Unless energy can be produced anddelivered more cheaply, it will stay beyond the reach ofmany of the poor. For energy delivered through networks, thecosts that matter are not only the unit energy costs, butthe costs of extending the network--into an urban slum, forexample, or to a rural town. Extending a network can be veryexpensive--a major barrier to access for poor households andsmall or isolated communitieds. A central goal of the reformof electricity and gas networks, now occurring in anincreasing number of developed and developing countries, isto provide incentives to reduce the costs of producingenergy and getting it to consumers. New technologies inelectricity are drastically reducing costs. But transmissioncosts are still a major hurdle to expanding networks inisolated or lightly populated areas. As a result it is theurban poor who stand the greatest chance of benefiting fromnetwork reform. For the rural poor, alternative solutions,including mini-grid and off-grid services, may be required.
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