Electricity Infrastructure in Low- and Middle-Income Countries: A Literature Review

This review synthesises the growing body of literature on the impacts of electricity infrastructure, covering access, reliability, financial sustainability, appliance adoption, and minigrid technologies. It outlines key takeaways for policy from research on electricity infrastructure, and identifies evidence gaps and policy-relevant research directions to inform future electrification strategies in low- and middle-income Countries. Expanding electricity access is a critical development priority, with initiatives like Mission 300 Africa aiming to connect 300 million people by 2030 and the Rajiv Gandhi Grameen Vidyutikaran Yojana aiming to attain 100% rural electrification in India. Despite substantial investments in infrastructure, electrification efforts face persistent challenges, including low cost recovery, unreliable and poor quality electricity supply, and uncertain demand patterns. While electrification has shown potential for substantial socioeconomic gains, recent studies reveal variations in outcomes; benefits from electricity vary with complementary investments, political economy factors, the quantity and quality of electricity supplied and the time horizon over which impacts are measured. Research also highlights the role of utility reforms and technologies in improving electricity reliability. Utility cost recovery is intertwined with service quality and reliability. Additionally, mini-grids and decentralised generation sources, such as solar and hydropower, are emerging as viable options in remote locations, though their long-term viability remains uncertain, as populations may prefer electricity from the grid when available. As countries pursue ambitious electrification goals, leveraging insights from the existing literature will be essential to design effective, context-specific policies that ensure electricity infrastructure delivers inclusive and sustainable development outcomes.