Skip to main content
SpringerLink
Log in

Rural Electrification and Rural Development

  • Chapter
  • First Online:
Rural Electrification Through Decentralised Off-grid Systems in Developing Countries

Part of the book series: Green Energy and Technology ((GREEN))

Abstract

Recent interest in rural electrification has emphasised the importance of linking its development with productive uses for energy and poverty reduction. This has been viewed as necessary to increase the pace of rural electrification and reduce its concentration on a relatively small number of developing countries. Despite this emphasis, progress in electrifying remote rural areas has been slow. In part this has been attributed to the emphasis on cost recovery and a reliance on the private sector to deliver electricity widely. This chapter reviews the literature on the role and relation of infrastructure, particularly infrastructure in rural areas, to economic growth and development. It reviews the focus on poverty reduction by the major international development agencies and examines the arguments for increasing rural incomes. It critically reviews the economic and social issues underlying the development of rural electrification, drawing on the experience with both grid and off-grid applications in developing countries and assesses the impact of electrification on the ability to generate income in rural areas. Conclusions are drawn in relation to the beneficiaries of rural electrification, the constraints that are faced in stimulating economic activity that will contribute to making rural electrification more feasible and affordable and to the importance of complementary services and appropriate institutions to support rural electrification.

This chapter is a revised version of the paper Infrastructure, rural electrification and development by the author that was published in Energy for Sustainable Development, 15(3):304–13.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Adam C, Bevan D (2004) Aid and the supply side: public investment, export performance and Dutch disease in low income countries. Department of Economics Working Paper 201, Oxford University: Oxford.

    Google Scholar 

  • Addison, T., Hulme, D., Kanbur, R. (2008). Poverty dynamics: Measurement and understanding from an interdisciplinary perspective. BWPI Working Paper 19. Manchester: Brooks World Poverty Institute, University of Manchester.

    Google Scholar 

  • Adenikinju, A. (2005). Analysis of the cost of infrastructure in a developing economy: The case of the electricity sector in Nigeria. African Economic Research Consortium Research Paper 148, Nairobi.

    Google Scholar 

  • Adkins, E., Eapen, S., Kaluwile, F., Nair, G., & Modi, V. (2010). Off-grid services for the poor: Introducing LED lighting in the millennium villages project in Malawi. Energy Policy, 38, 1087–1097.

    Article  Google Scholar 

  • Agenor, P., Moreno-Dodson, B. (2006). Public infrastructure and growth: New channels and policy implications. Policy Research Working Paper Series 4064. Washington: World Bank.

    Google Scholar 

  • Agoramoorthy, G., & Hsu, M. (2009). Lighting the lives of the impoverished in India’s rural and tribal dry lands. Human Ecology, 37(4), 513–517.

    Article  Google Scholar 

  • Angel-Urdinola, D., & Wodon, Q. (2007). Do utility subsidies reach the poor? Framework and evidence for Cape Verde, Sao Tome, and Rwanda. Economics Bulletin, 9(4), 1–9.

    Google Scholar 

  • Balisacan, A., Banerjee, A., Cole, S., Pernia, E. (2002a). Probing beneath cross-national averages: Poverty, inequality and growth in the Philippines. ERD Working Paper Series no 7. Manila: Asian Development Bank.

    Google Scholar 

  • Balisacan, A., Pernia, E., & Asra, A. (2002b). Revisiting growth and poverty reduction in Indonesia: What do sub-national data show? ERD Working Paper Series no 25. Manila: Asian Development Bank.

    Google Scholar 

  • Barnes, D. (1988). Electric power for rural growth: how electricity affects rural life in developing countries. Boulder: Westview Press.

    Google Scholar 

  • Barnes, D., Foley G. (2004). Rural electrification in the developing world: a summary of lessons from successful programs. Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP), Washington: World Bank.

    Google Scholar 

  • Bastakoti, B. (2006). The electricity-livelihood nexus: Some highlights from the andhikhola hydroelectric and rural electrification centre (AHREC). Energy Sustain Development, 10(3), 26–35.

    Article  Google Scholar 

  • Bernstein, H., Crow, B., & Johnson, H. (1992). Rural livelihoods: Crises and responses. Oxford: Oxford University Press.

    Google Scholar 

  • Bhattacharya, S. (2007). Power sector reform in South Asia: Why slow and limited so far? Energy Policy, 35, 317–332.

    Article  Google Scholar 

  • Boccanfso, D., Estache, A., & Savard, L. (2009). A macro–micro analysis of the effects of electricity reform in Senegal on poverty and distribution. Journal Development Study, 45(3), 351–368.

    Article  Google Scholar 

  • Brew-Hammond, A. (2009). Energy access in Africa: Challenges ahead. Energy Policy, 1–11.

    Google Scholar 

  • Bricefio-Garmendia, C., & Klytchnikova, I. (2006). Infrastructure and poverty: What data are available for impact evaluation. Washington DC: World Bank.

    Google Scholar 

  • Calderon C, Serven L (2004) The effects of infrastructure development on growth and income distribution. World Bank Policy Research Working Paper 3400. Washington: World Bank.

    Google Scholar 

  • Chambers, R. (1997). Whose reality counts? Putting the last first. London: Intermediate Technology Development Group.

    Google Scholar 

  • Cherni, J., & Hill, Y. (2009). Energy and policy providing for sustainable rural livelihoods in remote locations—The case of Cuba. Geoforum, 40, 645–654.

    Article  Google Scholar 

  • Cook, P. (1988). Liberalizacion y politica de desarrollo industrial en los paises menos dessarrollados. El Trimestre Economico, LV, 1, 3–40.

    Google Scholar 

  • Cook, P. (1999). Privatisation and utility regulation in developing countries: The lessons so far. Annals Public Cooperative Economics, 70(4), 549–587.

    Article  Google Scholar 

  • Cook, P. (2006). Private sector development strategy in developing countries. In G. Hodge (Ed.), Privatization and market development. Cheltenham: Edward Elgar.

    Google Scholar 

  • Cook, P., & Uchida, Y. (2008). The performance of privatised enterprises in developing countries. Journal Development Study, 44(9), 1342–1353.

    Article  Google Scholar 

  • Covarrubias, A., & Reiche, K. (2000). A case study on exclusive concessions for rural off-grid service in Argentina. Washington: World Bank.

    Google Scholar 

  • Davidson, O., & Mwakasonda, S. (2004). Electricity access for the poor: A study of South Africa and Zimbabwe. Energy Sustain Development, 8(4), 26–40.

    Article  Google Scholar 

  • Davidson, O., Sokona, Y. (2002). A new sustainable energy path for African development: think bigger, act faster. Cape Town: Energy and Development Research Centre, University of Cape Town.

    Google Scholar 

  • Dinkelman, T. (2009). The effects of rural electrification on employment: New evidence from South Africa, mimeo: Princeton University.

    Google Scholar 

  • Dreze, J., & Sen, A. (1989). Hunger and public action. Oxford: Oxford University Press.

    Google Scholar 

  • Ellegard, A., Arvidson, A., Nordstrom, M., Kalumiana, O., Mwanza, C. (2004). Rural people pay for solar: Experiences from the Zambia PV-ESCO project. Renew Energy, 29, 1251–1263.

    Google Scholar 

  • Ellis, F. (2000). Rural livelihoods and diversity in developing countries. Oxford: Oxford University Press.

    Google Scholar 

  • Ellis, F. (2006). Rural poverty reduction. In D. Clark (Ed.), The Elgar companion to development studies. Cheltenham: Edward Elgar.

    Google Scholar 

  • Ellis, F., & Freeman, H. (2004). Rural livelihoods and poverty reduction strategies in four African countries. Journal Development Study, 40(4), 1–30.

    Article  Google Scholar 

  • Escribano, A., Guasch, J., Pena, J. (2010). Assessing the impact of infrastructure quality on firm productivity in Africa. Policy Research Working Paper 5191. Washington DC: World Bank.

    Google Scholar 

  • Esfahani, H., & Ramirez, M. (2003). Institutions, infrastructure and economic growth. Journal of Development Economics, 70, 443–477.

    Article  Google Scholar 

  • ESMAP. (2003). Rural electrification and development in the Philippines: Measuring the social and economic benefits. Energy Sector Management Assistance Programme, 255/03. Washington DC: World Bank.

    Google Scholar 

  • Estache, A., Fay, M. (2007). Current debates on infrastructure policy. Policy Research Working Paper 4410. Washington DC: World Bank.

    Google Scholar 

  • Estache, A., Gomez-Lobo, A., & Leipziger, D. (2001). Utilities privatisation and the poor: Lessons and evidence from Latin America. World Development, 29(7), 1179–1198.

    Article  Google Scholar 

  • Fan, S,. Chan-Kang, C. (2002). Growth, inequality, poverty reduction in Rural China. Research Report 125. Washington DC: IFPRI.

    Google Scholar 

  • Foley, G. (1992). Rural electrification in the developing world. Energy Policy, 20, 145–152.

    Article  Google Scholar 

  • Freeman, D., & Norcliffe, G. (1981). The rural nonfarm sector and the development process in Kenya. In G. Norcliffe & T. Pinfold (Eds.), Planning African development. London: Croom Helm.

    Google Scholar 

  • Gibson, J., & Olivia, S. (2009). The effect of infrastructure access and quality on non-farm enterprises in Rural Indonesia. World Development, 38(5), 717–726.

    Article  Google Scholar 

  • Grinspun, D. (2001). Choices for the poor: Lessons from national poverty strategy. New York: United Nations Development Programme.

    Google Scholar 

  • Grossman, G., Krueger, A. (1995). Economic growth and the environment. Q J, 10(2), 353–377.

    Google Scholar 

  • Gustavsson, M. (2007). Educational benefits from solar technology—Access to solar electric services and changes in children’s study routines, experiences from Eastern Province Zambia. Energy Policy, 35, 1292–1299.

    Article  Google Scholar 

  • Harriss, B. (1987). Regional growth linkages with agriculture. Journal Development Study, 23(2), 275–289.

    Article  Google Scholar 

  • Hart, G. (1993). Regional growth linkages in the era of liberalisation: A critique of the new agrarian optimism. World Employment Programme Research Working Paper no 37. Geneva: International Labour Office.

    Google Scholar 

  • Hayami, Y., & Ruttan, V. (1971). Agricultural development: An international perspective. Baltimore: John Hopkins University Press.

    Google Scholar 

  • Heltberg, R. (2004). Fuel switching: evidence from eight developing countries. Energy Economics, 26, 869–887.

    Article  Google Scholar 

  • Hiremath, R., Kumar, B., Balachandra, P., Ravindranath, N., & Raghunandan, B. (2009). Decentralised renewable energy: Scope, relevance and applications in the Indian context. Energy Sustain Development, 13, 4–10.

    Article  Google Scholar 

  • Hirschman, A. (1970). Development prospects observed. Washington DC: Brookings Institution.

    Google Scholar 

  • Howells, M., Alfstad, T., Victor, D., Goldstein, G., & Remme, U. (2005). A model of household energy services in a low-income rural African village. Energy Policy, 33, 1833–1851.

    Article  Google Scholar 

  • Howells, M., Victor, D., Gaunt, T., Elias, R., & Alstad, T. (2006). Beyond free electricity: The costs of electric cooking in poor households and a market-friendly alternative. Energy Policy, 34, 3351–3358.

    Article  Google Scholar 

  • Howells, M., Jonsson, S., Kack, E., Lloyd, P., Bennett, K., Leiman, T., et al. (2010). Calabashes for kilowatthours: Rural energy and market failure. Energy Policy, 38(6), 2729–2738.

    Article  Google Scholar 

  • Huang BN, Hwang M, Yang C (2008) Causal relationship between energy consumption and GDP growth revisited: a dynamic panel data approach. Ecol Econ, 41–54.

    Google Scholar 

  • Hulme, D., & Shepherd, A. (2003). Conceptualising chronic poverty. World Development, 31(3), 403–423.

    Article  Google Scholar 

  • IEA. (2009). World energy outlook. Paris: International Energy Agency.

    Google Scholar 

  • IEG. (1994). Evaluation results independent evaluation group. Washington DC: World Bank.

    Google Scholar 

  • Johnston, B., & Mellor, J. (1962). The role of agriculture in economic development. American Economic Review, 51(4), 566–593.

    Google Scholar 

  • Kanagawa, M., & Nakata, T. (2008). Assessment of access to electricity and the socio-economic impacts in rural areas of developing countries. Energy Policy, 36, 2016–2029.

    Article  Google Scholar 

  • Kirubi, C., Jacobson, A., Kammen, D., & Mills, A. (2008). Community-based electric micro-grids can contribute to rural development: Evidence from Kenya. World Development, 37(7), 1208–1221.

    Article  Google Scholar 

  • KPLC (2007) Kenya power and lighting company annual report and accounts 2006–2007; Nairobi.

    Google Scholar 

  • Kraft, J., & Kraft, A. (1978). On the relationship between energy and GNP. Journal Energy Development, 3, 401–403.

    Google Scholar 

  • Krugman, P. (1995). Development, geography and economic theory. Cambridge, MA: MIT Press.

    Google Scholar 

  • Mapako, M., & Prasad, G. (2008). Rural electrification in Zimbabwe reduces poverty by targeting income-generating activities. South Africa: Energy Research Centre, University of Cape Town, Cape Town.

    Google Scholar 

  • Louw, K., Conradie, B., Howells, M., & Dekenah, M. (2008). Determinants of electricity demand for newly electrified low-income African households. Energy Policy, 36, 2812–2818.

    Article  Google Scholar 

  • Matin, I., & Hulme, D. (2003). Programs for the poorest: Learning from the IVGVD program in Bangladesh. World Development, 31(3), 647–665.

    Article  Google Scholar 

  • Minogue, M. (2004). What connects regulatory governance to poverty? Centre on Regulation and Competition. Manchester: University of Manchester.

    Google Scholar 

  • Moner-Girona, M. (2009). A new tailored scheme for the support of renewable energies in developing countries. Energy Policy, 37, 2037–2041.

    Article  Google Scholar 

  • Mustonen, S. (2010). Rural energy survey and scenario analysis of village energy consumption: a case study of Lao People’s Democratic Republic. Energy Policy, 38(2), 1040–1048.

    Article  Google Scholar 

  • Ozturk, I. (2010). A literature survey on energy-growth nexus. Energy Policy, 38, 340–349.

    Article  Google Scholar 

  • Pearce, D., Webb, M. (1987). Rural electrification in developing countries: A reappraisal. Energy Policy, 329–338.

    Google Scholar 

  • Peters, J., Harsdorff, M., & Ziegler, F. (2009). Rural electrification: Accelerating impacts with complementary services. Energy Sustain Development, 13, 38–42.

    Article  Google Scholar 

  • Prasad, G. (2008). Energy sector reform, energy transitions and the poor. Energy Policy, 36, 2806–2811.

    Article  Google Scholar 

  • Prasad, G., & Dieden, S. (2007). Does access to electricity enable the uptake of small and medium enterprises in South Africa. South Africa: Domestic Use of Energy Conference.

    Google Scholar 

  • Reinikka, R., & Svensson, J. (2002). Coping with poor public capital. Journal of Development Economics, 69(1), 51–69.

    Article  Google Scholar 

  • Renkow, M., Hallstrom, D., & Karanja, D. (2004). Rural infrastructure, transaction costs and market participation. Journal of Development Economics, 73, 349–367.

    Article  Google Scholar 

  • Rogaly, B. (2006). Migration for rural work. In D. Clark (Ed.), The Elgar companion to development studies. Cheltenham: Edward Elgar.

    Google Scholar 

  • Romp, W., de Haan, J. (2005). Public capital and economic growth: A critical survey. European Investment Bank Papers, 10(1), Luxemburg.

    Google Scholar 

  • Satterthwaite, D., & Tacoli, C. (2002). Seeking an understanding of poverty that recognises rural–urban differences and rural–urban linkages. In C. Radodi & T. Lloyd-Jones (Eds.), Urban livelihoods: A people-centred approach to reducing poverty. London: Earthscan.

    Google Scholar 

  • Sebitosi, A., Pillay, P., & Khan, M. (2006). An analysis of off grid electrical systems in Rural Sub- Saharan Africa. Energy Conservation Management, 47, 1113–1123.

    Article  Google Scholar 

  • Sen, A. (1981). Poverty and famines: An essay on entitlement and deprivation. New York: Oxford University Press.

    Google Scholar 

  • Sen, A. (1999). Development as freedom. Oxford: Oxford University Press.

    Google Scholar 

  • Sovacool, B. (2010). A comparative analysis of renewable electricity support mechanisms for Southeast Asia. Energy, 35(4), 1779–1793.

    Article  Google Scholar 

  • Steinbuks, J., & Foster, V. (2010). When do firms generate? Evidence on in-house electricity supply in Africa. Energy Economics, 32(3), 505–514.

    Article  Google Scholar 

  • Straub, S. (2008). Infrastructure and growth in developing countries: Recent advances and research challenges. Policy Research Working Paper Series 4460. Washington DC: World Bank.

    Google Scholar 

  • Straub, S., Vellutini, C. (2006). Assessment of the effect of infrastructure on economic growth in the East Asia and Pacific Region, mimeo, Washington DC: World Bank.

    Google Scholar 

  • UN. (2000). Millennium declaration and millennium development goals. United Nations, New York.

    Google Scholar 

  • UNDP. (1997). Human development report. New York: United Nations Development Programme.

    Google Scholar 

  • Van de Walle, D. (2002). Choosing rural investments to reduce poverty. World Development, 30(4), 575–589.

    Google Scholar 

  • Wamukonya, N. (2001), Davis M. Socio-economic impacts of rural electrification in Namibia: Comparisons between grid, solar and unelectrified households. Energy Sustain Development, 5(3), 5–13.

    Google Scholar 

  • Whittington, D., Davis, J., Prokopy, L., Komives, K., Thorsten, R., Lukacs, H., et al. (2008) How well is the demand-driven, community management model for rural water supply systems doing? Evidence from Bolivia, Peru and Ghana. BWPI Working Paper 22 Brooks World Poverty Institute, University of Manchester; Manchester.

    Google Scholar 

  • Wolde-Rufael, Y. (2009). Energy consumption and economic growth: The experience of African countries revisited. Energy Economics, 31(2), 217–224.

    Article  Google Scholar 

  • World Bank. (1975). Rural electrification. Policy paper no PUB-517. Washington DC: World Bank.

    Google Scholar 

  • World Bank. (1993). Energy efficiency and conservation in the developing world. Policy paper. Washington DC: World Bank.

    Google Scholar 

  • World Bank. (1993b). The World Bank’s role in the electric power sector: Policies for effective institutional, regulatory and fuel reform. Working Paper. Washington DC: World Bank.

    Google Scholar 

  • World Bank. (1995). Bureaucrats in business. Washington DC: World Bank.

    Google Scholar 

  • World Bank. (1996). Rural energy and development, improving energy supplies for two billion people. Washington DC: World Bank.

    Google Scholar 

  • World Bank. (2000). Attacking poverty, world development report 2000/2001. Oxford: Oxford University Press.

    Google Scholar 

  • World Bank. (2007). World bank development indicators. Washington DC: World Bank.

    Google Scholar 

  • World Bank. (2008). The welfare impact of rural electrification: A reassessment of the costs and benefits. An IEG Impact Evaluation. Washington DC: World Bank.

    Google Scholar 

  • Yadoo, A., & Cruickshank, H. (2010). The value of cooperatives in rural electrification. Energy Policy, 38(6), 2941–2947.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Centre on Regulation and Competition, University of Manchester, Manchester, UK

    Paul Cook

Authors
  1. Paul Cook
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Paul Cook .

Editor information

Editors and Affiliations

  1. , Institute of Energy and, De Montfort University, The Gateway, Leicester, LE1 9BH, United Kingdom

    Subhes Bhattacharyya

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag London

About this chapter

Cite this chapter

Cook, P. (2013). Rural Electrification and Rural Development . In: Bhattacharyya, S. (eds) Rural Electrification Through Decentralised Off-grid Systems in Developing Countries. Green Energy and Technology. Springer, London. https://doi.org/10.1007/978-1-4471-4673-5_2

Download citation

  • DOI: https://doi.org/10.1007/978-1-4471-4673-5_2

  • Published:

  • Publisher Name: Springer, London

  • Print ISBN: 978-1-4471-4672-8

  • Online ISBN: 978-1-4471-4673-5

  • eBook Packages: EnergyEnergy (R0)

Publish with us

Policies and ethics

Search

Navigation