JOBS

GENERATEDBY

THESECOND

RURALELECTRIFICATIONPROJECT

INPERUCASESTUDYJob

Creation

Potential

of

theClean

Energy

TransitionJOBS

GENERATEDBY

THESECOND

RURALELECTRIFICATIONPROJECT

INPERUCASESTUDYJob

Creation

Potential

of

theClean

Energy

TransitionABOUTESMAPTheEnergySectorManagementAssistanceProgram(ESMAP)is

a

partnership

betweentheWorldBankandover

20partnerstohelplow-and

middle-incomecountriesreduce

povertyand

boostgrowththroughsus-tainableenergysolutions.ESMAP’sanalyticaland

advisoryservicesarefullyintegratedwithintheWorldBank’scountry?nancingandpolicydialogueintheenergysector.ThroughtheWorldBank,ESMAPworkstoacceler-atetheenergytransitionrequiredtoachieveSustainableDevelopmentGoal7

(SDG7),whichensuresaccesstoa?ordable,

reliable,sustainable,and

modernenergyfor

all.IthelpsshapeWorldBankstrategiesandprogramstoachievetheWorldBank’sClimateChangeActionPlantargets.Learnmoreat:.?November2023|InternationalBankforReconstructionandDevelopment/TheWorldBank1818HStreetNW,Washington,DC20433Telephone:202-473-1000;Internet:Thiswork

is

a

productoftheWorldBank,withcontributionsgivenbythesta?

and

consultantslistedintheacknowledgments.The?ndings,interpretations,and

conclusionsexpressedinthiswork

donotnecessarilyre?ecttheviewsoftheWorldBank,itsBoardofExecutiveDirectors,orthegovernmentstheyrepresent.TheWorldBankdoesnotguaranteetheaccuracyofthedataincludedinthiswork.Theboundaries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartoftheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries.Nothinghereinshallconstituteorbeconsidered

tobe

a

limitationuponorwaiveroftheprivilegesandimmunitiesofTheWorldBank,allofwhicharespeci?callyreserved.RightsandPermissionsThisworkisavailableundertheCreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO)http:///licenses/by/3.0/igo.UndertheCreativeCommonsAttributionlicense,youarefreetocopy,distribute,transmit,andadaptthiswork,includingforcommercialpurposes,underthefollowingconditions:Attribution—Pleasecitetheworkasfollows:EnergySectorManagementAssistanceProgram(ESMAP).2023.JobsGeneratedbytheSecondRuralElectri?cationProjectinPeru:JobCreationPotentialoftheCleanEnergyTransition.ESMAPCaseStudy.Washington,DC:TheWorldBank.License:CreativeCommonsAttributionCCBY3.0IGOTranslations—Ifyoucreateatranslationofthiswork,pleaseaddthefollowingdisclaimeralongwiththeattribution:ThistranslationwasnotcreatedbyTheWorldBankandshouldnotbeconsideredano?cialWorldBanktranslation.TheWorldBankshallnotbeliableforanycontentorerrorinthistranslation.Adaptations—Ifyoucreateanadaptationofthiswork,pleaseaddthefollowingdisclaimeralongwiththeattribution:ThisisanadaptationofanoriginalworkbyTheWorldBank.ViewsandopinionsexpressedintheadaptationarethesoleresponsibilityoftheauthororauthorsoftheadaptationandarenotendorsedbyTheWorldBank.Third-PartyContent—TheWorldBankdoesnotnecessarilyowneachcomponentofthecontentcontainedwithinthework.TheWorldBankthereforedoesnotwarrantthattheuseofanythirdparty-ownedindividualcomponentorpartcontainedinthework

willnotinfringeontherightsofthosethirdparties.Theriskofclaimsresultingfromsuchinfringementrestssolelywithyou.Ifyouwishtore-usea

componentofthework,

it

isyourresponsibilitytodeterminewhether

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thatre-useand

toobtainpermissionfromthecopyrightowner.Examplesofcomponentscaninclude,butarenotlimited

to,tables,?gures,orimages.AllqueriesonrightsandlicensesshouldbeaddressedtoWorldBankPublications,TheWorldBank,1818HStreetNW,Washington,DC20433,USA;e-mail:pubrights@.ProductionCredits—Designer|CircleGraphics,Inc.CoverImageandotherphotos|?WorldBankAllimagesremainthesolepropertyoftheirsourceandmaynotbeusedforanypurposewithoutwrittenpermissionfromthesource.ContentsAcknowledgmentsAboutthisReportAcronymsvviviiviiiKeyFindings1.?Introduction152.?Summary

of

Relevant

World

Bank

Energy

Interventions3.?Overview

of

the

Labor

Market4.?Identi?cation

and

Quanti?cation

of

Jobs5.?Results131721373943476.?Sustainability

of

Productive

Uses

of

Electricity7.?Barriers

and

Enablers

of

Productive

Use

of

Electricity8.?ConclusionReferencesJOBSGENERATEDBYTHESECONDRURALELECTRIFICATIONPROJECTINPERUiiiListofTables,Figures,andBoxesList

of

TablesTable1.SelectedIndicators,Targets,andAchievementfortheKeyProjectDevelopmentObjectiveofRE1Table2.SelectedIndicators,Targets,andAchievementfortheKeyProjectDevelopmentObjectiveofRE2Table3.CharacteristicsandAchievementsofDistributionCompaniesUnderComponents1and2ofRE2589Table4.DistributionofEmploymentTypebyUrbanandRuralStatus(%ofTotal,UrbanorRuralLaborForce)Table5.RuralLaborMarketintheInterventionAreasTable6.SectoralDistributionoftheRuralLaborForceintheInterventionRegions(%)Table7.SummaryofInterviewsbyJobTypeTable8a.DirectJobs:KeyIndicatorsforElectricityDistributionCompaniesTable8b.DirectJobs:KeyIndicatorsforNongovernmentalOrganizationsTable9.InducedJobsTable10.InnovationFollowingConnectiontotheGridandEmploymentResultsTable11.ElectricityPricesByRegionOverTime131415182223273140Table12.Person-YearsofEmploymentAssociatedwiththeGridExtensionandProductiveUseofElectricityComponentsofRE2inPeru43457List

of

FiguresFigure1.TheoryofChangeforComponents1and2ofRE2inPeruList

of

BoxesBox1.LessonsLearnedfromRE1ivCONTENTSAcknowledgmentsThisworkwasmadepossiblebytheEnergySectorManagementAssistanceProgram(ESMAP)with?nancialsupportfromtheRoyalMinistryofForeignA?airsofDenmark.ESMAPisapartnershipbetweentheWorldBankand19donorstohelplow-andmiddle-incomecountriesreducepovertyandboostgrowththroughsustainableenergysolutions.Thereportwaspreparedbya

teamcoordinatedbyZuzanaDobrotková(SeniorEnergySpecialist)andcomprisingofSheoliPargal(LeadEnergyEconomist),AnnaAghababyan(SeniorOperationsO?cer)andAndersPedersen(SeniorEnergySpecialist).TheworkwasinitiatedundertheguidanceofRohitKhanna(PracticeManager,ESMAP)andcompletedunderGabrielaElizondoAzuela(PracticeManager,ESMAP),withoverallstrategicdirectionprovidedbyDemetriosPapathanasiou(GlobalDirector,EnergyandExtractivesGlobalPractice).A

teamfromtheconsultingcompanyMathematica,consistingofFaraz

Usmani,DuncanChaplin,PatriciaCosta,Sarah

Leser,andSaraBryk,collectedbackgroundmaterialandconductedupstreamresearch

forthiscasestudy.Theteamacknowledgestheimportantinputs,insightsandassistancereceivedfromJaninaFranco(SeniorEnergySpecialist),andInesPerez

Arroyo(EnergySpecialist)andWorldBankconsultantsStephaniePinnington,NicolasFichauxandKavitaRai.Editor:FayreMakeig.JOBSGENERATEDBYTHESECONDRURALELECTRIFICATIONPROJECTINPERUvAboutthisReportThisreportpresentsthe?ndingsandconclusionsofa

casestudyundertakenunderaprogramofanalyticalworkthatinvestigatestheimpactsoftheglobaltransitiontocleanenergyonthequantityandqualityofjobsinlow-andmiddle-incomecountries.Undertheprogram,entitled“EstimatingtheJobCreationPotentialoftheCleanEnergyTransition,”theWorldBank’sEnergySectorManagementAssistanceProgram(ESMAP)undertookmultiplestreamsofanalysis:??A

reviewoftheliteratureandcommonlyusedmethodologiesofinvestigationModelingofeconomywidejobimpactsofpoliciessupportingtheclean

energytransitioninselectedcountriesinSub-SaharanAfrica??Case

studies

of

the

e?ects

on

employment

of

selected

World

Bank

clean

energy

projectsDeepdivesintotheimpactonjobsofclosureofcoal-?redpowerplants;ofproductiveusesofelectricityassociatedwithminigridsinNigeria;andoftheRusumoFallsHydropowerProject.Buildingontheabove-mentionedsteamsofanalysis,theprogramhasalsoproduceda

high-levelreportsummarizingits?ndingsandconclusions“Jobsfora

LivablePlanet:JobCreationPotentialoftheCleanEnergyTransition”anda

discussionpapertosupportprojectdesign“TrackingJobsinProjectsFocusedonCleanEnergyandProductiveUsesofElectricity”,providingstrategiesfortrackingandenhancingjobcreationthatcanbeusedinthecleanenergyprojects.Thereportsdevelopedunderthisprogramtogetheraimtosupportlow-andmiddle-incomecountriesinreapinggreatersocioeconomicbene?tsfromtheenergytransitionbysupportingtheminincreasingthenumberandqualityoflocaljobsgeneratedwhileimplementingcleanenergyprojects.Realizingthebene?tsofthejobscreatedbycleanenergyinterventionswilldependone?ectiveplanningandpreparationintheearlystagesofprojectsandsustainedsupportduringtheirimplementation.Thereportstargetmultipleaudiences,frompolicymakerstodevelopmentpractitionersandacademics.Theyalsoaimtofamiliarizeenergyspecialistswiththee?ectsofenergyprojectsonjobsandgivethemtoolsthatenablethemtotakeaccountof—and,wherepossible,maximize—thesocioeconomicbene?tsofthecleanenergytransition.Thereportscanbefoundat/publications.viABOUTTHISREPORTAcronymsGoPGovernmentofPeruENAHOkWhMWhNGOO&MPVPeru’sNationalHouseholdSurveyonLivingConditionsandPovertykilowatt-hourmegawatt-hournongovernmentalorganizationoperationandmaintenancephotovoltaicsRE1RE2TAFirstRuralElectri?cationProjectSecondRuralElectri?cationProjecttechnicalassistanceUNALMLaMolinaNationalAgriculturalUniversityAllcurrencyisinUnitedStatesdollars(US$,USD),unlessotherwiseindicated.JOBSGENERATEDBYTHESECONDRURALELECTRIFICATIONPROJECTINPERUviiKeyFindingsTheSecondRuralElectri?cationProjectinPerucreateddirectjobsinruralelectri?cationandpromotedproductiveusesofelectricity.Whileithada

positiveimpactonincomeandjobquality,genderdiversityintheworkforcewaslimited,andthenete?ectonemploymentduetoelectri?cationwasmixed,withsomejobsbeingcreatedandothersdisplaced.Key?ndingsfromthecasestudywere:Direct

Jobs:

Directemploymentcovereddesign,management,construction,andoperationsandmaintenance(O&M)roles.A

totalof57person-yearsofdirectemploymentwerereported,with31beingnewlycreated

positionsprimarilyinNGOsandtherestbeingexistingrolesinelectricitydistributioncompanies.Thesenewjobswouldnothaveexistedwithouttheproject.Local

Workforce:

AllworkerswerefromPeru,withskilledworkersoftenhiredfromlargercitieslikeLima.Mostjobsweretemporarybutincludedformalcontracts.Gender

Diversity:

Theprojectteamswerepredominantlymale,withveryfewfemaleworkers.FemalesemployedbyNGOswereoftenintheroleofpromoters,collectingdata,andprovidingmarketingandtrainingsupport.Operations

and

Maintenance

(O&M):

O&Mlikelyrequiredadditionalsta?.Anestimated59person-yearsofdirectemploymentwereallocatedforoperationsandmaintenance,bringingthetotalto116person-years.Indirect

Jobs:

IndirectjobsresultedfromthedemandformaterialsinconstructionandO&M.MostmaterialsweresourcedfromdomesticcompaniesinmajorPeruviancities.Theestimateof154indirectjobswasderivedfromemploymentdatafromsimilarprojectsinBrazil.Induced

Jobs:

Interviewswithsmallbusinessesconnectedtothegridshowedmixedemploymente?ectsduetoelectri?cation.Whilesomebusinessesexpandedtheirservices,othersautomatedprocesses,leadingtojobdisplacement.Overall,thenete?ectonemploymentwasunclear,butimprovementsinincomeandjobqualitywereobserved.Income

Improvement:

Theprojectmayhaveincreasedaverageincomes,drivenbyimprovementsinjobqualityandwages.Measuringwagesalongsideemploymentnumberscouldprovidea

morecomprehensiveunderstandingofprojectbene?ts.viiiKEYFINDINGSONEINTRODUCTIONThiscasestudyseekstoshedlightontheemploymentoutcomesassociatedwiththeWorldBank’sinvestmentsinruralelectri?cationinPeruaspartoftheSecondRuralElectri?cationProject(RE2),whichwasapprovedinApril2011andclosedinAugust2017.Peruimplementedbroadenergysectorreformsinthe1990sthataimedtoestablishprivateinvestorsastheprincipalactorsinthepowersectorandlimittheroleofthepublicsectortoregulationandsupervision.Followingthereforms,powershortagesanddistributionlossesdeclinedandelectricitytari?sstabilized(WorldBank2006).Yet,whilethesuccessofthesereformswasprimarilyconcentratedinurbanareas,starkdisparitiesbetweenurbanandruralelectri?cationremained.In2005,forinstance,electricitycoverageinurbanareaswasnearlyuniversal.Bycontrast,lessthan25percentoftheruralpopulationhadelectricityaccess(ESMAP2021),partlyduetothedistancetoruralcommunitiesandtheirisolation,whichresultinhighinstallation,operation,andmaintenancecostsforruralinfrastructure(WorldBank2006).Consideringtheabove,theGovernmentofPeru(GoP)madeequitableelectricityaccess—especiallythroughinvestmentstocloseurban-ruralinfrastructuregaps—apolicypriorityintheearly2000s.Inparticular,aspartofthe2004NationalPlanfor

RuralElectri?cation(PNER),theGoPoutlineditsgoalofprovidingelectricityaccessto75percentofthecountry’sruralpopulationby2013,morethantriplingtherateofruralcoveragein2004.The2013PNERexpandedthisgoalto95percentruralelectri?cationby2016(IRENA2014).Insupportofthesegoals,between2006and2017,theWorldBankcontributedtotwoconsecutiveruralelectri?cationprojectsinPeru.The?rstproject(RE1),whichwasapprovedinMarch

2006andclosedinJune2013,aimed

toincreaseelectricityaccessinruralareasofPeru

throughthefollowingthreeactivities:1.

Investinginsubprojectstosupplyelectricitytounservedruralhouseholds,businesses,andpublicfacilitiesusingconventionalgridextensionandrenewableenergysources;2.

Demonstratingkeyelementsofa

ruralelectricityprovisionframework,whichwouldpromoteinvestmentsbyprivateandpublicsectorelectricityproviders,andnational,regional,andlocalgovernments;and3.

Implementinga

pilotprogramtopromoteproductiveusesofelectricity,resultinginincreasedincomegenerationopportunitiesinruralareas(WorldBank2006).1RE2

broadlysharedRE1’sgoalsandsoughttobuildonitsachievementsbyoperatingin“morechallengingconditions,providingelectricityserviceinlocalitiesthatareincreasinglydistantfromthegridwithmoredispersedpopulations”(WorldBank2011).2

Speci?cally,RE2

hadthreecomponents:1.

Rural

electri?cation,

whichsupportedinvestmentsinruralelectri?cationsubprojectstoincreaseelectricitycoveragethroughgridexpansionortheinstallationofindividualsolarphotovoltaics(PV)systems;2.

Technical

assistance

(TA)

for

rural

electri?cation

topromoteproductiveusesofelectricity,buildthecapacityofkeystakeholders(includingelectricitydistributioncompanies),andimprovetheregulatoryenvironmentforruralelectri?cation;and3.

Project

management

toevaluate,supervise,manage,andadministersubprojectinvestmentsandTA.JOBSGENERATEDBYTHESECONDRURALELECTRIFICATIONPROJECTINPERU1ThecasestudythatfollowsfocusesontheWorldBank–supportedruralelectri?cationinvestmentsinPeru

aspartofComponents1

and2

ofRE2.3

Insodoing,ithighlights—throughinterviewswithtargetedstakeholders—howenhancementsinenergyinfrastructurethatimproveelectricityaccessarerelated

toformalandinformalemploymentoutcomesinPeru.Section2

describesRE1

andRE2

inmoredetail.Section3describesthelabormarketconditionsintheareastargetedbyRE2.Section4

providesan

overviewoftheobjectives,methodology,anddatacollectionapproach.Section5summarizesthe?ndingsfroma

seriesofkeyinformantinterviewsconductedwiththeRE2

stakeholdersandbene?ciaries.Section6

coverssustainabilityandsection7

coversthebarriersandenablers.Thelastsectionsummarizestheresultsofthiscasestudyandincludesa

theoryofchange.Endnotes1.?AdditionalinformationaboutRE1

isavailableat:/en/projects-operations/project-detail/P090116.2.?AdditionalinformationaboutRE2

isavailableat:/en/projects-operations/project-detail/P117864.3.?ThecasestudyfocusesonlyonthegridexpansionpartofComponent1

giventhattheinstallationofthesolarPVsystemswasnotdesignedtoallowforproductiveusesofelectricity.2INTRODUCTIONTWOSUMMARY

OFRELEVANT

WORLDBANK

ENERGYINTERVENTIONSRuralelectri?cationinPeru

hasfacedseveralchallenges.Providingelectricityislesspro?tableinruralthanurbanareasbecause(1)theratioofcustomerstoequipment(linesandtransformers)islower,(2)ruralcustomerstendtoconsumelesselectricity,and(3)ruralcustomersareoftenprovidedsubsidizedrates.Thisresultsindistributioncompaniesallocatinglittlefundingtomeetingtheo?-griddemand,andtheresultingscarcityofreliableelectricitylimitsruraldevelopment(WorldBank2017).Furthermore,ruralareasoftenlackthenecessaryprerequisitestouseelectricityproductivelyande?ectively.Theseprerequisitesincludefactorssuchasinformation,accesstotechnology,?nancialresources,anda

su?cientdemandforthegoodstheyproduce.TheactivitiessupportedunderRE1

andRE2

soughttoaddresssomeoftheseconstraints.Overviewof

RE1RE1primarilyaimedto“increaseaccesstoe?cientandsustainableelectricityservicesinruralareasofPeru”(WorldBank2006).1

Asshownintable1,progressonthisobjectivewasmeasuredbasedon(1)thenumberofnewelectricityconnections(withatargetofprovidingelectricityservicestoapproximately160,000households,businesses,andpublicfacilities)and(2)theincreaseinmegawatt-hours(MWh)ofelectricityconsumedforproductiveusesintheareastargetedbytheintervention(withatargetof18,000MWhinthe?rst?veyearsofoperation).BytheendofRE1,infrastructureforapproximately105,000gridconnectionshadbeeninstalled.Thiswas34percentbelowtheoriginaltargetandwasprimarilyduetoaveragecostsTABLE

1SelectedIndicators,

Targets,

and

Achievement

for

theKeyProjectDevelopmentObjectiveof

RE1OBJECTIVEINDICATORTARGETACHIEVEMENTIncreaseaccesstoe?cient

NumberofnewelectricityandsustainableelectricityinruralareasofPeruConnect160,000ruralhouse-holds,businesses,andpublicfacilities,suchasschoolsandhealthclinics(servingabout800,000people)?

Infrastructureinstalledfor105,000gridconnections(mostlyhouseholds),representingabout450,000people?

Approximately2,900schools,clinics,andcommunitycentersalsoincludedconnectionsIncreaseinmegawatt-hoursIncrease

electricityconsumption

Ruralfamilies,producers,and(MWh)ofelectricityconsumed

by18,000MWhforproductiveusesinthebusinessesadoptedelectricity-poweredequipment,resultinginanoverallincreaseinelectricityusedto19,107MWhtargetareasSource:WorldBank2017.JOBSGENERATEDBYTHESECONDRURALELECTRIFICATIONPROJECTINPERU5perconnectionbeingconsiderablyhigherthanthecostsestimatedpriortoimplementationduetounforeseenexogeneousfactors(WorldBank2017).2

Widespreadadoptionofelectricity-poweredequipment,however,resultedinanoverallincreaseinelectricityusedto19,107MWh,exceedingthetargetinthe?rst?veyearsofoperation.FollowingthecompletionofRE1,theGoPevaluatedtheresultsandsocioeconomicimpactsofthePilotProgramforPromotingProductiveUsesofElectricity;itpaidparticularfocustotheimpactsonfamily-levelproductiveunits(unidades

productivasfamiliares)

andotheractorsinvolvedintheintervention(namely,electricitydistribution?rms)(ConsorcioAsociaciónBené?caPrisma,InstitutoCuánto,andMacroconsult2016).Speci?cally,thestated

objectiveofthisevaluationofRE1’sproductiveusecomponentwastoanalyzepotentialquantitativeandqualitativechangesinthelivingconditionsoftheprogram’sbene?ciaryhouseholds.Quantitatively,thisstudyestimatedimpactsusinga

simplepre-postcomparisongroupdesign.Speci?cally,itcomparedtheoutcomesfora

sampleofbene?ciariessurveyedin2016withthoseofa

comparisongroupinthesamedistrictsa

decadeearlier(2007),usinginformationfromotherdatabases(e.g.,Peru’sNationalHouseholdSurveyonLivingConditionsandPoverty[ENAHO])butwithoutanyadjustmentsforfactorsthatmayhavechangedovertimeordi?eredbetweenthebene?ciariesandthecomparison

group.3

Thestudyfoundthattherateofemploymentwas88.4percentfortheprojectbene?ciariesaftertheintervention(in2016)but91percentforthecomparison

group(peopleaged25andaboveinthe

samedistrictsin2007),suggestingthatelectrificationdidnotincreasetheoverallemployment.4

Thisestimateimplicitlycoverstheimpactsonprojectbeneficiaries(whoseself-employmentratescouldhavebeenaffected)aswellason

their

employees(sinceemployeeswereincludedinboththetreatmentandcomparison

groups).Whiletheestimatedimpactonemploymentrateswasnotpositive,ConsorcioAsociaciónBené?caPrisma,InstitutoCuánto,andMacroconsult(2016)dididentifyrelated

patternssuggestingpositiveimpactsonotherlabormarketoutcomes.Inparticular,thestudyfoundthattheshareofpeoplewithindependentemploymentwashigherforthebene?ciariesthanthecomparison

group(64percentcompared

with56percent).Italsofounda

lowerproportionofbene?ciariesthanthecomparison

groupinvolvedinunpaidfamilywork(19percentcompared

to28percent).Additionally,theresultsalsosuggestpotentialbene?tsofelectri?cationforearningsandelectricityuse.Thebene?ciarieswerefoundtohave63percenthigheraveragemonthlyincomepercapitathantheindividualsinthecomparison

groupafteradjustingforinflation.5

ElectricityconsumptionalsoincreasedsignificantlyforbeneficiariesfollowingRE1’simplementation.Itincreasedby214percentand329percentforhouseholdsandbusinesses,respectively(ConsorcioAsociaciónBenéficaPrisma,InstitutoCuánto,andMacroconsult2016,65).6

Insum,whileemploymentwaslowerforthebene?ciariesthanforthecomparison

group,thebene?ciariesdidhavehigheraverageincome.6SUMMARYOFRELEVANTWORLDBANKENERGYINTERVENTIONSBOX

1LESSONS

LEARNEDFROM

RE1The

following

lessons

were

learned

from

RE1:?Technicalassistance(tosupportthedevelopmentofregulatory/institutionalframeworksforruralelectri?cationandcapacitybuildingforelectricitydistributioncompanies)andinvestmentinelectricity-poweredequipmentareessentialtopromoteproductiveusesofelectricityandmakeitsustainable.??Greater?exibilityfromtheGovernmentofPeru

(e.g.,regularlyupdatedtari?regimes)mayberequiredtofurtherfacilitateruralelectri?cationandaccommodatehigherdistributioncostsinnewlyelectri?edareas.Actionsbyelectricitydistributioncompaniestocatertoruralcustomers’uniqueneedsandconstraintswouldalsosupporte?ortstorapidlyexpandelectricityaccess.Source:ProjectPerformanceAssessmentReportpreparedbytheWorldBankIndependentEvaluationGroup(WorldBank2017)Overviewof

RE2RE2

beganin2011andcoveredfourregionsofPeru

notcoveredbyRE1:Amazonas,Ayacucho,Moquegua,andTacna.Itaimed

tobuildontheexperiencesofandtheprogressmadeduringRE1

bycontinuingtoincreaseelectricitycoverageinruralareas,resultinginreducedinequalityandimproveddevelopmentandeconomicgrowthoutcomes.RE2

hadthreecomponents:1.

Rural

electri?cation:

Thiscomponentsupportedinvestmentsinruralelectri?cationsubprojectstoincreaseelectricitycoveragefor42,500households,smallbusinesses,andcommunityfacilities.Speci?cally,the?nancedsubprojectsreliedonbothgridextension(throughtheconstructionofnewlow-andmedium-voltagetransmissionlinesand

substations)andtheinstallationofindividualsolarPVsystems(comprisinga

mountablemodule,a

controller,a

battery,anda

setof?uorescentlamps)toachievethistarget.JOBSGENERATEDBYTHESECONDRURALELECTRIFICATIONPROJECTINPERU72.

Technical

assistance

for

rural

electri?cation:

Thiscomponentfocusedon(1)promotingproductiveusesofelectricity;(2)assessingnationalrenewableenergyresources(through,forinstance,supportingfeasibilitystudies);(3)providingassistancetoelectricitydistributioncompaniesandotherstakeholderstoe?ectivelyincreaseaccesstoelectricityservicesthroughPVand/orgridextensionprojects;and(4)improvingtheregulationandmonitoringofruralelectri?cation.Inparticular,nongovernmentalorganizations(NGOs)responsibleforimplementingkeyelementsoftheTAcomponentrelatedtoproductiveusesofelectricityservedasintermediariesbetweenpotentialproductiveusersofelectricityandelectricitydistributioncompanies,inturnpromotingelectricityuseinproductiveprocessesbytheformerwiththegoalofincreasingelectricityconsumptionbythelatter’sclients.Speci?cally,NGOswould?rstworkcloselywithelectricitydistributioncompaniestoidentifypotentialnewareasforexpandedelectricityaccess.Theywouldthenraiseawarenessamongandbuildtheskillsoftargetedlocalbusinessestofacilitateelectricityuseforsupportingbusinessactivities(inc