Rural electrification policy and institutional linkages

Abstract

Some of the problems that have besieged rural electrification in most developing countries include inadequate policies, weak institutional frameworks and limited financing. In the last two decades, governments in developing countries have been making various efforts both at the policy level and in financing to facilitate increased levels of rural electrification. However, the introduction of market-based reforms in the power sector in the last decade has affected the institutional and financing arrangements for rural electrification. The reforms have also affected the rate of electrification and affordability of electricity. There is need therefore to establish the extent to which the reforms have affected access and affordability of electricity in rural areas and to develop appropriate policy and the supporting institutional structures to align rural electrification with reformed power sectors. It is cardinal to establish how privatised and commercialised power companies in a reformed power sector could contribute to rural electrification and the role of governments and government agents in facilitating expanded access to electricity in rural areas.