Publication - Closing the Circuit - Stimulated End-Use Demand for Rural Electrification

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Closing the Circuit - Stimulated End-Use Demand for Rural Electrification
Rocky Mountain Institute
Margaret Mccall & Scarlett Santana
Published in
October 2018
Electrification’s ultimate measure of success in developing nations—and its real contribution—is to

both meet basic humanitarian needs and underpin economic development. But most electrification programs focus on expanding supply with limited investment devoted to enabling end uses that drive productivity improvements and meet critical needs. For example, from 2000 to 2008, supply expansion represented almost half of the nearly $4 billion the World Bank approved for investment in energy access, whereas investment in productive use represented 0.7%.i In Africa, all investment in productive use financed technical assistance (TA); no such financing was directed to implement productive use investment projects.

In this report, the case is made for a greatly increased focus on supporting demand, outline the key barriers hampering increased use of electricity, and provide a succinct set of recommendations on actions that can be taken to complement the current focus on supply-side solutions.