Energy poverty is a concept that has gained significance quite recently. Its significance has been prompted by the realization that without sustainable modern energy alternatives for the rural poor, prospects for rural transformation remains low. The recognition of modern energy as one of the missing link in rural transformation comes amid the growing concern about the negative effects of relying on traditional energy services and the increasing forecasts that most developing countries are likely to miss their MDG targets by 2015. Drawing on the Modernization and the Sustainable Development Approach, this study concluded that improving the quantity and quality of energy services consumed by the rural poor can counteract rural underdevelopment and enhance rural social and economic transformation in Dewedzo. The study confirmed that energy poor households are prone to various social, economic and environmental detriments such as poor health, hunger, malnutrition, poor education and missed socio economic opportunities. By addressing rural people‟s energy needs, more nexus can be injected into rural productivity and the economic social outputs of this process can in turn increase the pace at which MDGs can be achieved.