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Energy poverty is a complex challenge, particularly in developing countries. Energy access is a prerequisite for economic development, and its absence perpetuates economic, health, and environmental disparities. The United Nations created SDG 7: “Ensure access to affordable, reliable, sustainable and modern energy,” to guide efforts toward achieving universal energy access. This article assesses the channels through which microfinance impacts SDG 7, identifying three main channels: funding and infrastructure, financial services, and microenterprise development. Each impact channel is supported by case studies of institutions that have utilised microfinance platforms to achieve energy development goals.

Microfinance and SDG 7: financial impact channels for mitigating energy poverty