Adding electric-powered wells for clean water can prevent many water-borne diseases. Refrigerators increase the time that food can be stored, potentially reducing hunger, while evening lighting can lengthen a community's daylight hours.
Many contest that the Rural Utility Service, which is responsible for providing loans and subsidies for electric utilities who build in rural areas is outdated and is inhibiting free-market competition. Over 99% of rural farms have access to electricity, but many may benefit more from utility competition and renewables.
Since modern power distribution networks can cheaply include optic fibres in the centre of one of the wires, telephone and internet service may become available with rural electrification.
Locally generated renewable energy is favored by some countries, notably China, which has one of the world's largest rural electrification programs.
The problem is not one of distribution, but of provision. Many people attempt to steal electric power. The electric company then responds with punitive "tampering tariffs" that require payment for all the electricity that the fraudulent connections and meters might have stolen. These very high tariffs are unaffordable, resisted by all but the wealthiest users. The result is that the underfunded electric power company reduces service to the amount of electricity it can afford to produce. The electric companies therefore also prefer to serve large institutional customers that pay their bills.
Developments on cheap solar technology is considered as a potential alternative that allows an electricity infrastructure comprising of a network of local-grid clusters with distributed electricity generation. That could allow bypassing, or at least relieving the need of installing expensive, and lossy, long-distance centralised power delivery systems and yet bring cheap electricity to the masses.
The government has proposed legislation to have village leaders operate local generators run from biomass (see links). Locally-controlled generation is preferable to distant generation because the fuel, billing and controls for the generator will then be controlled by the villagers themselves, and they are thought more likely to come to an equitable arrangement among themselves.
However, there is doubt that villagers can run such an installation.
One proposal for such an installation would be to ferment the biomass, and use the resulting gas to run a clean diesel engine producing about 500 kW. Directly burning the biomass would require that it be dried from 50% water content to 10-15%, and this uses energy. In contrast, fermenting biogases is well-established technology, and produces fuel directly usable in a diesel engine. Also, since the fuel is almost pure methane, the diesel's exhaust would itself be clean drinking water, and the heat of the exhaust could be used to distill more clean drinking water.
In Europe exists the Alliance for Rural Electrification (ARE), an international non-profit organization founded in 2006 . The Partners of ARE are:
Before 1936, a small but growing number of farms installed small wind-electric plants. These generally used a 40V DC generator to charge batteries in the barn or the basement of the farmhouse. This was enough to provide lighting, washing machines and some limited well-pumping or refrigeration. Wind-electric plants were used mostly on the great plains, which have usable winds on most days.
In 1936 the Rural Electrification Act was enacted. Also, the Tennessee Valley Authority is an agency involved in rural electrification.
The Rural Electrification Administration (REA), a former agency of the U.S. Department of Agriculture, was charged with administering loan programs for electrification and telephone service in rural areas. The REA was created in 1935 by executive order as an independent federal bureau, authorized by the United States Congress in 1936, and later in 1939, reorganized as a division of the U.S. Dept. of Agriculture. The REA undertook to provide farms with inexpensive electric lighting and power. To implement those goals the administration made long-term, self-liquidating loans to state and local governments, to farmers' cooperatives, and to nonprofit organizations; no loans were made directly to consumers. In 1949 the REA was authorized to make loans for telephone improvements; in 1988, REA was permitted to give interest-free loans for job creation and rural electric systems. By the early 1970s about 98% of all farms in the United States had electric service, a demonstration of REA's success. The administration was abolished in 1994 and its functions assumed by the Rural Utilities Service.
The 1937 movie Slim (based on the novel by William Wister Haines) starring Henry Fonda salutes the linemen who wired the remote parts of the United States for electric power during the 1930s and realistically details many of the dangers they faced climbing towers and working on energized high-voltage equipment. The movie is shown occasionally on Turner Classic Movies and is said to have been one of Henry Fonda's favorite roles. The beginning of the film contains a montage tribute to the men who pioneered the electric power industry and contains scenes from REA documentaries describing the electrification of America.