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Managing an Electricity Shortfall : A Guide for Policy Makers

World Bank
Fonte: World Bank Publicador: World Bank
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55.88%
Economic growth in Central America has increased rapidly over the past 20 years. Currently, the gross domestic product (GDP) per capita for the six Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama averages approximately US$3,600. However, masked behind this average figure is a Sub region of 40 million people with a wide variety of income, where more than half of the population lives in poverty. Energy in general and electricity specifically are critical for economic development. Electricity is needed to power the machinery that supports income-generating opportunities. Capital (both domestic and foreign) is attracted to countries that are able to offer an affordable, reliable source of electricity for businesses. Although the individual electricity markets of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama are not large, together the six countries collectively generated nearly 38 Terawatt-hours (TWh) of power, equivalent to around 70 percent of the annual electricity supply of a medium-sized country in Latin America. The World Bank has undertaken a series of studies to better understand the energy challenges facing these six Central American countries that are to be joined by Sistema de Interconexion Electrica para America Central (SIEPAC) and to identify actions to promote the sound development of the sector. These studies have been prepared by a team of policy experts...

Connection Charges and Electricity Access in Sub-Saharan Africa

Golumbeanu, Raluca; Barnes, Douglas
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
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55.88%
Sub-Saharan Africa trails other regions in providing access to electricity for poor urban and rural residents. This poor performance can be linked to various factors, including political interference in utility policy, higher investment costs and lower profitability of extending service to rural areas. But a major obstacle to wider access is the high charges consumers must pay to connect to the electricity network. The connection charges in Sub-Saharan Africa are among the highest in the world, which has resulted in low rates of electrification in many countries. This paper reviews ways to improve electrification rates by addressing the issue of high connection charges. Essential to the success of such efforts is concurrent political commitment to identify, examine, and implement various low-cost electrification approaches and financing solutions as part of a broad plan to improve access. Electricity companies can lower their connection-related costs, and thus consumer charges, by using a variety of low-cost technologies and materials in distribution networks and household connections; making bulk purchases of materials; and adjusting technical standards to reflect the lower loads of households that use a minimum amount of electricity. Strategies for lowering connection charges may also include spreading charges over a reasonable period...

Changing Patterns of Household Expenditures on Energy : A Case Study of Indonesia and Pakistan

Bacon, Robert; Bhattacharya, Soma; Kojima, Masami
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
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55.88%
This paper applies a decomposition technique using a log mean Divisia index to two sets of household surveys taken several years apart in Indonesia and Pakistan. The methodology enables separation of changes in expenditure on different types of energy into changes in prices, quantities, the share of households using the given form of energy, and total household income. The technique was applied to electricity, liquefied petroleum gas (LPG), kerosene, and gasoline in Indonesia, and to natural gas, kerosene, LPG, purchased firewood, collected firewood, dung cake, and other forms of biomass in Pakistan. The methods of analysis presented in this paper could be extended to other commodities or to changes in energy use patterns over longer periods of time, where suitable household expenditure surveys are available. In particular, when household surveys covering the period of high oil prices become available, the analysis of changing household patterns of fuel use will be valuable. The availability of evidence on the use of energy by various household groups will be important for considerations of providing targeted support to low-income households at times of unexpected shocks to energy prices.

Pakistan : Household Use of Commercial Energy

Kojima, Masami
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
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55.93%
This study aimed to examine the impact of changing availability of different energy sources and their price levels on household energy choice, consumption, and expenditures. Knowledge of household expenditures and energy consumption patterns is an essential building block for further work on possible policies in the energy sector and associated poverty and social impact analysis. To this end, the four most recent household expenditure surveys-conducted in 1994, 1997, 1999, and 2001-were analyzed in detail. The survey periods included those with low fuel prices (1999) and a time of rising world oil prices (2001). No household expenditure surveys are available from the last two years, when the increase in fuel prices has far outstripped general inflation. Nevertheless, between 1994 and 2001, prices of electricity, natural gas, kerosene, and liquefied petroleum gas (LPG) rose more rapidly than the consumer price index (CPI), potentially offering insights into how households might react to, and manage, sharply rising energy prices. The household survey analysis was supplemented by focus group discussions and individual interviews conducted in 2004 and 2005. Participants were asked questions about reasons for energy choice...

Maximizing the Productive Uses of Electricity to Increase the Impact of Rural Electrification Programs : An Operational Methodology

de Gouvello, Christophe; Durix, Laurent
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
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65.85%
Rural electrification programs are generally motivated by the effective and lasting impacts that they are expected to generate in the field. While there may be some natural trickle down effect from the massive investments required to reach high rates of rural electrification, spontaneous positive effects on social and economic development are generally limited by a number of local bottlenecks. Two of the most important deterrents to the productive uses of electricity are the lack of technical knowledge and skills of potential users and the financial means to acquire the relevant equipment. This paper argues that to be successful, rural electrification programs should target direct impact on livelihoods and revenue generation beyond the provision of connections and kilowatt-hours by implementing electricity projects that affect livelihoods and generate new revenues.

Integration of Electricity Networks in the Arab World : Regional Market Structure and Design

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
Relevância na Pesquisa
65.89%
The Arab countries have enjoyed sustained economic growth in recent years, and the high economic growth has triggered a rapid increase in energy demand, particularly for electricity. Besides enabling energy imports, interconnected power networks impart a series of additional benefits such as improved system reliability, reduced reserve margins, reactive power support, and energy exchanges that take advantage of daily and seasonal demand diversity and disparities in marginal production costs. As a result, a world-class electricity supply system can be achieved with much lower capital expenditures and ongoing expenses than will otherwise be attainable on an individual-country basis. The regional power interconnection of the Gulf Cooperation Council (GCC), allows electricity exchange among its six member states: Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab Emirates (UAE), and Oman under an agreement signed in 2009. The interconnection is targeted at sharing capacity reserve and improving supply reliability...

Institutional Arrangements for the Promotion of Regional Integration of Electricity Markets : International Experience

Oseni, Musiliu O.; Pollitt, Michael G.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
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55.88%
This paper focuses on the institutional arrangements needed for facilitating regional electricity cooperation. The paper begins by discussing the theory of international trade cooperation in electricity, with a view to discussing what preconditions might be important in facilitating wide area trading across national borders. It then discusses two sets of case studies. The first set focuses on three regional developing country power pools -- the Southern African Power Pool, the West African Power Pool, and the Central American Power Market. The second set focuses on three regional power pools in more developed countries -- one in the United States, the Single Electricity Market in Ireland, and the South East Europe market. These cases highlight the potential and difficulty of having cross-jurisdictional power pools. In the light of the theory and evidence presented, key lessons are drawn in the areas of preconditions for trading, necessary institutional arrangements, practicalities of timetabling, reasons to be hopeful about future prospects...

How Much Could South Asia Benefit from Regional Electricity Cooperation and Trade?

Timilsina, Govinda R.; Toman, Michael; Karacsonyi, Jorge; de Tena Diego, Luca
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
Relevância na Pesquisa
55.88%
The South Asia region is lagging behind many regions in the world in regional electricity cooperation and trading, despite the huge anticipated benefits. This study uses an electricity planning model that produces optimal expansion of electricity generation capacities and transmission interconnections in the long-term to quantify the benefits of unrestricted cross-border electricity trade in the South Asia during 2015–40. The study finds that the unrestricted electricity trade provision would save US$226 billion (US$9 billion per year) of electricity supply costs over the period. The ratio of the present value of benefits, in the form of reduction of fuel costs, to the present value of increased costs due to generation and interconnection would be 5.3. The provision would reduce regional power sector carbon dioxide emissions by 8 percent, mainly because of substitution of coal-based generation with hydro-based generation, although regional emissions would be well above current levels absent other policy interventions. To achieve these benefits...

World Bank Group Support to Electricity Access, FY2000-2014; An Independent Evaluation

Independent Evaluation Group
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Report; Publications & Research; Publications & Research :: Working Paper
ENGLISH; EN_US
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55.88%
The World Bank Group has committed to achieving universal access to electricity by 2030 under the Sustainable Energy for All (SE4All) initiative. This is a daunting challenge: more than 1 billion people do not have access, and another 1 billion have chronically inadequate or unreliable service. Most of those without access are poor, and the largest share is in Sub-Saharan Africa. Achieving universal access within 15 years for the low-access countries (those with under 50 percent coverage) requires a quantum leap from their present pace of 1.6 million connections per year to 14.6 million per year until 2030. The investment needed would be about $37 billion per year, including erasing generation deficits and meeting demand from economic growth. By comparison, in recent years, low-access countries received an average of $3.6 billion per year for their electricity sectors from public and private sources, including $1.5 billion per year from the World Bank Group. Development outcomes of the Bank Group’s assistance were generally favorable compared with other infrastructure sectors. However...

More Power to India : The Challenge of Electricity Distribution

Pargal, Sheoli; Banerjee, Sudeshna Ghosh
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
Tipo: Publications & Research :: Publication
ENGLISH; EN_US
Relevância na Pesquisa
55.99%
This report assesses progress in implementing the government of India's power sector reform agenda and examines the performance of the sector along different dimensions. India has emphasized that an efficient, resilient, and financially robust power sector is essential for growth and poverty reduction. Almost all investment-climate surveys point to poor availability and quality of power as critical constraints to commercial and manufacturing activity and national competitiveness. Further, more than 300 million Indians live without electricity, and those with power must cope with unreliable supply, pointing to huge unsatisfied demand and restricted consumer welfare. This report reviews the evolution of the Indian power sector since the landmark Electricity Act of 2003, with a focus on distribution as key to the performance and viability of the sector. While all three segments of the power sector (generation, transmission, and distribution) are important, revenues originate with the customer at distribution...

The Role of Policy Driven Incentives : A Cross-Country Analysis

Vagliasindi, Maria
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
55.97%
This paper presents new global evidence on the key determinants of public-private partnership investment in electricity generated by renewable energy based on a panel data analysis for 105 developing countries over a period of 16 years from 1993 to 2008. It aims to identify the key factors affecting the private investor's decision to enter renewable-based energy generation, through a probit analysis and the amount of investment sunk in this market segment, based on Heckman's sample selection analysis. One of the key results of the paper is that the market for renewable-based energy is strongly driven by supportive policies. Support policies serve not only to attract the entry of private investors, but also to determine the level of investment. In the latter case, its impact is less significant, suggesting the need over time to revisit the power of the incentive schemes, as well as the implied allocation of risks between the public and private sector to ensure that feed-in tariffs produce the desired amount of investment. In contrast...

Tajikistan's Winter Energy Crisis : Electricity Supply and Demand Alternatives

Fields, Daryl; Kochnakyan, Artur; Mukhamedova, Takhmina; Stuggins, Gary; Besant-Jones, John
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
ENGLISH; EN_US
Relevância na Pesquisa
55.88%
Tajikistan's electricity system is in a state of crisis. Approximately 70 percent of the Tajik people suffer from extensive shortages of electricity during the winter. These shortages, estimated at about 2,700 GWh, about a quarter of winter electricity demand, impose economic losses estimated at over United States (US) 200 million dollars per annum or 3 percent of Gross Domestic Product (GDP). The electricity shortages have not been addressed because investments have not been made in new electricity supply capacity and maintenance of existing assets has not improved. The financial incentive for electricity consumers to reduce their consumption is inadequate as electricity prices are among the lowest in the world. Without prompt action to remedy the causes of Tajikistan's electricity crisis and with growing demand, the shortages could increase to about 4,500 GWh by 2016 (over a third of winter electricity demand) or worse. The World Bank undertook this study to assist the Government of Tajikistan (GoT) in finding ways to overcome the current electricity shortages and establish a sound basis for meeting the growing electricity demand in Tajikistan. The study focuses on the investments and policy reforms needed between now and 2020 to strengthen the financial...

Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa

Foster, Vivien; Steinbuks, Jevgenijs
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Publications & Research :: Policy Research Working Paper
ENGLISH
Relevância na Pesquisa
55.95%
This paper documents the prevalence of in-house generation of electric power by firms in Sub-Saharan Africa and attempts to identify the underlying causes. The analysis is based on two data sources. The UDI World Electric Power Plants Data Base (WEPP), a global inventory of electric power generating units, provides a detailed inventory of in-house generation at the country level. The World Bank's Enterprise Survey Database captures business perceptions of the obstacles to enterprise growth for 8,483 currently operating firms in 25 African countries. Overall, so-called own generation by firms-which has been on the rise in recent years-accounts for about 6 percent of installed generation capacity in Sub-Saharan Africa (equivalent to at least 4,000 MW of installed capacity). However, this share doubles to around 12 percent in the low-income countries, the post-conflict countries, and more generally on the Western side of the continent. In a handful of countries own generation represents more than 20 percent of capacity. Rigorous empirical analysis shows that unreliable public power supplies is far from being the only or even the largest factor driving generator ownership. Firm characteristics have a major influence-in particular...

A New Slant on Slopes : Measuring the Benefits of Increased Electricity Access in Developing Countries

World Bank
Fonte: World Bank Publicador: World Bank
Tipo: Economic & Sector Work :: Energy Study
ENGLISH
Relevância na Pesquisa
55.88%
The objective of this paper is to shed some light on the benefits of improved access to electricity supply, specifically the benefits referred to as, 'consumer's surplus', which is the difference between what customers are willing to pay for the utilities associated with electricity access and the price that they actually pay. The paper leads to several important policy messages for the preparation of investments aiming to increase energy access in developing countries: consumer surplus as the measure for estimating benefits of enlarged access by households to public electricity supply needs to be used with caution; make sure that benefits of increased access to electricity are measured both in terms of gains in consumer surplus and gains in real income from electrification; plan electricity access expansion taking into account that reinforced electricity access may increase consumption of electricity modestly; plan electrification along with accompanying measures to ease access to electricity consuming appliances; and strengthen public data on energy consumption. The paper leads to specific conclusions relative to: the methodology to calculate benefits of increased electricity access; demand patterns for lighting purposes; demand patterns for entertainment and information purposes...

Leveling the Field for Renewables : Mexico's New Policy Framework for Incorporating External Costs of Electricity Generation

World Bank
Fonte: Washington, DC Publicador: Washington, DC
ENGLISH; EN
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65.85%
Mexico has started a number of efforts to develop adequate policy frameworks in several areas including the energy sector, transportation and industrial policies, and forestry and natural resources management. Its Climate Change Law and the National Strategy on Climate Change envision is changing the upward trend of its carbon dioxide emissions towards a total decline of emission of thirty percent by 2020, and fifty percent by 2050. Achieving these ambitious policy goals is challenging for the country and will require many distinct efforts to mainstream climate change in policy design. Careful economic analysis will be critical to effectively reduce emissions while allowing for sustainable development. The policy evaluated in the study is part of Mexico's policy framework to promote renewable energy. The Ministry of Energy in Mexico, SENER, has issued a Methodology to incorporate external costs of electricity generation. While external costs are not privative of fossil energy, the Mexican government has started this process by focusing on the external costs on health and climate change...

Cambodia Power Sector : Technical Assistance for Capacity Building of the Electricity Authority of Cambodia

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Publications & Research :: ESMAP Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
55.88%
The Electricity Authority of Cambodia (EAC) is in its nascent stage of development. However, it has undertaken initial steps toward increasing public awareness of electricity regulation and issuing licenses to larger scale generators and distributors in urban areas. EAC's next important task is to formalize the operations of small-scale private operators in the rural areas. The regulatory framework for rural electricity operations in the country has yet to be fully developed. Guidelines and procedures are currently being drafted by EAC, but they still have to be tested thus, gradual revisions can be anticipated and precedents must be established. In addition, the scope of EAC's operations must be expanded to include, among other things, definitions of technical standards and procedures for determining tariff levels. In view of EAC's extensive work plan, the Energy Sector Management Assistance Program (ESMAP) has provided a grant toward the financing for a technical advisor to support EAC in these activities.

Spatial Dynamics of Electricity Usage in India

Ghani, Ejaz; Goswami, Arti Grover; Kerr, William R.
Fonte: World Bank Group, Washington, DC Publicador: World Bank Group, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
55.88%
India's manufacturing sector has undergone many spatial adjustments since 1989, including, for example, the organized sector's migration to rural locations, the powerful rise of informal manufacturing within cities, and the development of intermediate cities for manufacturing. This paper investigates the impact of these spatial adjustments for electricity usage in India s manufacturing sector. Striking spatial differences in energy usage exist, and whether spatial adjustments exacerbate or alleviate energy consumption strains is important for issues ranging from reducing India's power blackouts to stemming rising pollution levels. Using detailed surveys for the organized and unorganized sectors, the analysis finds that electricity usage per unit of output in urban plants declined steadily during 1989-2010. In the rural areas, by contrast, electricity consumption per unit of output for organized sector plants peaked in 2000 and thereafter declined. Decomposing the observed trends in aggregate electricity usage from 2000 onwards...

Mongolia : Development Impacts of Solar-Powered Electricity Services

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Publications & Research :: Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
55.91%
Mongolia is a vast landlocked country with a relatively small population. Other than those living in the capital city and a few urban centers, the rest of its citizens (about 35 percent or one million people) are geographically disbursed throughout the rural countryside. Among them about three quarters are nomadic herders living in portable tents (gers). Given the immense logistical and climatic challenges, rural electrification was largely undeveloped until the Government launched the National 100,000 Solar Ger Electrification Program in 1999. The World Bank-assisted Renewable Energy and Rural Electricity Access Project (REAP) was conceived in 2006 to help the Government revitalize the 100k Program and remove other barriers to rural electrification. The ultimate objective of the project was to increase electricity access and improve the reliability of services in off-grid soum centers and amongst the herder population. The main portion of this report is divided into two chapters (Chapters 2-3). Chapter 2 is a brief description of the two beneficiary surveys carried out after REAP was completed. It includes the methodologies used...

Rethinking Electricity Tariffs and Subsidies in Pakistan

Trimble, Chris; Yoshida, Nobuo; Saqib, Mohammad
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Economic & Sector Work :: Policy Note; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
55.88%
Pakistan's electricity sector is in crisis: extended periods of blackouts persisted in 2010 and circular debt is increasing. Despite investments in generation capacity, electricity demand continues to exceed supply, with blackouts as long as 8-10 hours per day in cities and sometimes double that in rural areas, and is widely recognized as a severe obstacle to growth and poverty reduction. In November 2010, the government was forced to rent the world's largest power ship to boost generation capacity. Meanwhile, the government of Pakistan's (GOP) inability to finance its commitment to fund subsidies, inefficiencies of the sector entities including low collections, delays in determination and notifications, and increased cost of fuel imports contribute to an increasingly severe circular debt problem. The analysis shows that given the current cost of electricity supply, the March 2011 tariff structure will improve the benefit incidence of electricity subsidies for residential users and reduce fiscal burden significantly in comparison to March 2008. For example...

Lebanon - Social Impact Analysis : Electricity and Water Sectors

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Policy Note; Economic & Sector Work
ENGLISH; EN_US
Relevância na Pesquisa
55.88%
The purpose of this Social Impact Analysis (SIA) is to probe the social, poverty, and equity dimensions of electricity and water sector reforms' and provide meaningful analysis to policy makers based on recently collected data. With a focus on households, the end users of utility services, the study complements the recent and ongoing studies on the Lebanon water and energy sectors that deal with more technical and supply side issues. The study assesses how poor and vulnerable households are affected by the current utility service situation and how they may be affected by reform proposals under deliberation. The aim is to provide policy makers with a deeper understanding of the social dimensions of water and electricity consumption as well as tools for estimating the distributional impacts of reform measures. This study followed the Poverty and Social Impact Analysis (PSIA) approach, an increasingly common approach, used both within and outside the World Bank to evaluate the distributional impacts of policy reforms. Chapter two provides a review of household electricity supply and demand...