Power to the people : rural electrification sector, summary report

Conclusions are as follows: (1) Programs helped the poor - who valued the programs and comprised a notable percentage of the beneficiaries - to electrify their homes, although their ability to use electricity productively was limited. (2) Public usage was primarily for lighting, e.g., in streets and public squares; further public usage would require explicit linkage of RE to strong, ongoing social service programs. (3) Economic impact was generally proportionate to level of development. Direct impact on agriculture was limited to large and fairly sophisticated operations, although there was a strong indirect impact on farm service industries such as equipment repair and crop processing. Impact on commerce and industry was greatest in relatively developed areas; complementary interventions such as credit and roads would be needed for there to be an impact in less developed rural areas. (4) The success of RE cooperatives depended on political traditions and support of the central government. Decisions on the type of organization (public, private, or cooperative) to manage electrical systems should be made in light of these findings and not in view of social participation, on which cooperatives had little impact. (5) Heavy government subsidies were the most common of the many methods used to achieve financial viability. Rate schedules were generally progressive and seldom reflected the true costs of service to rural areas, rapid expansion to which may actually endanger financial viability. U.S. technical standards may be unsuitable and too costly for low Third World consumption levels. Policy implications are that A.I.D. should: view RE as part of the energy sector and not as an end in itself; obtain clear notions of all costs and benefits (financial, social, political); in view of shrinking budgets, target interventions to its areas of strength; link programs to other development efforts in poorer areas, while realizing that the poorer the area, the less likely it is that RE will enhance development. A 4-page bibliography (1965-81) and several substantive annexes are included.