bp, Equinor, Shell & TotalEnergies' Energy Access Project
Four of the world’s largest energy companies — bp, Equinor, Shell, and TotalEnergies — have announced a US$500m joint commitment aimed at expanding access to sustainable and reliable energy in under-served regions.
The initiative, first unveiled on 15 November 2024, aligns with SDG 7 from the United Nations' list of Sustainable Development Goals. It highlights the pressing need for collective action in bridging the energy access gap, an issue which energy providers have a huge responsibility to solve.
The joint effort between these four companies will focus on addressing some of the most critical energy challenges in Sub-Saharan Africa, South Asia and Southeast Asia.
Right now, the energy sector is grappling with the demands of decarbonisation, as well as the need to meet growing energy requirements in emerging markets. These are two challenges of gigantic proportions, only exacerbated by global economic pressures and volatile energy prices.
Bridging the yawning chasm in energy access
According to the International Renewable Energy Agency’s 2024 report, 685 million people still lack access to electricity, marking a troubling increase of 10 million since 2022.
What's more, around 2.1 billion people, mainly in lower-income countries, do not have access to ways of cooking food cleanly. Put simply, this is a crisis with profound health and social implications, particularly for women and girls.
“Progress towards universal energy access has stalled,” says bp CEO, Murray Auchincloss.
“It is early days, but we hope that by jointly investing, we will be able to contribute to wider efforts to tackle the very real challenge of access to energy. Over time, we believe it can help to create a more inclusive energy future for some of the many millions of people who lack that access today.”
How to solve this problem, once and for all
The investment will be managed by a global private equity firm renowned for its impact-oriented projects. Funds will be channelled into technologies such as solar home systems, mini-grids, clean cooking solutions and energy storage systems.
The overarching aim is to improve living conditions while generating sustainable financial returns and addressing systemic barriers in underserved markets.
In a statement following the partnership's announcement, Equinor CEO Anders Opedal framed the partnership as a strategic step in accelerating the energy transition.
“This joint investment brings together four leading energy companies investing in emerging countries," he said.
"We believe this effort will help close some of the energy access gaps, which is a key part in reaching the global ambition of a just and equitable energy transition.”
The benefits of collaboration
The venture is expected to deliver more than just electricity and clean cooking facilities.
Enhanced energy access can create local employment opportunities, reduce health risks associated with traditional cooking methods and promote broader social development.
For TotalEnergies, these goals are not new. Patrick Pouyanné, the company’s Chairman and CEO, points to the company's ongoing investments.
“Around a third of our development in electricity in the coming years will be in emerging countries, which will enable about 40 million people to benefit from access to electricity," he explains.
"Furthermore, we are committed to investing US$400m in liquefied petroleum gas facilities to develop clean cooking solutions in Africa and India, which will help 100 million people access healthier, more sustainable and more reliable energy.”
Increasing access to energy to decarbonise the planet
With pressure mounting on energy providers to decarbonise, companies like the ones involved here are exploring avenues that combine sustainable growth with social impact.
Partnerships such as this seem to be designed to address the immediate needs of people, but also to align with more long-term climate goals, which include fostering an equitable energy transition.
Moreover, delivering access to permanent energy sources will mean that energy usage can be far more efficient. There is also hope that the energy sources provided by this project will be less carbon intensive than the extant ones.
For Shell CEO Wael Sawan, the human dimension of this new partnership appears particularly important.
“We want to support progress towards universal energy access as we believe it has the power to transform lives," he says.
"This joint investment will help to do that. By working collectively to overcome key energy access challenges, we can achieve sustained impact and drive real change.”
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