Increasing access to energy services in rural areas - REEEP ...
Increasing access to energy services in rural areas - REEEP ...
Increasing access to energy services in rural areas - REEEP ...
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUAL<br />
page 10.94<br />
5. DECENTRALIZED INITIATIVES<br />
The allocations <strong>in</strong>cluded <strong>in</strong> the national budget favour<strong>in</strong>g the M<strong>in</strong>istry of<br />
Agriculture are another important source of fund<strong>in</strong>g for <strong>rural</strong> electrification. These<br />
funds are provided by the federal budget <strong>to</strong> the municipal adm<strong>in</strong>istrations on a<br />
non-refundable basis. The funds f<strong>in</strong>ance grid <strong>in</strong>frastructure <strong>in</strong>vestments for a <strong>to</strong>tal<br />
of 42,750 community associations <strong>in</strong> 1,400 of the <strong>to</strong>tal 1,600 <strong>rural</strong> municipalities<br />
<strong>in</strong> north-east Brazil. Communities make their own development decisions through<br />
a process that promotes and depends on community organizations. The projects<br />
<strong>in</strong>clude grid-connected <strong>rural</strong> electrification projects and off-grid solar systems, <strong>in</strong><br />
addition <strong>to</strong> a plethora of other <strong>rural</strong> development projects.<br />
A key issue related <strong>to</strong> these projects is susta<strong>in</strong>ability. Unless the associations are<br />
strongly organized, their projects are difficult <strong>to</strong> ma<strong>in</strong>ta<strong>in</strong>. The case of grid-connected<br />
systems is less troublesome as they are absorbed by concessionaires, who<br />
are obliged <strong>to</strong> ma<strong>in</strong>ta<strong>in</strong> them.