The reduction and rationalization of subsidies and incentives for energy supply and for energy efficiency is a complex and often controversial process. Approximately 85% of those people live in rural areas, mainly in Sub-Saharan Africa and South Asia. The low level of electrification is due to a number of factors including poverty, a highly-dispersed rural population, a low degree of industrialization, a historically inefficient energy sector, and difficulties accessing capital to finance the development of modern energy sources (IEA, 2009). Biomass fuels such as firewood, charcoal, straw, agricultural residues, and animal dung supply 95% of all energy consumed in the Sub-Saharan African region (RISO, 2008). Most of these fuels are not traded commercially in the formal sector of the economy, rather they are gathered as needed by household members or, particularly in the case of charcoal, may be sold via the informal sector.