Abstract

This article presents some difficulties encountered by rural electrification programmes in developing countries: rising costs of connection in sparsely populated areas, financial drain to electric utilities, uncertainties concerning the economic impact of electrification, etc. Given the economic characteristics of grid extension, it underscores the importance of technical innovation toward less capital intensive solutions in order to accelerate the pace of electrification and avoid marginalization. Lastly, it raises the issue of an appropriate solidarity mechanism between urban and rural residents which would not disadvantage local solutions, as price equalization does.

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