PE Rural Electrification

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The objective of the Rural Electrification Project is to increase access to efficient and sustainable electricity services in rural areas of Peru. The project's global environmental objective is to achieve reduction of greenhouse gas emissions through use of renewable energy in rural areas for provision of electricity. The Project has five main components: (a) investment in rural electrification sub-projects by private and state-owned enterprises, supported by central government subsidies, to provide new electricity connections for rural households, businesses and public facilities, using both conventional grid electricity or renewable energy systems that would serve dispersed or remote populations; (b) technical assistance to catalyze private sector participation and create capacity for a demand driven approach for rural electrification (projects proposed by service providers in coordination with local communities and governments), as well as particular promotion of renewable energy; (c) a pilot program to promote productive uses; (d) a small hydro generation financing facility to provide project financing, during the construction and initial operation period, for grid-connected plants; and (e) project management.