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BENERGY Module 2: Lesson 3

What is Energy Poverty

Part 1: Energy Poverty – Key Characteristics 

Think

Imagine that you had limited access to affordable and reliable energy. What are the most basic things in your home you would have to live without?  

Write

In your notebook, in just a few words, jot down: 

  • What your life and the life of your family would be like living without AC and/or home heating? 
  • Living in your home without access to clean running water.
  • Living without access to consistent food refrigeration.
  • Cooking without a stove or oven.

Energy Poverty Defined

Energy poverty is the lack of access to affordable, reliable, and sustainable energy services, encompassing inadequate heating, cooling, lighting, and electricity to power essential appliances. It affects households unable to afford energy costs, such as those spending a disproportionately large share of their income on utilities. The issue leads to negative impacts on health and wellbeing, hindering economic development and education by forcing people to use dirtier, less safe energy sources like biomass, which cause indoor air pollution and shorten productive workdays.  

Energy poverty is the lack of access to affordable, reliable, and sustainable energy services, encompassing inadequate heating, cooling, lighting, and electricity to power essential appliances. It affects households unable to afford energy costs, such as those spending a disproportionately large share of their income on utilities. The issue leads to negative impacts on health and wellbeing, hindering economic development and education by forcing people to use dirtier, less safe energy sources like biomass, which cause indoor air pollution and shorten productive workdays.

  • Jobs are lost or shipped out to nations that can supply energy more inexpensively to its industrial base 
  • Industrial production diminishes 
  • Transportation of goods to and from factories diminishes (because fewer things are made in that nation) 
  • Jobs are lost or shipped out to nations that can supply energy more inexpensively to its industrial base 
  • Industrial production drops and is taken by nations that can supply power more inexpensively to industry 
  • Every part of the U.S. economy—from factories to food prices—depends on cheap energy. 
  • Countries with affordable, reliable energy have competitive manufacturing and strong exports
  • The U.S. economy thrives when energy prices are stable and low—fueling innovation and jobs. 

Key Characteristics

  • Lack of Access: Inability to access essential modern energy services.  
  • Affordability: Inability to afford these services, leading to high energy expenditures.  
  • Reliability & Sustainability: Reliance on unreliable or unsustainable energy sources, such as biomass fuels, for cooking, heating, and lighting.  

Consequences of Energy Poverty 

  • Lack of Access: Inability to access essential modern energy services.  
  • Affordability: Inability to afford these services, leading to high energy expenditures.  
  • Reliability & Sustainability: Reliance on unreliable or unsustainable energy sources, such as biomass fuels, for cooking, heating, and lighting.  

Root Cause

  • High Energy Prices: Increased costs for energy services.  
  • Low Income: Households struggling to pay high energy bills.  
  • Inefficient Buildings & Appliances: Poorly insulated homes and inefficient appliances increase energy demand.  
  • Lack of Infrastructure: In some regions, insufficient power grids prevent access to electricity. 

Did You Know

  • The average U.S. household spends ~6–7% of income on energy (EIA).* 
  • Low-income households may spend 15–30% of income on energy.* 
  • When energy prices spike, inflation rises (gas, food, shipping). 
  • Affordable, reliable energy = lower cost of living, stronger economy. 

* These facts are based on Net Income, not Gross Income. What’s the difference? Your employer pays you $500 – That’s gross income. THEN, taxes, social security, etc are removed from your $500 leaving you with only about 75% of the total – That’s net income. The government gets $125, you only get to keep and spend $375 on energy and everything else.  

Part 2: Poverty is Energy Poverty

Pre-view Questions – Use these questions to activate your curiosity and gauge your baseline understanding

Part 2: Questions Before You Watch

1 / 4

Why is energy considered essential to modern life?

2 / 4

What does the term "energy poverty" most likely mean?

3 / 4

Which of the following might be a consequence of energy poverty?

4 / 4

What do you think connects electricity to clean water and health?

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Post-Viewing Questions – Use these questions to assess your understanding of the video’s key points and  to help reinforce your understanding of the main messages. 

Part 2: Questions After You Watch

1 / 6

According to the video how many people worldwide have no access to electricity?

2 / 6

What is the connection between electricity and life expectancy mentioned in the video?

3 / 6

What visible difference can be seen between North and South Korea at night?

4 / 6

Why does the speaker say fossil fuels are the only answer for many developing regions?

5 / 6

What does the video suggest about off-grid renewable systems in Africa?

6 / 6

According to the speaker how did access to electricity transform the United States?

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 COURSE NAVIGATION

  Module 1: Why Energy Matters
Lesson (1) (2) (3) (4) (5) (Test)

  Module 2: Why Affordable Energy Matters
Lesson (1) (2) (3) (4) (5) (Test)

  Module 3: Why Reliable Energy Matters
Lesson (1) (2) (3) (Test)

  Module 4: Why Clean Energy Matters
Lesson (1) (2) (3) (4) (Test)

  Module 5: Be a BENbassador
Lesson (1) (2) (3) (4) (Test)