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From least-cost plans to implementable electrification: an iterative convergence procedure for electrification planning, regulation, and finance

S. Díaz-Pastor, I.J. Pérez-Arriaga

XXI Congreso de la Asociación Española para la Economía Energética, Pamplona (Spain). 27-29 May 2026


Summary:

Least cost electrification plans are necessary, but they are not sufficient to achieve universal access. The main challenge is not only where and when to extend service, but how to do so under affordability constraints, weak revenue bases, and limited financing capacity. This paper develops an iterative convergence procedure that links three interdependent decisions: the rollout of the techno-economic plan, the regulatory and business model, and the financing architecture. It introduces an information exchange matrix to define the minimum coordination required across these dimensions and institutions, with a convergence algorithm to identify whether emerging feasibility problems can be resolved within the existing plan or whether they force a return to the planning stage. Zambia based examples illustrate both dynamics. The result is a structured method to transform electrification plans into implementable and financeable programs.


Spanish layman's summary:

La electrificación universal no depende solo de planes de mínimo coste. Exige un diseño regulatorio y financiero que haga viable su ejecución. Este artículo propone un procedimiento iterativo para alinear planificación, regulación y financiación.


English layman's summary:

Universal electrification depends on more than least-cost plans. It requires a regulatory and financing design that makes implementation viable. This paper proposes an iterative procedure to align planning, regulation, and finance.


Keywords: electricity access; electrification planning; distribution regulation; infrastructure finance; universal energy access


Publication date: 27-May-2026.


Citation:
S. Díaz-Pastor, I.J. Pérez-Arriaga, "From least-cost plans to implementable electrification: an iterative convergence procedure for electrification planning, regulation, and finance", presented at XXI Congreso de la Asociación Española para la Economía Energética, Pamplona, Spain, 27-29 May 2026

    Research topics:
  • Universal energy access and electrification
  • Planning and operation of networks and DER
  • Regulation of energy network infrastructures: distribution
  • Renewable energy integration
  • Isolated systems: Islands, microgrids, off-grid
  • Analysis of sustainable energy policies
  • Institutional and Political Energy Economics
  • Long-term energy scenarios
  • Robust energy planning and policy design under deep uncertainty
  • New business models in the power sector
  • Energy Justice
  • Energy and transport poverty: indicators, policies, and regulation
  • Retail prices and tariff design
  • Finance and sustainability
  • Social inclusion and vulnerability
  • Development of advanced ESG and socioeconomic metrics based on composite indicators
  • Impact assessment of economic and public policies
    Research groups:
  • Instituto de Investigación Tecnológica (IIT)
    ODS:
  • Goal 7: Affordable and clean energy
  • Goal 1: End poverty
  • Goal 3: Health and well-being
  • Goal 8: Decent work and economic growth
  • Goal 9: Industry, innovation and infrastructure
  • Goal 10: Reducing inequalities
  • Goal 11: Sustainable cities and communities
  • Goal 13: Climate action
  • Goal 17: Partnerships for the Goals

IIT-26-101C

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