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Erschienen in:

2011 | OriginalPaper | Buchkapitel

8. Paying for the Vision: New Financial Models for Distributed Electrification

verfasst von : Hisham Zerriffi

Erschienen in: Rural Electrification

Verlag: Springer Netherlands

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Abstract

As noted throughout this book, rural electrification is a challenge because the costs of service are generally high and the willingness and ability to pay of the majority of customers are generally low. The prior chapter outlined a new vision for rural electrification based on policies that would include rural development as a priority and would emphasize affordability of rural electrification costs. This would require a shift in policies and, in many places such as Brazil, a shift in the regulatory system to remove technical barriers. However, even with those changes, the underlying financial difficulties inherent in rural electrification would remain. In particular, there would still be legitimate issues with the ability of rural populations to pay for electricity and equity issues regarding services for urban and rural consumers. This chapter addresses these issues directly.

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Vorheriges Kapitel Beyond Charity: Universal Service and a Vision for Distributed Electrification

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Though, in principle, this may result not in a lack of electrification activity, but instead in activity outside of the legal regulatory regime.

Those consuming less than 80 kWh per month automatically get the reduced rates. Those between 80 and 200 can get a reduced rate if they are on the rolls of the social assistance programs that deliver other services.

Some form of backstop guarantee may be necessary to ensure that communities would continue to receive electricity even if the new institutional arrangement failed. That way areas in which pilot programs were initiated would not be penalized for their willingness to experiment with the new institutional arrangements. In places where strong universal service commitments have been made, the program may also have to be implemented in a way that maintains the obligations for universal service that the population has come to expect (e.g. in Brazil). Utilities would not be let completely off the hook if other actors were not ready to move in and take their place.

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Titel: Paying for the Vision: New Financial Models for Distributed Electrification
verfasst von: Hisham Zerriffi
Verlag: Springer Netherlands
Buch: Rural Electrification
Print ISBN: 978-90-481-9593-0

Electronic ISBN: 978-90-481-9594-7

Copyright-Jahr: 2011
DOI: https://doi.org/10.1007/978-90-481-9594-7_8