Keywords

Reaching affordable, clean, sustainable, modern and reliable energy is the main aim of the Sustainable Development Goal 7. Energy is placed at the centre of environmental and economic issues. Despite this significance, 20% of people living worldwide cannot access electricity in 2021. Also, the utilisation of renewable energy sources must increase because of the high-level demand for energy. For example, the ratio of people reaching for clean energy for cooking has increased from 50% in 2010 to 66% in 2019 (United Nations 2021a). The renewable and non-renewable energy sources are obtained from the environment. Examples of these energy sources are coal, natural gas, petroleum, hydropower, solar wind, etc. Energy sources, including fossil fuels and renewables, are in high demand worldwide. Despite excellent progress in expanding access to power, increasing the use of renewable energy in the electrical sector and improving energy efficiency during the past decade, the world remains far from obtaining cheap, dependable, sustainable and contemporary energy for all. With an average yearly electrification rate of 0.876 percentage points, the worldwide power access rate improved from 83% in 2010 to 90% in 2019. The worldwide access deficit has shrunk from 1.22 billion in 2010 to 759 million in 2019. Despite significant efforts, there may still be 660 million people without access to electricity in 2030 (United Nations 2021b). Whereas bioenergy is the most common renewable energy source, approximately three billion are utilising the energy sources such as wood, coal, animal waste and so on (United Nations 2021a).

Since 2010, the number of people who have gained electricity access has exceeded a billion, making it possible for 90% of the world population to be linked in 2019. Despite this, 759 million people lack access to electricity, and the majority of these people live in areas that are unstable or affected by conflict. While regional differences continue to exist, the global electricity access deficit concentration is located in Sub-Saharan Africa, accounting for 75% of the gap on a global scale. The number of people without access to electricity is less than 2% of the population in Eastern Asia, Southeast Asia, Latin America and the Caribbean. In Sub-Saharan Africa, this number is around 50%. Within countries with major access deficits, Bangladesh, Kenya and Uganda have shown the largest improvements since 2010. This is attributable to more than three percentage points annual electrification growth rates, largely due to an integrated approach that combines grid, mini-grid and on-grid solar electrification (IRENA 2021a).

According to new data released this year, the number of individuals without access to low-carbon cooking equipment has steadily decreased. Since 2010, around 450 million individuals in India and China have acquired access to clean cooking due to clean air policies and liquefied petroleum gas (LPG) transition programmes. The problem in Sub-Saharan Africa is very severe, and the situation is deteriorating. Only 17% of the population has access to safe cooking water. Over 2.6 billion people in the world still lack access, and household air pollution, caused by cooking smoke, is responsible for roughly 2.5 million early graves each year (IEA 2020).

From 63 (56–68)% in 2018, the percentage of people in the world who have access to clean cooking fuels and technology rose to 66% (confidence ranges of 59–71%) in 2019. There were 2.6 (2.2–3.1) billion people in the world who did not have access to the Internet. Clean fuels and technologies were only nine percentage points more accessible in 2018 than in 2010 when 57% (52–62%) of the world population had access. According to current trends, the world will not be up to the 2030 universal access objective by about 30%, reaching only 72% of the population. To accomplish the aim of universal access to sustainable fuels and technology by 2030, annual increases of more than three percentage points would be required (The Energy Progress Report 2021 2021).

Renewable energy comes from naturally renewing but flow-limited sources; renewable resources are nearly limitless in terms of duration but have a limited amount of energy per unit of time (EIA 2020). Technological advancements have increased the consumption and interest in renewable energy sources, owing to rising pollution and rapid fossil fuel usage. Many nations debate energy, energy security and global warming, and rules are being developed in this context. The United Nations (UN) is responsible for the most important pioneering study in this subject. The energy sources listed below are the most well-known renewable energy sources.

The energy produced by the use of sunlight and heat is called solar energy. Solar energy has different uses, and these can be generating electricity from solar energy or heating air and water. The use of solar energy in the world is increasing day by day, and by the end of 2020, more than 700 GW of energy will be produced from the sun, which will equal approximately 3% of the energy consumed in the world (ARENA 2021).

Winds occur in various regions of the world depending on atmospheric events. Winds, moving air, cause kinetic energy, which can be converted into electrical energy with the help of wind turbines (IRENA 2021a, b). The use of both onshore and offshore wind turbines has increased significantly in the last 20 years for electricity generation from wind energy. While there was a production capacity of 7.5 gigawatts (GW) in 1997, this figure increased approximately 75 times in 2018 and reached 564 GW. Electricity generation using wind energy has more than doubled from 2009 to 2013 and equalled 16% of the energy produced using renewable energy sources in 2016 (IRENA 2021b).

One of the commercially developed renewable energy technologies is hydroelectric energy technologies. In this technology, a reservoir for water is created, usually using a large area. The water accumulated in this reservoir is released when energy is needed, and it turns the turbines into the dam to generate energy. The difference between this energy source and other renewable energy sources is that it provides continuity. While solar energy and wind energy can sometimes cause fluctuations in production in energy systems, energy can be produced when needed in hydroelectric energy systems (EDF 2021).

Geothermal energy originates from the heat underneath the Earth’s surface. The causes of this heat are the actions that take place inside Earth and the planet’s structure. Although this heat is practically endless, it is not allocated evenly under every part of the surface (Barbier, 2002). Places where geysers or fault lines are located are more suitable for geothermal energy production. Produced energy can be utilised in heating and electricity. Worldwide total installed geothermal energy capacity was 14,013 MW in 2020 (IRENA 2021a).

Biomass mostly derives from organic waste generated by plants and animals. It can be used to produce liquid, gaseous or solid biofuel by biological, chemical or thermochemical conversion processes and to produce heat by directly burning it (EIA 2021). Worldwide total installed bioenergy capacity as liquid, gaseous or solid biofuels was over 130,000 MW in 2020 (IRENA 2021a).

The ratio of the amount of consumed energy and created specific output is called energy efficiency. In final usage areas such as manufacturing, buildings, construction, agriculture and transportation, highly efficient technological instruments are key to achieving efficiency goals. Emission savings and air quality are directly associated with energy production and efficiency levels, so any effort to improve efficiency in final usage areas and electricity production would contribute massively against the GHG problem. Governmental energy policies are major impulses for efficiency and consumption rates, but private efforts such as digitalisation in industry and residences are similarly effective only when they are practised collectively. For instance, it is predicted that digitalisation in the building sector could cut CO2 emissions by 10% in 2030 (IEA 2019). The building sector includes the construction industry and residential usage and represented 36% of total energy consumption in the world in 2018 (Global Alliance for Buildings and Construction 2018). A conceptual residential digitalisation includes smart grid infrastructure, IoT-enabled learning algorithms, management and edge computing systems (Küfeoğlu 2021). Industrial digitalisation advanced rapidly due to high energy usage density per facility, but in comparison, single houses have much lower energy usage density. Thus, only a collective switch to smart houses and smart grid systems would make a difference in global energy efficiency.

Other high energy density industries such as manufacturing and agriculture are quite open fields for automatisation and digitalisation, and at some point, energy-saving actions in these fields must be taken by machines and intelligent systems instead of humans to get rid of human intervention and error (Küfeoğlu 2021). Even though intelligent systems have a cost at the beginning, long-term effects include, first and foremost, energy efficiency, positive budget changes, air quality and individuals’ well-being.

One of the goals in SDG-7 is to increase access to clean energy through international cooperation. This direction supports research and development projects on clean energy, energy efficiency and cleaner fossil fuel technologies (United Nations 2021a). In addition, incentives are provided for investments in the energy infrastructure with the studies to be carried out. To achieve this goal, investments to be made by developing countries in clean energy, including hybrid systems, are supported financially. Although the financial flow in this area continues, the amount of financing transferred to the least developed countries remains below the desired level. Although there are financial flows in this area today, studies need to be done especially on the countries that are left behind. In this direction, among the future targets under the title of international financial flow are strengthening international connections and increasing the financial flow in general, especially in lagging countries. Although governments and various development finance institutions have announced support in line with the targets set today, the desired levels have not been reached yet, and studies on this issue need to be increased (The Energy Progress Report 2021 2021). Figure 9.1 summarises the targets of SDG-7.

Fig. 9.1
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Targets of SDG-7. (United Nations 2021a, b)

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With the targets set by the United Nations in 2015, sustainable development has been discussed in three dimensions. Holistic development is aimed at considering economic, social and environmental perspectives. In this study, plans were made by considering different countries’ development levels and national realities (Calzadilla and Mauger 2017). Efforts within the scope of SDG-7 are aimed at affordable, reliable, modern and sustainable energy for everyone (Sustainable Development Goal on Energy (SDG-7) and the World Bank Group 2016). One of the important steps to be taken in line with this purpose is to realise financial flow. Thanks to this financial flow that has been realised and will be realised, especially developing countries will be able to fulfil the 2030 targets set by the UN. With the studies in the field of renewable energy, important steps have been taken, especially in decentralised electricity generation. Studies have been carried out on the problem of not delivering electricity to underdeveloped regions with the contribution of renewable energy. While 1.2 billion people did not have access to electricity in 2010, this figure decreased to 759 million in 2019. Although this figure is desired to be reduced even more for 2030, the target set for 2030 is to reduce the number of people who cannot reach electricity to 660 million, with the effect of the pandemic in the world. Progress in achieving clean cooking conditions is as stable as it gets. By 2019, 2.6 billion people still do not have clean cooking facilities. The smoke produced during cooking still endangers the lives of many people. The target set for 2030 is to reduce this figure by 30%. To achieve this goal, radical steps must be taken (Sustainable Energy for All 2021a). Another target set is energy efficiency. The United Nations also carried out various studies to increase energy efficiency, starting with the motto of “the cleanest energy, is unconsumed energy.” In line with this target, efforts are underway to reduce primary energy intensity from 5.6 megajoules (MJ) per USD in 2010 to 3.4 by 2030. In 2018, this figure decreased to 4.75 MJ/USD, and studies in this direction continue (Sustainable Energy for All 2021b). When these targets are achieved by 2030, significant progress will be achieved in clean and affordable energy, although not enough. Although there are various regressions in the studies carried out, especially with the effects of the pandemic period, studies continue to reach these targets with the right targets to be set.

In addition to these targets set for 2030 by the United Nations, countries also have their plans for renewable energy and energy efficiency. For example, while the United States provides 21% of its electricity production from renewable sources in 2020, the target set for 2050 is to increase this figure to 42% (Dubin 2021). European countries are particularly ambitious in this regard. Sweden aims to eliminate fossil fuels in electricity generation by 2040 and is investing in this direction. Denmark, which met more than half of its energy from solar and wind in 2017, has set a fossil fuel-free future target for 2050. Germany aims to meet 65% of its electricity production from renewable sources in its 2030 target. Studies on this subject are not only carried out in Europe and America (Climate Council 2019). In addition, while China aims to produce 35% of its electricity from renewable sources in 2030, Chile has set a 70% renewable energy target for 2050. Indonesia, one of the Asian countries, aims to increase the share of renewable energy from 2% in the country to 23% by 2025, in line with its decisions (Siahaan 2014). Many countries have similar renewable energy future plans. By 2050, it is foreseen that 100% of the energy of 139 countries will be met by renewable energy (McKenna 2017).

Like the investments made in renewable energy, many countries are also working on energy efficiency, as it is the cheapest and cleanest means of energy source. Besides, with the advancements in energy efficiency, there is a decrease in carbon emission rates. Each country has its own goals and its own specific goals in its unions, such as the European Union. By 2030, the EU aims to achieve 32.5% progress in energy efficiency (Malinauskaite et al. 2020). For example, Germany is working to reduce its primary energy consumption by 50% compared to its consumption in 2008 as a target for 2050 (Federal Ministry for Economic Affairs and Energy 2021). Chile has carried out studies to support the renewable energy target it set in 2015 regarding energy efficiency and aims to significantly improve energy efficiency by 2050 by setting new standards (Siahaan 2014). The UK aims to reduce greenhouse gas emissions by 78% from 1990 levels by 2035 and zero emissions by 2050 (GOV.UK 2021). To achieve this goal, they turn to renewable energy sources and work on energy efficiency to reduce energy consumption. All these investments and studies carried out in these areas emerge as a result of certain financial planning and create many new job opportunities. In achieving these goals, it is important to manage the financial flow correctly.

The energy that is both affordable and clean guarantees that modern civilisation can function smoothly and productively. Industries have thrived, thanks to the existing energy system based on fossil fuels. However, it has led to severe climate change and exponential environmental deterioration. The private sector accounts for 23% of global electricity consumption, mostly met by damaging fossil fuels. Businesses may help speed up the transition to sustainable energy systems by investing in renewable energy technologies, research and development, focusing on energy efficiency and incorporating clean energy into their daily operations. They may go beyond their practices and invest in renewable energy sources for their communities, ensuring that their employees and customers have access to it and even providing renewable technology to developing countries (Bureau 2021).

Adaptation towards SDG-7 brings in new investments and creates a significant economy around it. While private investments and government spending in developed countries concentrate on achieving efficiency and renewable energy production, developing countries focus on obtaining access to electricity and clean energy sources. As an example, in 2020, the government of the United Kingdom introduced a £350 million package for the transition from fossil fuels to environment-friendly sources (“PM commits £350 million to fuel green recovery,” 2020). Additionally, the United States and Germany raised funding equal to US$7 billion and US$45 billion, respectively, and South Korea declared a 5-year package of US$63 billion to increase the portion of clean energy (Beyer and Vandermosten 2021). Furthermore, international financial flow to developing countries rose to US$14 billion in 2018 from US$10.1 billion in 2010 (IRENA 2021a). However, African countries struggle to find private investment, and governments’ spending on energy is not strong enough to achieve the goals. According to recent surveys, very few nations in Sub-Saharan Africa spend higher than 4% of their GDP on infrastructure, which prevents access to electricity and clean energy sources by all (Baumli and Jamasb 2020).

Moreover, the energy sector presents many employment opportunities. Global renewable energy employment is expected to reach 11.5 million in 2019 from 11 million in 2018. Although a few countries dominate the market, for instance, the top 10 biofuel producer countries account for 90% of the present jobs, the profitability of new technologies expands the current network to a wider range of countries (IRENA 2020). From 2015 to 2019, the energy efficiency sector has created more than 400,000 new jobs solely in the United States. It grew at a rate of 20%, roughly three times faster than the whole US economy (NASEO and EFI 2020). Furthermore, expansion of the renewable energy sector has a beneficial impact on jobs, as more positions are being provided in the power, agriculture and construction industries. Even though it is causing job losses in the fossil fuel distribution industry and in high energy-demanding businesses as rising energy prices reduce their profitability, the effect of the expansion in the renewable energy sector to employment is still positive in different scenarios. In 2050, 1.3% of EU employment is expected to be redistributed among several sectors with the low-carbon transition in the EU (Fragkos and Paroussos 2018).

9.1 Companies and Use Cases

Table 9.1 presents the business models of 60 companies and use cases that employ emerging technologies and create value in SDG-7. We should highlight that one use case can be related to more than one SDG and it can make use of multiple emerging technologies. In the left column, we present the company name, the origin country, related SDGs and emerging technologies that are included. The companies and use cases are listed alphabetically.Footnote 1

Table 9.1 Companies and use cases in SDG-7
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