Increasing the impact of electrification through the promotion of productive uses

Abstract

Electrification programs are often justified on the basis of expected socioeconomic benefits resulting from "productive uses" of energy such as increased income and additional employment creation. Productive uses of energy (PUE) are important, not only because they act as the main channel for translating energy access into poverty reduction through increased employment and incomes, but also because of their role in securing the sustainability of electrification. However, public authorities, utilities, and development partners are still not systematically integrating PUE promotion in the design of electrification programs. This can partly be explained by a general lack of knowledge within electric utilities, energy ministries, and energy departments of donor institutions regarding issues not directly related to energy. This paper attempts to start filling the knowledge gap of those in charge of planning and implementing electrification projects about how PUE can be actively promoted. Based on a review of existing experience with PUE promotion, the paper (i) identifies and discusses five different PUE promotion approaches that have been used by governments, utilities, and development organizations and (ii) describes the institutions involved in PUE promotion as well as the roles they typically perform.