Rural electrification programs are generally motivated by the effective and lasting impacts that they are expected to generate in the field. While there may be some natural trickle down effect from the massive investments required to reach high rates of rural electrification, spontaneous positive effects on social and economic development are generally limited by a number of local bottlenecks. Two of the most important deterrents to the productive uses of electricity are the lack of technical knowledge and skills of potential users and the financial means to acquire the relevant equipment. This paper argues that to be successful, rural electrification programs should target direct impact on livelihoods and revenue generation beyond the provision of connections and kilowatt-hours by implementing electricity projects that affect livelihoods and generate new revenues.
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