Credits: AI generated

This submission has been posted as part of a blog series that seeks to profile the newly created NNHRR Working Group on Economic, Social, and Cultural Rights blog series, its vision and plans, and to highlight the expertise of its members, showcasing their research and/or contributions to ESCR.

By: Laura Kaschny and Leonie Reins

Energy powers our lives – it lights our homes, fuels our industries, and keeps us connected. Yet, as the world races toward a sustainable future, one question looms large: can we make energy affordable for everyone? This issue transcends borders, weaving through legal systems, economic realities, and human rights debates. In the European Union (EU) and on the global stage, through frameworks like the United Nations’ Sustainable Development Goal 7 (SDG 7), progress has been made, but affordability remains a slippery route. Why is it so hard to pin down? And what can be done about it? The following dives into the complexities of energy affordability, exploring the EU’s evolving approach, the global perspective of SDG 7, and the challenges that tie them together. At the heart of this discussion lies a pressing question: should access to affordable energy be recognised not only as an economic issue but as a fundamental human right essential to dignity, health, and equality?

The EU’s Energy Puzzle: Affordability Meets Transition

In the EU, energy affordability has long been a growing concerns. Historically, energy prices in the EU have always been higher than in other industrialised regions. With the additional financial pressures of the energy transition, affordability is now becoming an increasingly pressing economic and social issue. The EU has tried to tackle this concern through its market regulation. The liberalisation of the EU energy sector, starting with unbundling monopolies in the early 1990s, aimed to do just that – offer consumers better prices and more choices. Already, the now repealed Electricity and Gas Directives of 2009/72/EC and 2009/73/EC required Member States to protect vulnerable consumers, such as prohibiting their disconnection from the electricity supply at critical times. But these early efforts were vague and introductory, leaving much unaddressed.

Fast forward to 2019, and the Clean Energy for All Europeans Package sharpened the focus. It put a new emphasis on consumers, including those living energy poverty. Member States were tasked with defining who qualifies as ‘vulnerable customers’ as an incentive to start tackling energy poverty more proactively – a shift driven by a stark reality: currently, more and more households are struggling to keeping the lights on. The European Commission followed up with Recommendations in 2020 and 2023, urging Member States to act decisively while keeping market signals intact. In this context, energy poverty is not just about low income – it includes aspect such as age, health, gender, and even transportation needs. This broader lens was a step forward, recognising that affordability is a multifaceted and complex concern.

Yet, progress has been uneven. Some Member States have stepped up with clear definitions and policies; most lagged. By 2023, the revised EU Energy Efficiency Directive tried to accelerate the adoption of energy poverty measure by offering a minimum threshold definition for energy poverty at an EU level. However, this definition narrowed the focus primarily back to income – a retreat from the more holistic view of the European Commission. Meanwhile, the recently published Clean Industry Deal and its Action Plan for Affordable Energy arguably mark a new chapter. These initiatives progressively confront the elephant in the room: the energy transition – shifting to renewables like wind and solar – comes with substantial financial burdens to energy consumers. Grid upgrades, storage solutions, and retrofitting buildings require financial investments that are ultimately shouldered by the present generation of consumers.

These policy frameworks, arguably for the first time, address the overall financial pressures of the transition – beyond energy poverty. While EU energy regulation largely relies upon more affluent households to actively contribute to the energy transition by acting on market signals and adopt green technologies such as solar panels, heat pumps and electric vehicles, the Commission recognises that affordability of energy services more generally is threatened by volatile markets, rising network charges, and outdated tax systems. Yet, although the general problem is being recognised, this policy framework does not define more positively what ‘affordable energy’ encompasses, missing out on establishing a benchmark against which financial pressures can be evaluated.

SDG 7: A Global Dream with Real-World Hurdles

Zoom out to the global stage, and SDG 7 – ‘ensure access to affordable, reliable, sustainable, and modern energy for all’ by 2030 – sets an ambitious goal. It is pushing for a low-carbon future. But unlike a binding treaty, SDG 7 is aspirational, a compass rather than a rulebook. It lists targets, such as universal electricity access, tracks progress, but it largely remains unbinding. Take SDG 7.1.1 on the proportion of population with access to electricity: about 685 million people, mostly in sub-Saharan Africa and South Asia, still lack electricity. Even where power flows, it is often unreliable or unaffordable, and fossil fuels still dominate. Achieving this target means more than rolling out infrastructure – it is about cleaner production, better distribution, and respecting vulnerable communities.

International law does not offer much guidance. Energy law is still a relative newcomer to the global scene, historically left to national sovereignty. There is no standalone ‘right to energy’ recognised in international treaties or customs. It is still largely indirectly addressed through rights to health, housing, or education. This patchwork approach splits SDG 7 across domains: human rights for access, climate law for decarbonisation, trade law for efficiency, and investment law for infrastructure. A web of UN agencies, such as the International Energy Agency, have tried to weave this scattered framework together, but their efforts often clash or overlap. The result? A disjointed push where global coordination shines, but local action stumbles.

SDG 7’s vagueness is part of the problem. It leaved underdefined what ‘modern energy’ or ‘clean technology’ encompass. The International Energy Agency offers some clarity, but the terms shift depending on who is interpreting them. Plus, the framework sidesteps thorny issues like energy security or geopolitics, which are key drivers of cost and reliability. And with 17 SDGs competing for attention, trade-offs arise. Advancing energy access might potentially strain climate goals, or vice versa. Without a clearer hierarchy, progress varies notably across regions.

The Big Challenges: Defining Affordability

What ties the EU and SDG 7 together? Three big hurdles in defining and delivering affordable energy.

1. No Clear Right to Energy: In the EU, energy is arguably a ‘service of general economic interest’, recognised under the Charter of Fundamental Rights. Globally, it is a shadow right, tied to well-being but not explicitly enough. Without a firm legal anchor, energy remains largely a market commodity, not a universal entitlement. A human-rights-based ‘right to energy’ could spark stronger national policies, especially for the vulnerable, but it is a leap neither the EU nor international law has taken yet.

2. Affordability Beyond Poverty: While leaving substantial room for improvement, the concept of energy poverty appear to be easier to tackle than ‘affordability’ on a societal level. The EU aims to protect the poorest but often leaves middle-income families exposed to rising transition costs. Globally, SDG 7 aims for ‘affordable’ energy, but what does on a global scale? Terms like ‘reasonable prices’ float around, but without clear definitions, policies flounder. As transition costs mount, this gap widens, asking for guidance on clarity and distribution factors.

3. Regional Realities: Energy costs hinge on infrastructure, energy mixes, and market particularities. In the EU, these differences challenge uniform policies. Globally, they are magnified. The ‘common but differentiated responsibilities’ principle, often used in climate discussion, could help, tailoring obligations to each region’s capacity. But without structure, it risks fragmentation, leaving needs unmet.

Where Do We Go From Here?

Energy affordability is a puzzle with no easy solution. The EU has made strides towards protecting the vulnerable, incentivising consumer behaviour toward sustainability, but it is often reactive, rather than visionary. SDG 7 inspires but lacks teeth. Both wrestle with the same truth: affordability is more than cheap electricity bills. It is about ensuring a decent standard of living amid a paradigm shift to green energy.

An important step forward would be embedding a right to energy in human-rights law, forcing nations to prioritise access for all, especially the poorest. Short of that, we need smarter collaboration for strategic efficiency and fair cost-sharing, with tailored, regional strategies as key, balancing local realities with global goals.

As the energy transition accelerates, affordability will determine its success. The EU’s increasing energy costs and SDG 7’s 759 million unlit homes remind us: this isn’t just about watts and volts – it is about people. A future where energy is sustainable and affordable may be possible, but for that we need to start the discussion on what ‘affordability’ actually means.

This Blog Post is based on L Kaschny and L Reins, ‘Energy - Affordability of the Energy Transition in the European Union and at the International level’ in J. Odermatt and R.A. Wessel (eds), Research Handbook on EU Law and Global Challenges (forthcoming)

Bio:

Laura Kaschny is a post-doctoral researcher at the Erasmus School of Law, Erasmus University Rotterdam, in the Netherlands. Her work is integrated into the V2G-Quests research project and the Dynamics of Inclusive Prosperity initiative. Laura conducted her Ph.D. at TILT and TILEC, Tilburg University, where she contributed to the New Energy and Mobility Outlook for the Netherlands (Neon) research project. Additionally, she has been named a Future Energy Leader by the World Energy Council the Netherlands. Her research explores the alignment of energy regulation with energy justice, focusing on the interactions between the EU, national governments, national regulatory authorities, and market dynamics.

Leonie Reins is Professor of Public Law and Sustainability at Erasmus School of Law. Prior to joining ESL she worked as an Assistant Professor at the Tilburg Institute for Law, Technology and Society (TILT) at Tilburg University. She obtained her FWO-financed PhD on "the coherent regulation on energy and environment - using shale gas as a case study" from KU Leuven, where she subsequently also worked as a Post-Doctoral Researcher. In addition, Leonie worked as Legal Advisor at a Brussels-based environmental law and policy consultancy, where she was involved in projects on environmental, energy and climate change law and policy. Leonie holds and LL.M. in International, European and Comparative Energy and Environmental Law.