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Policies

The Rural Electrification Fund

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 17 February 2017

The Rural Electrification Fund has the following objectives:

  • To provide loan and technical services for Rural Electrification Projects carried out by private operators, cooperatives and local communities and more specifically for those projects operating on renewable energy sources;
  • To encourage the utilization of electricity for production and social welfare purposes in rural areas.

In order to achieve its objectives, the Fund provides:

  • Concessional loans to diesel (85% loan with interest of 7.5%) and renewable energy projects (95% loan with zero interest). 
  • Capital subsidies of 20-30% on the investment costs to renewable energy project developers on a reimbursement basis.

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