The Energy Access Dividend in Honduras and Haiti
Summary — This report quantifies and monetizes the benefits generated through accelerated electricity access in Honduras and Haiti. It builds on an existing framework for measuring the dividends of electrification and applies it for the first time in Latin America.
Key Findings
- Haiti's rate of electrification was just 39 percent in 2016, leaving over 6.6 million people without electricity access.
- Honduras’s rate of electrification was 82 percent in 2016, leaving 1 million people without access to electricity.
- The aggregate EAD for Haiti over the period of 2016-2050 amounts to $423 million USD.
- The present value of the extended EAD for universal tier 5 electrification in Honduras is $267 million USD.
Full Description
This report attempts to quantify and monetize the benefits generated through accelerated electricity access in Honduras and Haiti. It builds on an existing framework for measuring the dividends of electrification, which was developed to estimate the potential benefits of increasing the pace of electrification through case studies in Kenya, Ethiopia, and Bangladesh. The report builds on this methodology and applies it for the first time in Latin America, a region that is doing comparatively well in electrifying households, but where millions still lack access and reliability remains a major challenge. The concept of the Energy Access Dividend (EAD) is to quantify the electrification benefits forgone over a country’s business-as-usual electrification transition. Designed as a tool for policy planning, the dividends presented in this report for Haiti and Honduras are intended to highlight the role of electrification in economic development and offer policymakers a framework for including electrification trade-offs in policy planning and design.