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Rural electrification is not an end unto itself, but rather a critical input for rural economic development. In all its electrification programs, NRECA International has coordinated closely with rural development programs in health, education, water supply, communications, agriculture, to ensure that the rural electricity system can be used to improve citizens’ quality of life, and support the development of economically productive activities. In order to be successful, rural electrification programs must identify and evaluate how new energy systems can serve existing and future demand for these services. Therefore, wherever possible, NRECA International attempts to incorporate the promotion of productive (income-generating) end-uses as an integral component of its electrification efforts.
NRECA International’s promotion of electrification and its role in economic development includes consumer education and training, demonstration projects, and financing for equipment and materials that utilize electricity to improve production and efficiency.
In Bangladesh, NRECA International identified a low-cost pumped irrigation technology and disseminated it widely in electric cooperative areas, which played a significant role in the dramatic increase in rice production recorded over the past 20 years.
In El Salvador, NRECA initiated a “traveling productive uses” effort which demonstrated agro-processing, carpentry, refrigeration, irrigation, and garment-making equipment to consumers in newly-electrified areas. Nine years later, studies revealed that, where the demonstrations were held, electricity consumption per consumer was 50% higher than in areas that had not had the demonstrations, and with much higher connection rates.
In Guatemala and in other countries, NRECA has utilized proceeds from the monetization of commodities from the U.S. Department of Agriculture's Commodity Assistance Program to fund revolving credit programs that provide low cost loan financing to agricultural producers and entrepreneurs for purchase of equipment to expand production and post-harvest processing. The programs have directly contributed to production increases, lowered cost of inputs, generated greater income, and improved the economic well being of the beneficiaries that they serve.
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