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The Energy Development Index

What is it?

The IEA has devised an Energy Development Index (EDI) in order to better understand the role that energy plays in human  development. It is an indicator that tracks progress in a country’s or region’s  transition to the use of modern fuels. Helping to measure energy poverty, the  EDI provides a rigorous analytical basis for policy-making.

The World Energy Outlook will update and publish the Energy Development Index on an annual  basis in  the hope to raise the international community’s awareness of energy poverty issues and to assist countries to monitor their progress towards modern energy access.

How is it calculated?

The EDI is calculated in such a way as to mirror the UNDP’s Human Development Index and is composed of four indicators, each of which captures a specific aspect of potential energy poverty1:     

  • Per capita commercial energy consumption: which serves as an indicator of the overall economic development of a country         
  • Per capita electricity consumption in the residential sector: which serves as an indicator of the reliability of, and consumer’s ability to pay for, electricity services
  • Share of modern fuels in total residential sector energy use: which serves as an indicator of the level of access to clean cooking facilities
  • Share of population with access to electricity

A separate index is created for each indicator, using the actual maximum and minimum values for the developing countries covered. Performance in each indicator is expressed as a value between 0 and 1, calculated using the formula below, and the EDI is then calculated as the arithmetic mean of the four values for each country.

Indicator
=
actual value - minimum value
maximum value - minimum value

The 2011 EDI

Using 2009 data for the four energy development indicators discussed above, we have calculated the 2011 EDI (Figure 1). The minimum and maximum values used in the calculation of the 2011 EDI are shown in Table 1 below.

Download here the 2011 EDI values and component by country.

 Figure 1
2011 Energy Development Index
2011 Energy Development Index

Source: WEO-2011

Table 1
The minimum and maximum values used in the calculation of 2011 Energy Development Index
 
Indicator
Minimum value (country)
Maximum value (country)

Per Capita commerical energy consumption (toe)
0.03
2.88
Per Capita electricity consumption in the residential sector (toe)
0.001
(Haiti)
0.08
(Venezuela)
Share of modern fuels in total residential sector energy use (%)
1.4
(Ethiopia)
100
(Yemen, Lebanon, Syria, Iran)
Share of population with access to electricity (%)
11.1
(Dem. Rep. of Congo)
100
(Jordan, Lebanon)
____________________________________

1 The choice of indicators is constrained by the type of data related to energy poverty that is currently available. For example, the per-capita commercial energy consumption figure is one indicator of overall economic development of a country but for reasons of data deficiency it fails to take account of biomass resources, including wood, charcoal and biofuels, which are used for productive activities in developing countries. Biomass data is seldom disaggregated in a sufficient manner to capture this reality. With the introduction of low-emission, high-efficiency stoves, biomass consumption will decline in many countries. Yet the EDI cannot adequately compensate for the fact that this decline will be slower than in those countries where households switch to liquid fuels for cooking, even though the impact on energy poverty could be similar. The countries included in the EDI are those for which IEA collects energy data.