Impact


The availability of electricity opens many more doors for a community then just being able to see in the dark. With the availability of electricity comes accelerated potential for growth for individuals, families, businesses, and for the village as a whole.

It has been said that rural communities do not lack access to energy, what they lack are the resources needed to convert it to a form useful to them. This includes primarily the initial capital but also the technical knowledge and materials. If these communities were not poor, the utility companies would not hesitate to connect them to the grid (since they would make a significant amount of money off of them). If they weren’t poor, they could build their own systems to generate their own energy.  Because they are poor, they do not have access to electricity and because they do not have access to electricity, they have little opportunity to rise from poverty. Therefore, increasing the availability of electricity in any developing context is critical in the efforts to reduce poverty.

Money Savings
However, if the communities are poor how can they pay for electricity? Many communities living without electricity still find a way to light their homes, and some even have cell phones, paying exorbitant amounts for recharging. In the United States, D batteries can cost up to $80 per kWh ( See Figure1)  where as electricity from the grid would cost about 11 cents[1]. Paying for electricity will actually save families money compared to the compared to the high costs of batteries, kerosene, and candles that they are currently paying for in alternative forms of lighting.

Many household uses of electricity (generally the ones most desired by the community such as television, radio, cell phones, etc.) cannot be sustainably paid for if they are not increasing the user’s income in some way. So the focus in the community should be on enterprise development and how they can productively use the electricity to increase their income. In this way, they will be able to pay for increased electricity in their homes and improve the standard of living for themselves and their families.

Communication
Cell phones are something found even in villages without electricity mostly because of its low cost and social benefits. However, the convenience of being able to charge a cell phone at home for a more affordable price will encourage even more people to purchase cell phones. Increased communication through cell phones, internet, or any medium can also aid in business development through marketing and advertising.

Health
A steady flow of electricity in the form of lighting, refrigeration, and power tools brings about the option of local health care. This means that with lighting, clinics can stay open after dark and surgeries can be performed with a safe level of increased visibility.  With refrigeration, medicines can be stored transplants and transfusions can be preserved.  Tools that require electricity can now be used, expanding the range of what surgeries can be performed. Increased communication can also help in health care in that with cell phones, doctors and nurses can be contacted faster and with internet, unknown symptoms, illnesses, and remedies can be researched.  With better and more accessible health care, people are less likely to get sick and take time off from their daily income generating activities. More time spent working means more money made in the long run.



Education
Children have now extended the hours that they can read and do homework. Also added electrical tools for processing foods and cooking may allow children to spend less time helping their parents for their livelihood and more time in school and doing homework. Computers and internet are also other tools that become an option when electricity is available, expanding the information base of all the children and teachers that have access to it. Teachers will also have an easier time preparing lesson plans at night and can be more assessable to their students and parents of students through cell phone or email. Increased education means children can perform better in school, are less likely to drop out, and in the long run may have higher income jobs.

Business Development
Business and entrepreneurship are the areas most visibly impacted by availability of affordable and reliable electricity. Lighting alone allows shops to be open later, extending the hours of sales. Liting also allows other workers including farmers, weavers, craftsman, etc. to extend their hours increasing their daily productivity. Machinery such as irrigation pumps can increase the output of a farmers land and save them time performing tedious tasks. Food processors such as grain mills and dryers can cut processing time and create opportunity for new businesses to emerge. Food can now be stored through refrigeration, wasting less and selling more. Extended preservation and processing means certain foods can also be sold when they are not in season increasing the farmer’s profits. Ovens can be used in bakeries and restaurants can easily cook and store food, print menus, and light tables.

The availability of electricity means people are not limited to the capacity of what their hands and land can produce. Many doors open up with even a small investment such as a light bulb. The more the local businesses grow the more spending power is in the hands of the community and the more the local economy is stimulated. This means less struggling for workers, an increased standard of living for families, and a more comfortable lifestyle for everyone. 



[1] US Energy Administration Information