Energy has a key role in development – it is vital for all forms of activity, from households through to industries and infrastructure. While its importance for economic development at the national and regional level is widely recognised, the links to poverty reduction at local and individual levels are not so well understood. As a result, energy provision is often a late addition to aid programmes, if included at all.
At the individual or household level, there are important links between activities in the household, with cottage industry and microenterprise development, and with socially productive services such as health and education. For example, an old broken down bus has been converted into a general shop in a remote rural area of South Africa, with solar electricity running lighting and a stereo and bottled gas allowing non-electric ironing.