About Rural Electrification Fund

The sole mission of the Rural Electrification Agency (REA) is to provide access to reliable electric power supply for rural dwellers irrespective of where they live and what they do, in a way that would allow for reasonable return on investment through appropriate tariff that is economically responsive and supportive of the average rural customer. To achieve this, the Rural Electrification Fund [REF] was established by virtue of the section 88 sub-section II of the Electric Power Sector Reform Act of 2005 to provide support for the development of the on and off grid sectors for the power/energy sector to thrive, by:

1. Achieving more equitable regional access to electricity
2. Maximizing the economic, social and environmental benefits of rural electrification subsidies
3. Promoting expansion of the grid and the development of off-grid electrification
4. Stimulating innovative approaches to rural electrification, provided that no part of the REF shall be used as subsidies for consumption.

Funds are used to promote cost-effective expansion of electricity access in un-electrified rural areas, using renewable off-grid and on-grid electrification solutions through partial one-off capital subsidies and technical assistance to ensure access to reliable and affordable electricity, with the ultimate goal of improving the living standard, socio-economic and environmental conditions of rural dwellers.