Presented by

Abdul Samad

“

”

A Research Paper on The Welfare

Impact of Rural Electrification

A Reassessment of the Costs and Benefits

An IEG Impact Evaluation

Presentation Structure

The benefits of Rural Electrification

Who Benefits from Rural Electrification

What is Electricity used for in rural areas

Importance of Rural Electrification

Lighting alone brings benefits such as:

increased study time

improved study environment for school children

extended hours for small businesses

greater security

Brings joy to their lives

“

”The main domestic uses of electricity are lighting and TV

Electricity supply reduces the

cost of energy to the user

Domestic Uses: Lighting and TV

Household electrification was found to have a significant impact on health outcomes in Bangladesh

Indoor air quality

Knowledge and fertility reduction

Calculations show that electrification results in fertility reduction.

Off-grid renewable energy activities have positive environmental benefits.

Adding Up the Benefits

Benefits from lighting and TV/radio

Education benefits from higher educational adds

Time saved from household chores (additional leisure time)

Productivity of home business

Similarly increased agricultural productivity

Rural Chinese village with electric poles

A woman in Bangladesh beside a household electric meter

Figures refer to year of approval. AFR = Africa; EAP = East Asia and

Pacific; ECA = Europe and Cen- tral Asia; LAC = Latin America and the

Caribbean; MENA = Middle East and North Africa; SA = South Asia.

LAC MENA AFR SA EAP ECA

25

20

15

10

5

0

A Growing Number of Rural Electrification Projects

Are in Latin America and Sub-Saharan Africa

Which Households Get Electricity ...

The factor behind low connection rates for the poor is that,

For example,

in Lao PDR an estimated 30 percent of the population cannot afford

the $100 connection charge.

in Namibia house- holds must have an annual income of at least

$2,500 to be eligible for an SHS

Comparison b/w near & Off – Grid

Least Cost

Bank support for financial viability

Subsidy provided

Modernized system of supply

Easily Repairing utilities

Low subsidy to rural areas &

Poor communication of tariff

structure

do not get information that

allows them to obtain their

maximum benefit

poorer households are not enabled

to connect to the grid

Once electricity arrives in a village, the connection charge is a

hurdle that prevents the poor from connecting to the grid,

The rural poor are less likely to have grid

connections for two reasons

First,

Second,

in nearly all countries, communities are ranked by a number of

criteria that usually favor the better-off communities

within a community connected to the grid, there will be some

households that cannot afford to connect

Despite the fact that energy expenditures are typically less for

electrified households, the connection fee acts as a barrier, preventing the

poorest from switching to the lower-cost source

Income Comparison b/w Rural & Urban Countries

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”

The poor are the leastable to take advantage of moving up the energy ladder from biofuels to electricity because of the connection chargebarrier

Biomass fuels such as dung and fuel wood are at the bottom of the

energy ladder and electricity at the top.

What Types of Connection Are There ???

Connections Can Be :

Residential

Industrial

Agricultural (usually irrigation) or

Commercial (retail and restaurant) or

or they can be for public and social facilities

and for street lighting

Per

cen

t o

f p

roje

ct

Connections, but also Other Connections for

Productive Purposes

100

90

80

70

60

50

40

30

20

10

0

Residential Agricultural Commercial SME Public

Type of connection

Before 1995 1995 and after

A Growing Number of Rural Electrification Projects

Are in Latin America and Sub-Saharan Africa

Ahmed, Kulsham, Yewande Awe, Douglas F.

Barnes, Maureen L. Cropper, and Masami Kojima.

2005.

En- vironmental Health and Traditional Fuel Use in

Guatemala. Washington, DC: World Bank.

Bardasi, Elena, and Quentin Wodon. 2006.

“Measuring Time Poverty and Analyzing Its

Determinants: Con- cepts and Applications in

Guinea.” Economics Bul- letin 10 (12):

1–7.

Barkat, Abul, S.H. Khan, M. Rahman, S. Zaman, A.

Pod- der, S. Halim, N.N. Ratna, M. Majid, A.K.M.

Maksud, A. Karim, and S. Islam. 2002. Economic

and Social Impact Evaluation Study of the Rural

Electrifica- tion Program in Bangladesh. Arlington,

VA: Human Development Research Centre and

NRECA Inter- national, Ltd.

References

Thank You For

Your Attention