Leveraging electrification benefits by supporting the development of income-generating opportunities in rural areas Sample Clauses

Leveraging electrification benefits by supporting the development of income-generating opportunities in rural areas. A REN program brings electricity to remote, rural areas. Beyond increasing standards of living, electrification also create new opportunities for income-generating activities. Thanks to extended hours of business activities, electrification first enables microentrepreneurs to increase their existing activities (handicraft, night markets, night activities such as those linked to beauty care, etc.). Second, electrification brings the opportunity to add value to existing agricultural productions, by enabling the use of upgraded technologies for transformation and conservation activities for instance (e.g. through the use of multifunctional platforms or cold generators). And third, electrification can create opportunities for new businesses. In the particular case of Solar Home System, RENDEV has identified that the following activities could be developed: mobile phone charging station, community TV, TV and radio as marketing tools for restaurants, etc. Microfinance can have a strong role to play in villages that gain access to solar electricity by helping people take advantage of these new business opportunities. Beyond the mere access to electricity, it is the whole local economy that can be fostered. Furthermore, if people see that their current activities (agriculture, livestock, transformation and conservation, handicraft) can gain from access to electricity, they will be more likely to invest in REN technologies and they will pay greater attention to the good care and maintenance of their equipment. Demonstrating the clear economic benefits of electrification is thus important to ensure the success of a national solar energy program. Opportunities should therefore be identified by the national program and promoted during awareness raising campaign and end-user training, in order to deepen the impact of the program on the rural economy by generating additional sources of income for the communities. The development of microfinance services in remote, rural areas should be strongly promoted in this perspective. Next steps for Indonesia: Promote the development of financial services that will support the development of REN suppliers’ activities. Support the development of microfinance services in rural areas in order to help rural populations take advantage of the new business opportunities brought by electrification.
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