Rural Electrification : Lessons Learned

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