The limits of the concession-led model in rural electrification policy: The case study of Senegal

Abstract

The problem of providing electricity to rural sectors in developing countries has been approached by using a variety of strategies, with varying degrees of success. Governments with determination and resources have implemented a utility-led model to pursue or achieve rural electrification. In countries with fewer resources, Governments have opted for the concession-led model, in which rural areas are divided into zones or concession areas and offered to private companies for the provision of electricity. In developing countries, the concession-led model for the electrification of rural areas faces the serious hurdles of the abject poverty of farmers in many rural communities and the large number of small sized villages or highly dispersed settlements. This is the case of Senegal, which adopted the concession-led model, resulting in a rural electrification rate still under 40%. The current study first provides a detailed analysis of the challenges and achievements of the rural electrification program in Senegal. Secondly, we present our model for the creation of universal access to electricity, using the example of a pilot project in Coure Matar, a small village in Senegal. Our model is suitable for small villages, demonstrating the potential generation of job opportunities for small sized companies and the opportunity to achieve 100% rural electrification at a fraction (less than 16%) of the cost of the Senegalese Government's initial estimates to provide just 50% of rural electrification. In this study, the pilot project puts forth a model that could make the realization of universal access to basic electric services in rural areas, even in the poorest countries of the world, a reality.