This study first reviews the cost ofgrid extension in a number of countries. It then identifiesways to reduce costs by examining how they are affected by avariety of factors. An electricity supply system may bedivided into two discrete components: the grid extension andthe low-voltage distribution system. This study will focuson the first of these two components, the cost of gridextension. Three questions asked are: 1) What factors giverise to the costs commonly associated with grid extensionfor rural electrification? 2) Are high costs intrinsic togrid extension? If not, what has been learned fromexperiences around the world about technical design optionsthat can reduce the capital cost incurred in lineconstruction as well as the recurring costs incurred inoperating the system? 3) How low can these costs typically be?
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