Effective solutions for rural electrification in developing countries: Lessons from successful programs

Abstract

Countries embarking on providing electricity to their poorest populations face significant challenges. One is deciding how to create or modify existing institutions and policies to support rural electrification initiatives. Existing electricity companies often have a tradition of serving mostly urban populations and thus may be reluctant to support rural electrification programs. Scaling up electricity access in rural areas may require creating independent institutions or setting up special programs within electricity companies. Complementary solutions, involving both grid and offgrid approaches, may be needed. Grid extension should be pursued as a least-cost option in more densely populated and economically advanced areas, where power demand and load densities are high [ 1• ]. Where grid extension is not least-cost or reaching remote communities through grid network expansion is economically impractical, offgrid technologies and business models involving renewable energy or even small diesel systems should be adopted to provide basic levels of electricity service.