ABSTRACT

  1

In Sri Lanka the main supplier of electricity is the state owned national grid. At present the grid can supply only 45% of the households, mostly urban. The existing and planned Rural Electrification (RE) schemes are extensions of the national grid. RE schemes, although justified on the basis of social equity, are often a burden to the State. They are large scale and capital intensive schemes that are low on returns.

Village Micro Hydro projects, a pioneering effort of ITDG, generate electricity in remote villagés, and are operated and managed by the village communities. At the end of a five year pilot phase, Village Hydro can be recommended as a promising option for decentralised supply of electricity for rural areas. A comparison with the grid extended RE schemes indicate that the primary objectives of rural electrification can be met with Village Hydro with no or minimum cost to the state.

The pilot phase has identified a few areas which require further improvements. The State can capitalise on the positive aspects of Village Hydro to address rural electrification problem, by recognising Village Hydro as a practical option for rural electrification, and by extending support for further research and development. The spread of Village Hydro will contribute towards achieving rural electrification goals at a faster pace with no burden to the State.