Rural Energy Act 2005

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 21 April 2016

The Act establishes the Rural Electrification Agency, and Fund and mandates the Rural Electricity Board to administer the Rural Electrification Fund (REF) which is used for subsidies and grants to developers of rural energy projects to improve access to modern energy including renewable energy. The value of the REF was USD 49.5m in 2014.

The following ficing tools are offered through REF:

  • Grants for pre-/feasibility studies: up to USD 100,000 or 80% of study cost;
  • Grants for customer connection to grid or mini-grid: $500 per connection – max 80% of T&D costs of a project;
  • Construction loans: up to 70% of project cost (up to 85% for projects < 3MW) – term is 15yrs with 5yr grace.

The funds can be used for renewable energy projects.


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