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The report examines a shift in Tanzania's rural electrification strategy from a centralized utility model (TANESCO) to locally managed cooperatives. It focuses on the Urambo Electric Consumers Co-operative Society (UECCO), which took over a diesel-powered system in 1993. Key findings indicate that while local management improved service reliability and financial performance compared to TANESCO's isolated branches, the cooperative struggled with high fuel costs, inadequate bookkeeping, and the need for high tariffs to ensure sustainability. The report also evaluates the use of Compact Fluorescent Lamps (CFLs) and photovoltaic (PV) systems, concluding that CFLs and fluorescent tubes are more cost-effective than incandescent bulbs, while individual PV systems are generally more expensive than centralized diesel supply unless the latter is severely under-utilized.