

Electrification is a key enabler of decarbonization, but the role of urban areas as an accelerator of these processes is only just emerging. Urban electrification can be understood as a sustainable way to reduce poverty by providing over a billion people with modern types of energy, but also as a way to substitute clean energy for existing services that drive climate change and harmful local pollution. Commercial actors such as utilities and investors are increasingly seeing electrification as markets for growth. The current transitions are an opportunity for increased self-sufficiency, decreasing inequalities, and better conditions for small- and medium-sized enterprises. They require a rethinking of energy systems, design thinking, and democratized decision-making.
Electrification is a key enabler of decarbonization, but the role of urban areas as an accelerator of these processes is only just emerging. Urban electrification can be understood as a sustainable way to reduce poverty by providing over a billion people with modern types of energy, but also as a way to substitute clean energy for existing services that drive climate change and harmful local pollution. Commercial actors such as utilities and investors are increasingly seeing electrification as markets for growth. The current transitions are an opportunity for increased self-sufficiency, decreasing inequalities, and better conditions for small- and medium-sized enterprises. They require a rethinking of energy systems, design thinking, and democratized decision-making.

- Urban electrification is a powerful pathway to an equitable energy transition.
- Over a billion people who currently lack access to electricity will benefit from stronger electrification efforts.
- Reductions in local air pollution and improvements to health and quality of life are tangible co-benefits of urban electrification.
- An actor-oriented, equity-based approach to the transition will maximize the benefits and mitigate the risks of urban electrification, such as generating a new electrical divide.
- Key aspects for a successful transition include considering the constraints of the built environment, equity, governance, and how electricity-powered technologies interact with building design, urban, and mobility planning, and people’s use of urban space.

- Urban electrification is a powerful pathway to an equitable energy transition.
- Over a billion people who currently lack access to electricity will benefit from stronger electrification efforts.
- Reductions in local air pollution and improvements to health and quality of life are tangible co-benefits of urban electrification.
- An actor-oriented, equity-based approach to the transition will maximize the benefits and mitigate the risks of urban electrification, such as generating a new electrical divide.
- Key aspects for a successful transition include considering the constraints of the built environment, equity, governance, and how electricity-powered technologies interact with building design, urban, and mobility planning, and people’s use of urban space.
Currently, urban electrification is driven by urban buildings and on-road transportation, especially battery electric vehicles, heat pumps, and cookstoves. Utilities and investors see these changes as new sources of growth, as can be seen from the global trends in investment in electricity networks. Rates of decline in carbon intensity are forecast to be faster in cities and with municipally-owned utilities due to their renewable targets, unique regulatory structures, and prominent roles in regional, state, and national economies.
Urban electrification’s full potential lies in fundamentally rethinking electricity provisions from a systems perspective that recognizes the multifaceted value proposition of decentralized energy systems, disrupting powerful centralized high-carbon electricity systems. Urban electrification entails risks because there are significant inequalities of access to decision-making on investments and technologies. Unmitigated, it could deepen the divide between those who benefit and can afford low-carbon systems and those who do not, or who bear the negative impacts. An equity, justiceoriented approach that involves a diverse stakeholder base through the transition is essential to ensure fair innovation processes and that electrification projects do not have unintended negative impacts on vulnerable populations. Leveraging the benefit of urban electrification involves considering the constraints of governance, the built environment, how electricity-powered technologies interact with building design, urban, and mobility planning, and people’s use of urban space.
Currently, urban electrification is driven by urban buildings and on-road transportation, especially battery electric vehicles, heat pumps, and cookstoves. Utilities and investors see these changes as new sources of growth, as can be seen from the global trends in investment in electricity networks. Rates of decline in carbon intensity are forecast to be faster in cities and with municipally-owned utilities due to their renewable targets, unique regulatory structures, and prominent roles in regional, state, and national economies.
Urban electrification’s full potential lies in fundamentally rethinking electricity provisions from a systems perspective that recognizes the multifaceted value proposition of decentralized energy systems, disrupting powerful centralized high-carbon electricity systems. Urban electrification entails risks because there are significant inequalities of access to decision-making on investments and technologies. Unmitigated, it could deepen the divide between those who benefit and can afford low-carbon systems and those who do not, or who bear the negative impacts. An equity, justiceoriented approach that involves a diverse stakeholder base through the transition is essential to ensure fair innovation processes and that electrification projects do not have unintended negative impacts on vulnerable populations. Leveraging the benefit of urban electrification involves considering the constraints of governance, the built environment, how electricity-powered technologies interact with building design, urban, and mobility planning, and people’s use of urban space.

