EN E RGY POV E R T Y & T H E SO LU T I ON The term to reflects lack of electricity in rural areas exacerbate the poverty of the developing countries. In Malaysia, 3.8% of the population lives below the poverty line and most of them are settled in rural areas. The electricity coverage in poor states is about 79% in comparison with 99.62% in Peninsular Malaysia. The renewable energy sources can be considered the best alternative to reduce the energy poverty of the rural areas where the grid extension through a difficult terrain and thick jungle is not possible or economic. The potential for applying renewable sources – solar, wind and hydropower – for rural electrification is investigated, especially in the poorest States. The Malaysian policies of rural electrification by applying renewable sources are explained. It is found that in Malaysia, with a maximum solar radiation, the potential for applying solar energy for electrification is too costly comparing to the outcome. However, the potential for stand-alone micro-hydropower in those areas is more viable and deliverable.
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