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Productive Use

Stimulating Demand and Economic Development with Electrification

Electrification’s ultimate measure of success—and its real contribution—is to both meet basic humanitarian needs and underpin economic development. There is no benefit to electricity access unless affordable, reliable electricity supply is accompanied by the means to use that power. At the same time, customers who use increasing amounts of electricity drive financial viability for the system by spreading high fixed costs over more electricity sales. Stimulating end-use consumption is both an end and a means of the energy access agenda.

Electrifying productive uses is critical to enabling access to sustainable, commercially -led electricity in un- and under-served rural communities in sub-Saharan Africa. Agricultural activities are the bedrock of the local economies in these communities. Yet, agriculture and electricity actors rarely coordinate to understand which agricultural activities to electrify (and where) to generate win-win opportunities for both sectors.

Many commercial electricity providers lack the knowledge of and linkages to the agricultural sector or the necessary financial resources to develop productive uses.

As a result, most investments in rural electrification are not accompanied by a surge of income-generating activity. To address this gap, RMI is working with partners in Nigeria and Ethiopia to develop and pilot innovative productive use business models that meet the needs of local entrepreneurs, their communities, and minigrid operators.

To learn more about RMI’s work focusing on productive use, view the blogs and reports below.

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