This ESMAP study was a response to arequest by the World Bank's Latin America and Caribbean(LAC) Regional Office for support in designing an innovativeproject to deliver energy services to dispersed rural areasof Brazil. The project aims to address the likely adverseconsequences of privatizing the state power utilities onincentives for investments to supply essential electricityservices to the dispersed, low-income population in ruralareas of Brazil. To improve electricity access to theseareas in the long term, needed is a commercially sustainabledissemination activity that should be carried out by andwith equity from the private sector, through a system ofincentives that assures fair returns to private participantswhile minimizing government subsidies. The coverage shouldinclude productive applications, community-oriented orpublic service applications, and residential applications.An optimal mix of subsidized and unsubsidized marketsegments and a critical total mass of potential customersare the key ingredients that could attract private investorsin the dispersed area market. This type of effort isconsistent with the Bank's current Country AssistanceStrategy for Brazil, which emphasizes the importance ofprivate sector-led growth, poverty reduction policies, andenvironmental objectives.
PDF
download
878987797
028-85220240
