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Question

How does rural electrification work if everyone can't afford to pay for it?

Key Words

grid, rural electrification, refrigeration, water pumping, lighting, grinding, milling, hard labor, debit cards, electricity meter, wind/solar system

Answer

It certainly seems like a chicken and egg problem. Yet rural electrification is spreading globally in many forms. There are numerous examples of how people find ways to afford the basic services of refrigeration, water pumping and lighting

Case 1: The UNDP has developed a multipurpose machine for grinding, power production, etc. — and the women pay $0.25 to get their grain milled — saving them three days of hard labor.

Case 2: in South Africa: Shell Solar has put in 6000 PV systems, where users buy time on a debit card — which is inserted into the meter when they want to use electricity. This system encourages conservation within each home.

Case 3: In a Mexican village, a wealthy American put in a wind/solar system for the village, trained three locals for servicing the system — and the villagers set up a payment agreement to cover ongoing costs.

In essence, the new energy resource in a village is often subsidized by a development organization, bank, NGO, or the UNDP. Often, the villlage will collectively pay and maintain the equipment, building their rural economy and then expand electrical services as the citizenship is able financially..

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