Rural Electrification : Lessons Learned

Abstract

The note focuses on the external
\n benefits of rural electrification (RE), i.e., improved
\n access to communication, education, and economic
\n opportunities, in addition to extended health services. It
\n outlines key lessons to scaling up RE, namely macroeconomic
\n stability, continued government commitments, and
\n institutional capacity. However, it also suggests that grid
\n extension is not always cost-effective, rather,
\n decentralized delivery options, and alternative energy
\n sources, such as solar photovoltaic, mini-hydro, and other
\n renewable energy sources should be considered. Moreover,
\n good practices indicate the need for power sector reform,
\n regulatory framework with legal guarantees that utilities
\n can operate autonomously, and, financial viability, that is,
\n to ensure commercialization, and identify a cost-recovery
\n system that takes into account capital investment costs, and
\n contributions levels. Strongly emphasized is the involvement
\n of local communities in the design, and implementation of
\n RE, by setting rural electrification committees, and by
\n establishing institutional, and organizational procedures
\n for project planning.