Abstract: The article expounds following points: the current situation of rural electrification in China, the function of rural electrification in the construction of agricultural modernization, the major contradictions existing in the supply of electricity in the countryside, the importance of agriculture and agricultural mechanization organizations in the development of rural electrificaton, the inevitableness and the urgency of strengthening the research of rural electricity supply problem.At the present time, the most important thing is to exploit and supply the electricity and energy to those regions, such as high mountainous districts,border animal husbandry regions, those regions without electricity supply and the mediumor small-scale electric net hard to reach, and those frequent stopping electricity supply regions.From the social and economic benifits to be gotten by the research project of the exploitation of small hydro-electric resources, it was proved that according to the local conditions to use different smallscale rural energy to generate electricity and to design the complete set of electricity supplying facilities will be of great importance and with bright prospect.