Best Practice Manual : Promoting Decentralized Electrification Investment

Abstract

This paper provides background information on decentralized electrification, and, attempts to fulfill two objectives: review methods of decentralized electrification intervention, and provide a step-by-step approach for project implementation. Chapter 1 provides a brief overview, and summary of rural electrification options, while Chapter 2 identifies implementation options for decentralized electrification, focusing on either individual initiatives, or collective/cooperative approaches. Discussions of key factors necessary to create a conducive environment for the promotion of decentralized electrification are featured in Chapter 3, which includes legal, regulatory, and fiscal incentives, in addition to sustainable financing mechanisms, and necessary technical assistance to promote projects. Chapter 4 then defines the role of government, and briefly discusses the functions of government agencies for the promotion of decentralized electrification. Chapter 5 provides a step-by-step guide through five stages for project implementation, each stage divided into discrete steps to explore a project's feasible decentralized electrification. Such steps deal with institutional and regulatory environment, market identification and assessment, technology and product options, delivery mechanisms, and financing.