Recently, environmental degradation has emerged as a serious problem that further complicates the major energy issues that arose in the 1970s. This article examines electricity related environmental issues in the developing countries, that will increasingly shape the future role of the power engineering profession. The growth related power needs of the Third World and their financial implications, the potential for better energy management, the financial mechanisms and policies that can improve the performance of developing countries power utilities, and the treatment of environmental impacts will be explored.