OPEC defends role of oil in closing global electricity access gap

The Organization of the Petroleum Exporting Countries (OPEC) has called for a more pragmatic approach to achieving universal access to electricity, arguing that oil and other hydrocarbons should not be excluded from efforts to meet the United Nations’ 2030 energy access goal.

According to the UN, more than 666 million people worldwide still lack access to electricity — a population size that would rank as the world’s third largest country. With just four years remaining to meet Sustainable Development Goal 7 (SDG 7), OPEC says current policy frameworks underestimate the scale of the challenge and rely too narrowly on renewable technologies, Caliber.Az reports per OPEC statement. 

"Never, in human history, have a group as large as 666 million people achieved access to electricity in a four-year time frame by generating electricity through a restricted number of energy sources,"  OPEC said in a statement.

OPEC noted that official SDG 7 progress reports largely frame solutions in terms of solar and wind power, grid expansion, energy storage, and financing mechanisms, while treating hydrocarbons primarily as fuels to be phased out. This, the organisation argues, creates a contradiction between the goal of universal electricity access and the restriction of certain generation technologies.

"Furthermore, there is no historical example of hundreds of millions of people gaining access to electricity without hydrocarbons. Large jumps in access have always come through a mix of fuels and technologies," OPEC said. 

Although oil currently accounts for only around 3% of global electricity generation, OPEC emphasised that its contribution can be significant in specific contexts, particularly in regions where renewable deployment or grid expansion is impractical in the short term.

One such case is remote and rural communities, where the majority of people without electricity live. Around 84% of those lacking access are in rural areas, often in low-income regions with limited infrastructure and fragile security conditions.

OPEC also highlighted the relatively low upfront costs and rapid deployment of diesel generation compared with alternatives such as community-scale solar mini-grids, which can require significant financing. Given that climate finance commitments from developed countries have fallen short of developing nations’ needs, the organization said short-term “bridge solutions” may be unavoidable.

A third area where oil remains indispensable, according to OPEC, is emergency and backup power generation. Diesel generators are widely used to support critical infrastructure, including hospitals, airports, data centers, and emergency response facilities.

"Diesel generators are known as the ‘default workhorse’ backup generators for critical infrastructure, airports, emergency operation centres, defense facilities, data centres, hospitals and much more," OPEC said, citing their reliability, ability to operate in harsh conditions, and rapid start-up times.

Surveys indicate that about 85% of backup generators in commercial buildings and critical facilities in the United States run on diesel, with the global share estimated at more than 60%.

As an example, OPEC pointed to Vienna’s largest hospital, the Allgemeine Krankenhaus, where diesel-powered emergency generators can take over the facility’s power supply within 15 seconds of a grid failure, maintaining operations for up to 48 hours or longer with load management.

Looking ahead, OPEC warned that global electricity demand is projected to rise by around 85% by 2050, reinforcing the need for a broad-based energy strategy. Oil accounted for roughly 10% of global electricity generation in the 1990s, and OPEC argues that technological advances could improve its environmental performance in the future.

As the 2030 SDG 7 deadline approaches, OPEC urged policymakers to adopt a more inclusive view of energy solutions, stressing that achieving universal access should take precedence over fuel-specific exclusions.

By Sabina Mammadli