In developing countries, providing all citizens an access to modern forms of energy is among the central energy policy objectives, as the linkages between modern energy services and human development are widely recognized. This paper presents in a scenario analysis of rural energy consumption, how energy services in different sectors of a village economy contribute to the achievement of the UNDP Millennium Development Goals. In a rural village in Lao People’s Democratic Republic, household energy demand and energy uses were surveyed immediately prior to the electrification of the village. Based on the situation preceding electrification of the village, the development of village electrification was studied by simulating the village energy system, accounting for all village energy uses but transportation. To study the potential development of electricity demand in the village, three scenarios were constructed using the LEAP model: “residential demand”, “income generation” and “public services”. Energy demand in each scenario was analyzed with reference to the Millennium Development Goals.