Why sustainable energy is a major opportunity in fragile and conflict-affected settings

In fragile and conflict-affected settings, efforts to introduce sustainable energy are often deprioritized in the face of more immediate needs like emergency response, protection of civilians or food security. Yet these are precisely the places where clean, reliable and affordable energy can have the most transformative impact: powering essential services such as health clinics, supporting vulnerable populations and livelihoods, and reducing dependence on volatile fuel supplies.

These settings are often characterized by weak governance, political instability and economic volatility. Institutions are overstretched or dysfunctional, infrastructure is degraded, and access to basic services, including energy, can be severely limited. Conditions in these settings vary widely, from active conflict and displacement to protracted humanitarian crises to post-conflict fragility.

Today, half of the world’s extreme poor live in fragile states, a figure expected to reach nearly 60 percent by 2030. By then, up to 2.2 billion people – more than a quarter of the global population – may live in fragile or conflict-affected settings.

The global push for energy transition, especially its emphasis on decarbonization, often feels out of reach in these contexts, where governments are focused on survival and operate with limited institutional and fiduciary capacity. Even when financing is available, it’s often fragmented or tied to conditions too difficult to meet. The result is a cycle where energy poverty undermines service delivery, economic recovery and peacebuilding.

To break this cycle, energy must be seen not as a post-crisis luxury, but as a foundation for resilience. Expanding sustainable energy supports stability while enabling broader decarbonization, powering local industries, transport and public services. The shift from basic access to a full energy transition shouldn’t be sequential. It must happen in parallel, even in fragile settings.

Despite the risks, investing in sustainable energy in these contexts is a strategic imperative. Sustainable energy systems are generally more resilient and adaptable and, when distributed, especially well-suited to fragile contexts. When tailored to local realities, they can rapidly expand access, reduce costs and build institutional capacity, laying the foundation for peace and recovery.

Some fragile states are already proving this is possible. Sustainable energy is delivering results in even the most complex environments: providing lifelines to vulnerable communities, enabling long-term transitions and acting as a lever for systemic transformation.

UNDP is working with governments, communities and partners to turn sustainable energy and decarbonization into practical tools for resilience, recovery, and systemic transformation. Examples from Ukraine, Yemen, Bosnia and Herzegovina and Afghanistan illustrate this potential in action.

Increasing energy security and building back better in Ukraine

In Ukraine, the ongoing war has severely damaged energy and urban infrastructure, placing public utilities like water supply and sewer services under immense strain. Even before the conflict, tariff regulations capped user fees below the actual cost of delivering these services. This left utilities unable to cover operating expenses or invest in new infrastructure, a situation made worse by wartime damage and rising demand for emergency services. In this context, private firms were hesitant to invest due to utilities’ lack of capital and credit history.

To address this, UNDP, with funding from the Global Environment Facility (GEF), introduced an energy service model where private companies finance, design, install and maintain solar power systems on public facilities. This model eliminates upfront costs for municipalities, as they only have to pay for verified energy performance over time. At the same time, solar generation offsets conventional power use, saving money for utilities.

Applied across four water utilities, six hospitals and two kindergartens, the model saves communities over US$382,500 in energy costs annually, while strengthening energy security, empowering the private sector and contributing to resilient recovery.

Reducing dependence on volatile fossil fuel markets in Yemen

Many fragile states rely heavily on imported fossil fuels to meet their energy needs, leaving them exposed to global price shocks, supply chain disruptions and geopolitical volatility. In conflict-affected countries, this dependence becomes even more precarious as infrastructure is damaged and supply routes are insecure. Yemen, for instance, imports over 90 percent of its fuel, with the ongoing conflict repeatedly disrupting fuel imports and distribution. This has resulted in fuel shortages, skyrocketing prices and widespread power outages that threaten essential services like healthcare, education, water provision and food supply chains.

In response, with funding from the Kuwait Fund for Arab Economic Development, UNDP has helped deploy solar energy systems in critical facilities, including hospitals and schools, across the country. These installations have been critical in ensuring uninterrupted power for lifesaving services, including emergency surgeries, vaccine refrigeration and maternal care, especially in remote and underserved areas. Beyond meeting immediate urgent needs, this energy transition has reduced the dependence on costly and vulnerable fuel convoys, which were frequently targeted in insecure areas, improving safety, lowering operational costs and laying groundwork for long-term energy resilience.