The design of this framework is perhaps the key challenge to countries in the region. Another important challenge is how to meet the electricity needs of rural consumers in a competitive market. Up to now, rural electrification has been carried out in close connection with central electricity supply. The study also looks at the environmental implications of electricity generation. Policy makers in Asian countries can choose from a range of options in the electricity sector to reduce the costs of maintaining a desired state of the environment.
Pricing is a key issue.
Tariffs should be based on actual costs, including the cost of environmental safeguards, the study says.