The aim of this degree project is to propose an alternative for electrification in two settlements on the outskirts of the village Edumafa in the south of Ghana. The field studies took place during eight weeks in February and March 2004. The objectives have been to investigate: What is the most suitable electricity alternative according to the needs of the village settlements? Extended power grid, solar cells or wind power plants? Which are the administrative and political difficulties to get this? A great deal of the field studies has been devoted to find out the rules and regulations that apply for electrification in Ghana. Therefore repeated visits to different authorities were done, especially to the Ministry of Energy in Accra. Several interviews were done in Edumafa to find out their needs regarding electrification and future energy services. The two main purposes were lighting and a possibility to freeze their fish catches. Because there are no maps to obtain over the settlements or the village, some sketches were done. These sketches were used to get an idea about the design of the grid. Three different scenarios were made to exemplify how the electrification may be done. In 1990 the Government in Ghana initiated a national plan, National Electrification Scheme (NES), which implements to extend electricity to all villages in the country with a population above 500, by the year 2020. One part of that plan is Self-Help Electrification Programme (SHEP). The implication of SHEP is in brief: if the settlements buy the LV-poles themselves, the government will finance transformers and the wiring up to and in the village. By joining the SHEP a village can get electricity faster. The administrative or political difficulties for the settlements to be connected to the grid are that their situation falls outside the existing regulations. Even if they belong to Edumafa Community and are staying on Edumafa land, they are not treated like residents though they have lived there for 50 years. They are also represented in the Edumafa Community Council. If they would have been considered as residents of Edumafa there should be an extension of the grid and not a new connection. However, an extension will only be made if new houses are built in the village. New connections will only be made in settlements with a population above 500, which is not the case in these settlements. If the settlements have been situated more than 20 km from an existing 33/11 kV line, they have had the possibility to rent Solar Home Systems from the Government, at a subsidized fee. In this case, it is not an option since the central town Edumafa is connected to the grid. However they might get electricity by a combination of SHEP and the original plan of NES. This means that the Government would pay the grid up to and including the transformer, if there is a new connection. The settlements would then pay for the whole LV-grid, including the poles and wires. The ECG can choose to install the grid like a new connection or an extension. These two options would cost 1007 USD or 1191 USD per household respectively because of a longer distance from the extension point. The second scenario is to use PV technology. With an energy use of 0.202 kWh per day and household, a 100 Wp PV module is required to cover the energy demand during the month with the lowest solar insolation. A Solar Home System of that size would cost 2317 USD per household. In the third scenario small wind power plants are used to charge batteries in the same way as with PV modules. With the same energy use as in the PV scenario the cost would be 1975 USD per household. However, the cost for foundations and mounting are not included. With the two latter alternatives it is not possible to supply any freezers with electricity. One solution is to build a cold store in the central town, which already has access to the grid. All costs are capital costs calculated over 25 years. According to the cost calculations, the power grid is the cheapest alternative for the settlements; wind power and PV systems are more expensive. However, first of all the Government has to decide whether the settlements satisfy the criteria to get connected. Which alternative the settlements will choose depends on their demand for energy services and on how much they are willing or have the economical conditions to pay.