``Lack of electricity and heavy reliance on traditional biomass are hallmarks of poverty in developing countries. Lack of electricity exacerbates poverty and contributes to its perpetuation, as it precludes most industrial activities and the jobs they create,`` the report said.
Four out of five people without electricity live in rural areas of the developing world, mainly in South Asia and sub-Saharan Africa, the report
said.
According to the report, 1.4 billion people will still lack electricity in 2030 unless there are vigorous new policies to alleviate the lack.
The report said there is need for investment to focus on various energy sources, including biomass, for thermal and mechanical applications to bring productive, income-generating activities to developing countries.
The IEA report is expected to have an impact on the issue of renewable energy sources, which is one of the most contentious points for the World
Summit on Sustainable Development, which runs through next Wednesday.
``Renewable energy technologies such as solar, wind and biomass may be cost-effective options for specific off-grid applications, while
conventional fuels and established technologies are likely to be preferred for on-grid capacity expansion,`` it said. Grid refers to electrical supply.