’s Black Gold
The global energy market has seen several cyclical shocks over the last few years.
The gradual decline in upstream oil and gas investment followed by pandemic-induced production cuts led to a drop in supply, while people consumed more energy as economies reopened and winters got colder. Consequently, fossil fuel demand was rising even before Russia’s invasion of Ukraine, which exacerbated the market shock.
Russia is the third-largest producer and second-largest exporter of crude oil. In the 100 days since the invasion, oil was by far Russia’s most valuable fossil fuel export, accounting for $48 billion or roughly half of the total export revenue.
|Fossil fuel||Revenue from exports (Feb 24 - June 4)||% of total Russian fossil fuel export revenue|
|Liquified Natural Gas (LNG)||$5.4B||5.5%|
While Russian crude oil is shipped on tankers, a network of pipelines transports Russian gas to Europe. In fact, Russia accounts for 41% of all natural gas imports to the EU, and some countries are almost exclusively dependent on Russian gas. Of the $25 billion exported in pipeline gas, 85% went to the EU.
The Top Importers of Russian Fossil Fuels
The EU bloc accounted for 61% of Russia’s fossil fuel export revenue during the 100-day period.
Germany, Italy, and the Netherlands—members of both the EU and NATO—were among the largest importers, with only China surpassing them.
|Country||Value of fossil fuel imports from Russia (Feb 24 - Jun 4)||% of Russian fossil fuel export revenue|
China overtook Germany as the largest importer, importing nearly 2 million barrels of discounted Russian oil per day in May—up 55% relative to a year ago. Similarly, Russia surpassed Saudi Arabia as China’s largest oil supplier.
The biggest increase in imports came from India, buying 18% of all Russian oil exports during the 100-day period. A significant amount of the oil that goes to India is re-exported as refined products to the U.S. and Europe, which are trying to become independent of Russian imports.
Reducing Reliance on Russia
In response to the invasion of Ukraine, several countries have taken strict action against Russia through sanctions on exports, including fossil fuels.
The U.S. and Sweden have banned Russian fossil fuel imports entirely, with monthly import volumes down 100% and 99% in May relative to when the invasion began, respectively.
On a global scale, monthly fossil fuel import volumes from Russia were down 15% in May, an indication of the negative political sentiment surrounding the country.
It’s also worth noting that several European countries, including some of the largest importers over the 100-day period, have cut back on Russian fossil fuels. Besides the EU’s collective decision to reduce dependence on Russia, some countries have also refused the country’s ruble payment scheme, leading to a drop in imports.
The import curtailment is likely to continue. The EU recently adopted a sixth sanction package against Russia, placing a complete ban on all Russian seaborne crude oil products. The ban, which covers 90% of the EU’s oil imports from Russia, will likely realize its full impact after a six-to-eight month period that permits the execution of existing contracts.
While the EU is phasing out Russian oil, several European countries are heavily reliant on Russian gas. A full-fledged boycott on Russia’s fossil fuels would also hurt the European economy—therefore, the phase-out will likely be gradual, and subject to the changing geopolitical environment.
How Affordable is Gas in Latin America?
This graphic looks at gas affordability in Latin America, showing how much a liter of gas costs in 19 countries, relative to average incomes.
How Affordable is Gas in Latin America?
As gas prices have risen around the world, not each region and country is impacted equally.
Globally, the average price for a liter of gas was $1.44 USD on June 13, 2022.
But the actual price at the pump, and how affordable that price is for residents, varies greatly from country to country. This is especially true in Latin America, a region widely regarded as one of the world’s most unequal regions in terms of its income and resource distribution.
Using monthly data from GlobalPetrolPrices.com as of May 2022, this graphic by Latinometrics compares gas affordability in different countries across Latin America.
Gas Affordability in 19 Different Latin American Countries
To measure gas affordability, Latinometrics took the price of a liter of gas in 19 different Latin American countries and territories, and divided those figures by each country’s average daily income, using salary data from Statista.
Out of the 19 regions included in the dataset, Venezuela has the most affordable gas on the list. In Venezuela, a liter of gas is equivalent to roughly 1.3% of the country’s average daily income.
|Country||Gas price as of May 2022 (USD)||% of average daily income|
|🇩🇴 Dominican Republic||$1.41||12.6%|
|🇸🇻 El Salvador||$1.14||9.2%|
|🇨🇷 Costa Rica||$1.42||5.9%|
|🇵🇷 Puerto Rico||$1.35||2.2%|
This isn’t too surprising, as Venezuela is home to the largest share of proven oil reserves in the world. However, it’s worth noting that international sanctions against Venezuelan oil, largely because of political corruption, have hampered the once prosperous sector in the country.
On the other end of the spectrum, Nicaragua has the least affordable gas on the list, with one liter of gas costing 14% of the average daily income in the country.
Historically, the Nicaraguan government has not regulated gas prices in the country, but in light of the current global energy crisis triggered in large part by the Russia-Ukraine conflict, the government has stepped in to help control the situation.
As the Russia-Ukraine conflict continues with no end in sight, it’ll be interesting to see where prices are at in the next few months.
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