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Minding the gap: World Bank's assistance to power shortage mitigation in the developing world
Abstract
This paper describes the World Bank's technical assistance and lending efforts in support of developing countries facing power shortages. The paper reviews the World Bank's experience in helping governments to mitigate power shortages in Africa, South Asia, East Asia, and Latin America regions. The paper stresses the need to consider each power “crunch” on an individual basis, and describes the process used in diagnosing a shortage situation and prescribing mitigation strategies. Several brief case studies are presented, including Botswana, Brazil, Uganda, and South Africa. The political and customer-centric dimensions of power shortage mitigation are briefly described, with suggestions for minimizing the socio-economic impacts of power shortages on the urban and rural poors. The paper concludes that an integrated supply–demand portfolio approach works best, and within the portfolio a mix of market-based rationing, emergency mobilization of customer-owned generation, interruptible rates, load control, and energy efficient lighting should be sought. Although the best formulation will vary according to market structure, demand composition, and nature of the crisis, World Bank practitioners have found one program that works almost everywhere to produce fast and effective results – mass market Compact Fluorescent Lamp (CFL) replacement programs.
... Resource shortages are a well-known problem that is confronting nations globally, especially in developing countries, which are keen to set up new generating capacities and mitigate supply-affecting factors. Even developed economies face this problem recurrently [10]. An ongoing recovery from the aftermaths of COVID-19, the economic recession, frequent natural disasters and ongoing geopolitical conflicts necessitates that the economy focuses on energy independence and sustainability. ...
... d It is seen that time slots 7-10, 12 and 14 indicate that TD is fully supplied using community reserves. At some time slots (9,10), it is independently supported by the RES energy. Figure 10 indicates the performance in terms of COP and COS. ...
... C2C is a combination of COP and COS. Equation (10) represents the objective of minimizing the cumulative C2C. This C2C is applied to only Fuzzy Single Q-Learning and Fuzzy Double Q-Learning methods. ...
The rapid depletion of fossil reserves and their rising costs necessitate that consumers collaborate and use their resources judiciously. This paper proposes a demand response-based centralized control strategy that facilitates optimal resource management. A central controller (CC) is developed to overlook the buy/sell strategies based on load, generation status and utility retail prices. This community ecosystem consists of smart and regular houses, renewable energy sources (RES) and a community-wide energy storage system (ESS). The CC facilitates community energy brokering with the grid via these smart houses while still aligning with community requirements through the integration of RES and ESS. A novel CC leveraging Fuzzy Double Q-Learning method is introduced, and it is benchmarked against a Deterministic method and an established Fuzzy Single Q-Learning method. A substantial improvement in energy trading performance, buying and selling flexibility, and cost to community (C2C) is observed via this model–methodology combination. The comprehensive comparative analysis also showcases the significance of the cost reductions, the improved efficiencies, and the sustainable and economic approach toward the community ESS. The results indicate an overall improvement of 18.3% in C2C and a day saving of $5.34 when compared against Deterministic approach. Additionally, a 3.4% improvement in C2C is observed when compared against an established Fuzzy Single Q-Learning method.
... Prolonged energy crises can have detrimental effect on the economy and the life of consumers. If energy crises persists for a long period, the country's economy loses its competitiveness as a result of uncertainty in electricity supply and the high cost of electricity (Heffner et al., 2010). The cost of electricity becomes unbearably high as consumers resort to alternative ways of generating their own electricity which in itself is expensive (Heffner et al., 2010). ...
... If energy crises persists for a long period, the country's economy loses its competitiveness as a result of uncertainty in electricity supply and the high cost of electricity (Heffner et al., 2010). The cost of electricity becomes unbearably high as consumers resort to alternative ways of generating their own electricity which in itself is expensive (Heffner et al., 2010). shortfalls. ...
... Hard to reach areas and areas without television and radio were sensitized through road shows, campaigns and demonstrations. Catchy phrases were used in adverts to mobilize consumers to appreciate the supply challenges (Heffner et al., 2010). The impact of the Chilean energy crises in 2007/2008 was mitigated with the rolling out of energy saving measures. ...
Shortfall in electricity supply or energy crisis is key challenge to economic development. It is a common problem faced in many parts of the world. Factors that contribute to energy crises or electricity shortages include drought, earthquakes, fuel shortages and equipment breakdown. Ghana in recent times has faced serious energy shortfalls. This paper discusses the major causes of energy crises in some countries including Ghana, and highlights the strategies used in mitigating the impact on consumers/economy. The applicability or otherwise of some crises management strategies in Ghana have also been discussed. The paper concludes by recommending demand side management programs as part of a portfolio of measures that can mitigate the impact of electricity shortfalls on consumers in Ghana.
... Load shedding is easy to implement and can prevent system collapse by cutting off electricity to blocks of customers. However this form of rationing causes economic losses, reduces reliability and damages customer morale (Heffner, 2009). Reliance on load shedding also has negative environmental impacts, as it often forces customers to invest in polluting and expensive diesel-generated back up power supplies. ...
... Trading among large energy users willing to pay more for or be compensated for using less than the rationed amount of electricity is a much more economically efficient solution than applying a fixed baseline to all customers. This market-based supplement to the Brazilian quota system has been credited with reducing the impact on GDP of consumption rationing by as much as two-thirds, from 2.4% to 0.8% (Heffner, 2009). ...
... World Bank studies have found large-scale deployment of CFLs for households and small businesses can be quickly implemented to alleviate capacity and energy constraints. CFLs are particularly effective at alleviating peak-power capacity constraints, as household lighting hours often correspond with electricity peak demand (Heffner, 2009). CFL replacement programmes provide other benefits, including lower customer bills and avoidance of costly peaking generation. ...
... On the other hand, an overview of available measures, their potential (demand reduction) impact and costs (economic and political) is necessary. Sustained deficits have been faced by several countries around the world despite of their market structure and generation mix as reported by [10,5,1], many of these are hydro-dominated electricity systems. Figure 1 shows some of the major sustained energy crises around the world and the main sources of the problem: unexpected demand growth (U), extreme temperatures (E), droughts (D), lack of investment in new generation (I), financial problems/liquidity of generators (L), extended failure/maintenance of critical generators in the system (M), failed market reforms (R), and transmission constraints (T) among other causes. ...
... FOR PERSONAL USE ONLY-FOR OTHER USE, PLEASE ADDRESS YOURSELF TO THE PUBLISHER Systematic tool to plan and evaluate demand side strategies during energy crises 5 3. Show how such a tool can be integrated into existent medium-term planning systems in order to evaluate costs and benefits; 4. Demonstrate its use on a simplified example during the Chilean 2011-drought; 5. Draw first lessons on how the tool could be used for many different hydrothermal systems. ...
... The idea behind the previous expression is to model the effects of the measures on the different loads through the factors α (lower bound) and β (upper bound). Figure 4 shows the interaction of the set of constraints (5) and (10) with the expected blocks of demand in each stage of the problem. Fig. 4: Effects of the model for variable demand. ...
HARE, a systematic tool to evaluate demand side measures to face sustained energy supply risk in hydrothermal power systems is presented in this paper. The main focus of the paper is to help centralized planners to systematically discuss, select, and plan the measures that better respond to the variety of critical situations that can arise due to expected energy shortage, integrate them into the usual medium-term scheduling tool and consequently keep the associated overall costs as low as possible. A medium-term definition of the system state is proposed as a decision-making aid, as well as a set of general energy saving measures that can be applied with their corresponding attributes (time delays, costs of implementation, and energy saving impact). The tool is demonstrated and applied to a simplified version of Chilean’s medium-term hydrothermal scheduling model and to a specific risk scenario experienced during 2011. The results show that it is possible to define various sets of demand side measures that avoid the impacts on the system and subsequently to select among them those with least expected implementation costs. This tool seems mainly useful for hydro-electric systems, which are more vulnerable to sustained energy supply risk. Every power system will have to go through a detailed review and planning process to implement this type of tool.
... Resolving the factors that contribute to power shortages (constructing a new plant, fixing damaged infrastructure, or waiting for rainfall, in case shortage is due to drought) can take a long period which may affect the economic growth and life of consumers. The economy may be badly affected if power shortage prolongs without adequate and effective short term mitigation measures (Heffner et al., 2010). For instance, it is estimated that Ghana loses between 2% to 6% of its annual gross domestic product due to power shortages (Obeng et al., 2019). ...
... Repression of democratic rights in many westernlike cultures would be enough to cause social upheaval [5], even if this is not a need whose deprivation would directly result in death. An extended shortage of electrical power, which would not even exist two centuries ago, might lead, among another things, to a high social cost [6]. ...
We study conditions leading to collapse on a nonequilibrium toy model introduced here for the interaction dynamics between a social and an ecological system based on the concept of essentiality of services and goods. One key difference from previous models is the separation between purely environmental collapse and that caused by an imbalance in the population consumption of essential goods. By studying different regimes defined by phenomenological parameters, we identify sustainable and unsustainable phases as well as the likelihood of collapse. The behavior of the stochastic version of the model is analyzed with a combination of analytical and computational techniques introduced here and shown to be consistent with key features of such processes in real life.
... Power shortages seldom have a single or the same cause. However, a typical pattern begins with underinvestment or very rapid demand growth that degrades reserve margins below acceptable reliability levels, and then unusual combinations of market fundamentals, such as adverse weather, fuel supply, or plant availability, will create a crisis (Heffner et al. 2010). These shortages have occurred in both liberalised market structures and traditional regulated monopolistic regimes. ...
Andrea Bonzanni provides an overview of the economics of transporting electricity and gas through networks, critically discussing the numerous similarities and the crucial differences between the two energy carriers. The chapter describes the physical and economic properties of energy networks, focusing on their monopolistic nature and the implications for electricity and gas systems. It goes onto review how energy networks are treated in competitive energy markets, how access to networks functions and what arrangements are established to ensure efficient economic outcomes and equal treatment of all market participants. Finally, it explains how access to energy networks is charged and how network users exchange energy within a network.
... Power shortages seldom have a single or the same cause. However, a typical pattern begins with underinvestment or very rapid demand growth that degrades reserve margins below acceptable reliability levels, and then unusual combinations of market fundamentals, such as adverse weather, fuel supply, or plant availability, will create a crisis (Heffner et al. 2010). These shortages have occurred in both liberalised market structures and traditional regulated monopolistic regimes. ...
Energy subsidies are widespread among OECD and non-OECD countries and exist for all energy types. Governments often give noble and legitimate rationales for the introduction and continuation of various energy subsidies, but the reality of energy subsidy policies is nearly always more complex than the stated rationale. Governments have tried to balance the energy trilemma by implementing several types of energy subsidies at once. This has resulted in a complex political economy of pervasive subsidies across energy production and consumption. Even when some policy priorities clearly change, the phasing out of existing subsidies may prove politically challenging when powerful vested interest groups exercise their influence over governmental decision-making. This chapter goes in depth on the types, size, objectives, and politics of subsidies to fossil fuel consumption and production and those to renewable electricity.
... Customers usually dislike this experience, as it is a source of several losses and discomforts [18]. Other alternatives to cater for higher consumption are the use of large storage devices, which are very expensive, and expansion of generation capacity, which takes years in developing countries, particularly on the African continent [19][20][21]. Demand-side management (DSM) is the best approach for supply-demand matching by which customer demand can be shaped to improve utilization factors and load balance [22]. In addition, DSM programs may defer capital investment in generation, transmission and distribution networks and storage, and improve system load [23][24][25]. ...
Due to failures or even the absence of an electricity grid, microgrid systems are becoming popular solutions for electrifying African rural communities. However, they are heavily stressed and complex to control due to their intermittency and demand growth. Demand side management (DSM) serves as an option to increase the level of flexibility on the demand side by scheduling users’ consumption patterns profiles in response to supply. This paper proposes a demand-side management strategy based on load shifting and peak clipping. The proposed approach was modelled in a MATLAB/Simulink R2021a environment and was optimized using the artificial neural network (ANN) algorithm. Simulations were carried out to test the model’s efficacy in a stand-alone PV-battery microgrid in East Africa. The proposed algorithm reduces the peak demand, smoothing the load profile to the desired level, and improves the system’s peak to average ratio (PAR). The presence of deferrable loads has been considered to bring more flexible demand-side management. Results promise decreases in peak demand and peak to average ratio of about 31.2% and 7.5% through peak clipping. In addition, load shifting promises more flexibility to customers.
... Power shortages seldom have a single or the same cause. However, a typical pattern begins with underinvestment or very rapid demand growth that degrades reserve margins below acceptable reliability levels, and then unusual combinations of market fundamentals, such as adverse weather, fuel supply, or plant availability, will create a crisis (Heffner et al. 2010). These shortages have occurred in both liberalised market structures and traditional regulated monopolistic regimes. ...
This chapter provides an overview of the Russian energy sector and its role in the Russian economy, also in the context of energy transition. Russia, ranking fourth in the world in primary energy consumption and in carbon dioxide emissions, adheres to the strategy of “business as usual” and relies on fossil fuels. Decarbonization of the energy sector is not yet on the agenda; a skeptical attitude to the problem of global climate change prevails among stakeholders. GDP energy intensity remains high, supported by relatively low energy prices and high cost of capital. The share of solar and wind energy in the energy balance is insignificant and is not expected to exceed 1% by 2035. The challenge for Russia in the coming years is to develop a new strategy for the development of its energy sector, which enters the zone of high turbulence—even in the absence of the influence of the climate change agenda—due to COVID-19, increasing global competition, growing technological isolation and financial constraints.
... As the second largest continent with population of about 1.3 billion, Africa has become a new economic engine in the world, with vast potential for growth in the near future [1]. Nowadays, Africa is facing a serious shortage of power [2], and the construction of power infrastructure has become the primary task of Africa's development. As the disparity between the power supply and demand of conventional energy is increasingly aggravating and the climatic and environmental issues are increasingly prominent, most African countries start to seek new power energy alternatives from the perspective of sustainable development and energy security [3]. ...
Vigorously promoting the development of photovoltaic (PV) resources is a positive measure taken by humanity in response to the changes in global climate and environment. At the same time, combining photovoltaic power generation systems with traditional power generation systems, using the advantages of different power generation systems to achieve real-time scheduling optimization has become an urgent problem to be solved in engineering applications. This paper attempts to study the climate and environmental benefits of the development of photovoltaic resource in Africa by taking Angola as an example based on actual project data. According to the characteristics, load requirements, seasonal characteristics and actual engineering background of Tombwa in Angola, a baseline Scenario and four comparative Scenarios were established, and the operating costs of the five Scenarios in local rainy season and dry season were obtained respectively. The cost of electricity for the five Scenarios calculated subsequently. Through real-time scheduling and optimization of the software, the emission characteristics of CO2, NOx and CO under five Scenarios are obtained, and the climate benefits and environmental benefits of the five scenarios are further analyzed and compared. The results show that the development of photovoltaic resources in Angola has good climate and environmental benefits. In addition, the combine application of diesel, PV and battery power system will be the most effective of the five Scenarios to reduce the CO2 emissions with the lowest levelized cost of electricity (LCOE) of 0.38 yuan/kwh, as a cost-effective solution in remote areas of Angola, Africa.
... Consumers in developing countries are facing more problems due to the growing energy demand and supply gap because they have to face higher energy prices and power outages in different areas. Massive investment and infrastructure are required to increase the overall capacity of generation plants, and it can take several years to develop new energy sources in developing countries [2]. Research shows that energy wastage and inefficient use of energy are boosting energy crises in most of the regions [3]. ...
Energy-saving strategies cannot be implemented without having detailed and regular power consumption data of a facility. The installation of an energy monitoring and data logging system can help in planning energy efficiency improvement policies by providing daily, monthly, and yearly energy consumption reports and graphs. The purpose of this study was to demonstrate the impact of an energy monitoring and management system on the improvement of energy efficiency in the industrial sector of developing countries. This study introduced an energy monitoring and data logging system installed in an automobile factory in Pakistan. Energy consumption data, which also included power quality data, were collected with the help of energy analyzers and transmitted to a centralized supervisory control and data acquisition (SCADA) software for data logging and monitoring purposes. This system was developed by combining Modbus with industrial Ethernet to communicate real-time energy consumption data of the factory to multiple local and remote locations. Monitoring and logging the real-time energy consumption data helped the user to find the significant energy losses inside the factory and to implement various energy conservation policies inside the facility, resulting in energy efficiency improvement. The energy consumption results indicate that the proposed system can help achieve an approximately 8% improvement in energy efficiency.
... The economic challenges that small island developing states face because of their energy dependence on imported fossil fuels is well documented as is the recommendation to adopt energy conservation strategies [19,22,53]. In fact, recent estimates suggest that the adoption of energy-efficient technologies in the Caribbean could cut electricity consumption by as much as 10% over the next decade, potentially saving the region billions of dollars in investments that would otherwise be needed to expand power generation capacity [22,38]. ...
A regulatory impact assessment (RIA) was conducted to provide information and analyses to support government decision-making on policy and conformity assessment options for adoption of proposed energy efficient lighting standards in the Caribbean island nation of Antigua and Barbuda. The methodology comprised of a multi-criteria assessment methodology coupled with perceptual cost effectiveness assessment, based on primary data obtained from an expert panel. Findings suggest that a voluntary incentive policy with intervention in the consumer market such as a product subsidy possibly coupled with a product exchange scheme in phased approach towards a mandatory obligation to energy efficient lighting products could be the way forward. Findings also suggest suitability of a third-party conformity assessment approach whereby manufacturers/suppliers/importers
will require certification for energy efficient lighting products by an approved, accredited entity before or upon local market entry. The RIA is useful to government policy makers seeking to justify and prioritize their available options for efficient and effective adoption of the proposed lighting standards. This study also introduces the RIA as an approach that should be institutionalized in the Caribbean region as a tool for data driven and evidence based policy decisions.
... As a result, the load-shedding in these areas increased but the overall transmission and distribution losses reduced from 25% [46] to 16.9% [34]. However, the most important factor is the shortage of money that is considered as one of the biggest deficiency plaguing the energy sector [24,47]. Few years ago, in July 2012, Pakistan's economy was struggling to overcome the liquidity problems but in 2014 Pakistan has improved its level of liquidity condition [48]. ...
The ongoing energy crisis in Pakistan and the dependency on thermal electricity generation has contributed to the necessity to optimize energy production system. The expensive thermal electricity and inability to recover its cost gives unprecedented rise to the electricity tariffs. In this study, optimization of the energy production system has been performed using linear programing model. As the high cost of electricity generation has been found as the root cause of energy crises, the objective function of the proposed model is cost minimization that will also reduce the circular debt. Specifically, it has examined the optimum proportion of energy production from each available source under two different scenarios. The first scenario considers that the existing system should be used at its maximum capacity; in the second scenario, seventy percent utilization of power plants has been examined. The second scenario summarizes the optimum mix of energy production which minimizes the cost of electricity production. The differential cost that is payable by the government as a subsidy is also compensated. Similarly, it reduces circular debt that is a bottleneck between power generation companies and oil supply companies. Thus, the proposed model has a tendency to minimize the cost of energy production, and further reduce circular debt as well as the burden of a subsidy on the government. The study specifies the problems confronting Pakistan's energy sector and identifies the key elements of a potential policy response to address the country's severe power crisis.
... 250 MW Bujagali hydropower project, and demand growth (Mawejje et al. 2013;Heffner et al. 2010). ...
This paper examines the impact of adoption of power factor correction technology on electricity peak demand in Uganda. Specifically, the paper examines the variability of peak electricity demand in the periods before and after the implementation of power factor improvement schemes and assesses the likely impact of power factor improvement schemes on peak demand. Results suggest that power factor correction technology implemented among industries and commercial enterprises increased the power factor in these industries from an average of 0.68 to 0.95 and saved up to 8.04 MVA of demand as at the end of 2014. Results further indicate that the implementation of the power factor correction scheme has reduced the growth rate and abated the variability of both total maximum/peak demand and domestic peak demand. Finally, with the implementation of power factor correction scheme, there is a noticeable reduction in electricity consumption at peak time of use (TOU) and growth in consumption of electricity at nonpeak time TOU, which was not the case before the implementation of the scheme.
... It is pertinent to mention that the national electricity utility, Eskom, has been very proactive in the areas of energyefficient lightning and the saving of electricity (Sarkar and Singh 2010). Eskom has rolled out and distributed free energyefficient bulbs to both domestic and commercial customers for use at home and offices (Heffner et al. 2010). However, this is not the case in events because of the sophistication involved in operations where sophisticated equipment and lightning are used to serve a wider audience. ...
Energy plays a very significant role in all aspects of humankind. It is required for domestic, industrial and other usage. With regard to industrial activity, energy is used to power various equipment of a business, whether for lightning, operating the machines, devices or appliances. The events industry is no exception. Socially and economically, this is acceptable by all means. However, the concern is the use of fossil fuels in events which is harmful and destructive to the environment by causing global climate change. The article highlights that this is impacting the environment and threatening various social economic opportunities, including events. This article accentuates that there are other sustainable renewable alternative energies that can be used to generate and power equipment in business ventures, including events. The article analyses the complementary role of energy-efficient equipment with the use of renewable energy and shows that energy-efficient equipment will perform better functions and output than non-efficient fossil fuel energy equipment. The article points out that, in South Africa, there is a paucity of scholarly literature on the use of renewable energy and energy-efficient equipment in events, thereby creating a gap. It is against this scholarly inertia that this article makes a contribution by advancing an argument for the potential benefits of the use of sustainable renewable energy sources in events.
DOI: 10.5901/mjss.2013.v4n14p835
... The solar PV industry in Europe and USA is also expecting to decrease the PV production costs in course of time [6]. Bangladesh, a developing country, has been facing a severe power crisis for a decade [7][8].The national power generation depends on natural gas and at the current rate of use, which is increasing 10% annually, the proven natural gas reserve may last only for 15-20 more years [9]. Though only 40% of the total population is connected to the grid, the demand is highly unmet due to generation scarcity. ...
The electricity generation in Bangladesh is unlikely to be adequate to serve the whole demand of the grid unless power is harnessed from alternative sources. Being with no alternative, the government is persuading and purchasing fossil based electricity from private Independent Power Producer (IPP) with higher price. The escalation of electricity purchase price being inevitable, it could also be supplied by renewables. We hypothetically integrated centralized PV system into an existing rural electric feeder in Bangladesh. The feeder currently supplies electricity with 40% of its annual energy demand unmet due to supply shortage. The viability of proposed centralized PV system integrated with rural grid comparing with IPP power has been analyzed. The software Homer and RETScreen have been used for system optimization and financial viability analysis. We found that, without accounting clean tech benefits, the PV energy production cost is 0.250 US/kWh from the fossil fuel based IPP. The economic indicators are favorable to the investment subject to setting electricity selling price for the PV a bit higher (e.g. 0.250 US$/kWh e) with annual price escalation rate at least 3% and backing up by tax exemptions.
... He claims that it is necessary to develop coordinated efforts to guarantee the programs' success [3]. On the other hand, Heffner et al. [4] review the World Bank's experiences in assisting governments to mitigate the lack of energy in developing countries. They indicate that the development of an integrated supply and demand system under a market scheme is the best way to develop a DR portfolio as a way to mitigate energy curtailment. ...
An optimization model that incorporates demand in the paradigm of smart grids and distributed generation is formulated. The objective is to transform the demand into an active agent that helps minimizing costs incurred by a distribution company for energy purchases and capacity payments, in a cost based marginal pricing scheme, also extrapolated to market based bids. The development of a secondary market for ancillary services offered by demand is proposed, with local intelligence and distributed generation, operating in a similar way to a day ahead market. Existing resources from the demand-side are provided to allow hourly market adjustments.
The demand uncertain future is modeled via preference models using discrete choice methods. Portfolios of incentives, tailored to demand needs and preferences, are built.
Consumption profiles of users are identified from synthetic curves and real consumption profiles, associated to large customers. NYISO time series data are used to illustrate the mechanism operation.
The optimization model may be easily integrated into any management model of a market operator or within electricity distribution and traders. The only requirement for proper incorporation is the use of two-way communications for coordinating with the customers in the smart-grid and distributed generation paradigm
... In smaller countries with limited institutional capacities and alternatives, utility DSM may be the only viable option for implementing and financing EE programs. Between 1993 and 2009, the World Bank supported about two dozen utility DSM programs globally (World Bank 2005a; Heffner et al. 2009, World Bank data). ...
Although energy efficiency implementation is increasingly being recognized by policymakers worldwide as one of the most effective means to mitigating rising energy prices, tackling potential environmental risks, and enhancing energy security, mainstreaming its financing in developing country markets continues to be a challenge. Experience shows that converting cost-effective energy savings potential, particularly the demand-side improvement opportunities across sectors, into investments face many barriers and unforeseen transaction costs. This paper draws upon selected experiences with financing energy efficiency in developing countries to explore the key factors of various programmatic approaches and financing instruments that have been applied successfully for delivering energy efficiency solutions. Through case studies, a diverse range of institutional issues are examined related to the identification, packaging, designing, and monitoring approaches that have been used to catalyze traditional and innovative financing of energy efficiency projects. With adequate liquidity in major developing country markets and availability of modern energy savings technologies, it is often the institutional issues that become a key challenge to address in order to finance and implement robust programs. As further operational experience is gained, increased knowledge sharing can lead to scaling-up of such energy efficiency investments. The paper concludes with some ideas for accelerating implementation.
Hidroelektrik santrallerinde verim kaybının en fazla gerçekleştiği yer, türbinlerdir. Bu kayıpların sebepleri ve oranları santrallere ve hatta türbin-generatör ünitelerinin karakteristiklerine bağlı olarak değişmektedir. Türbinlerdeki verim kaybının tespit edilebilmesi, kestirimci bakımların veya optimizasyon çalışmalarının zamanında, doğru bir şekilde yapılabilmesi türbinin mevcut durumunun bilinmesine bağlıdır. Bu çalışmada, türbin veriminin anlık hesaplanması için Alpaslan-1 Hidroelektrik Santraline ait bir türbin-generatör ünitesinde gerçek zamanlı akış ve verim izleme sistemi kuruldu. Boya seyreltme metodu ile debi ölçümü ve türbin performans testlerinden olan mutlak testler yapıldı. Ölçülen debi değeri ile Winter-Kennedy akış sabiti bulundu ve böylece bir diğer performans testlerinden olan endeks testleri, Winter-Kennedy metodu kullanılarak yapıldı. Ayrıca testlerde santral, ünite, generatör verimleri de hesaplandı. Verim izleme sistemi kullanılarak yapılan testlerde türbin veriminde %3,5 oranında bir düşüşün olduğu görüldü. Winter-Kennedy metodu kullanılarak anlık debi hesabı ve anlık verim hesabı yapacak şekilde nihai olarak ayarlanan sistem, çalışır vaziyette bırakıldı.
Energy supply is characterized by its diversity, including traditional energy, such as fossil fuels, nuclear power, as well as renewable energy, such as solar, hydroelectric, geothermal, biomass, and wind energy. It involves a complex network system composed of energy generation, energy transformation, energy transportation, and energy consumption. The network does provide the great flexibility for energy transformation and transportation; meanwhile, it presents a complex task for conducting agile energy dispatching when extreme events have caused local energy shortages that need to be restored timely. One of the useful methodologies to solve such a problem is data mining and analysis. Their main objective is to take advantage of inherent tolerance of the imprecision and uncertainty to obtain tractability, robustness, and low solution-cost. The applications and developments of data mining and analysis have amazingly evolved in the last two decades. Many of these applications can be found in the field of renewable energy and energy efficiency where data mining and analysis techniques are showing a great potential to solve the problems that arise in this area. In this chapter, data mining and analysis techniques are briefly introduced. Then the implementation procedures are presented to demonstrate the application of curve fitting for renewable energy network design and optimization, which has the capability to handle the restoration during extreme and emergency situations with uncertain parameters.
Eskom has been struggling to satisfy the growing demand for electricicity, and load shedding is regarded as the country's biggest economic risk. South Africa's precarious power supply regarded as a national crisis, has been disrupting businesses, B&B's and Guesthouses included for the past 15 years. Eskom applies load shedding by stopping power distribution block-by-block for 2 hours. The study aimed to investigate the qualitative impacts of load shedding, and suggest survival strategies as used by selected B&B's and Guesthouses in Pietermaritzburg. The study found that load shedding as a problem, was not limited to South Africa, but an anomaly in many developing economies, and that it was not about to end due to ageing infrastructure, underinvestment, demand exceeding supply and inefficiencies. It also discovered that B&B's and Guesthouses as SMME's, were more vulnerable because of limited resources and lack of economies of scale. The implication is for owners to learn from each other, move beyond the disruption stage and find alternative sources of energy to return to former homeostasis, or even reach the integration stage of resilience. For the government to rapidly invest in the renewal of infrastructure, develop new power stations, invite other power suppliers to compete or partner with Eskom, actively deal with inefficiencies, and find alterantive and more sustainable sources of energy.
Uganda has ambitions to become a middle‐income country by 2040. Achieving this goal would require an economic transformation that is led and aided by industrialization. Economic transformation and industrialization also require efficient utilization of energy, including electricity. The cost of electricity in Uganda is not cheap; thus, there is an incentive for industries and policymakers to invest in energy efficiency measures. The fact that energy efficiency could contribute to climate and other social policy objectives is also an added advantage. Since the mid‐2000s, following a power crisis, the Government of Uganda has taken several initiatives to promote energy efficiency within the industrial sector. However, although targeted interventions delivered demonstrable gains, efforts to institutionalize industrial energy efficiency remains a challenge. In this article, we use institutional theory and the political economy approach to explore why institutionalization has been difficult to achieve in Uganda. The article pays attention to the underlying political and economic processes to observe the factors that contribute to the non‐institutionalized status. The article argues the need to build a robust regulatory framework with a deliberate intent to broaden consensus around a shared understanding of the trade‐offs and benefits associated with energy efficiency.
This article is categorized under: Policy and Economics > Regional and International Strategies
Sustainable Energy > Energy Efficiency
Sustainable Development > Emerging Economies
Access to electricity has been widely acknowledged as playing an important role in economic growth. However, there has been relatively little research on how access to electricity affects the decisions of firms. Electrification rates in developing countries have increased but electricity access remains plagued by outages. This paper examines the impact of electricity shortages on firm investment. I identify this impact by studying an electricity rationing programme in Ghana, which placed significant constraints on electricity supply to firms. Using data on Ghanaian manufacturing firms, I find a decline in investment in plant and machinery during the electricity rationing period, with a more pronounced decline for firms in electricity-intensive sectors. This result suggests that at least part of the reduction in investment during the electricity rationing period was due to the constraints on the availability of electricity. These findings highlight the potentially negative impact of the inadequate provision of electricity that frequently plagues developing countries. These electricity constraints can hinder growth in these countries by curbing investment by firms.
This handbook draws on the experience of hundreds of energy efficiency experts around the world as well as extensive searches of energy efficiency good governance case studies and literature. The findings from this study are presented as guidance to practitioners and stakeholders on how to address the many EE governance issues. EE governance is a complex topic, so this handbook is organised according to the three main governance areas – enabling frameworks, institutional arrangements and co-ordination mechanisms – and contains individual chapters addressing specific governance topics.
This paper addresses the status, problems and development of distributed energy resources in developing countries. We have focused on the projects in Latin America, Asia, Eastern Europe and North Africa. The problems for developing new energy technologies are linked to the particular conditions as regulated markets, energy policies, urban planning and development, low-income communities, environmental impact and economic instability. We are presenting a perspective based on the literature review of the different proposals for solving the particular problems associated to the implementation of energy projects under the modeling perspective, highlighting the residential environment and domestic applications. Five different fields used on modeling approaches are included in the review: technologic development, economic performance, environmental impact, social context and modeling proposals. We have identified the addressed problems, the applied modeling techniques, the trends showed by the results presented and the expectations for future works in the field of distributed generation.
Zambia has been experiencing an acute electrical energy deficit since June 2015 caused by insufficient water levels at its primary hydro stations. The national utility company subsequently instituted a load-shedding program as means of coping with the energy deficit. Under the program, customers are nominally disconnected from electricity eight hours each day. This research investigates what coping strategies have been adopted by residential consumers in response to load-shedding. The paper focuses on consumers in Kitwe, a city in the Copperbelt province of Zambia. Data were collected using questionnaires administered in Chimwemwe (low income), Ndeke (medium income) and Riverside (high income) townships. The information collected was both quantitative and qualitative. Preliminary research has revealed that the household lifestyle changes such as load shifting and fuel switching, among others, have occurred. The results provide insight into the effects of load-shedding on domestic consumers and the environment, thus advising the relevant authorities on policy guidance regarding national energy planning. The results can also be interpolated on other Sub-Saharan countries with similar demographic distribution and energy usage.
Power delivery has become more dissimilar with that of the previous era. Conventional power and energy materials, such as relic fuels, nuclear power, and renewable energy (solar power, geothermal, hydroelectric, wind power, and biomass), are already present. The energy network operation becomes complicated because the integration of power generation, energy conversion, power transportation, and power utilization should be considered. There is an intricate assignment for us to perform swift power transmission for the extremely urgent situations. These situations are the results of regional lack of energy that needs to be brought back as soon as possible. Advanced supercomputing has already been one of the powerful solutions to work out these issues. This chapter initially presents an introduction of some of the supercomputing techniques and then the potential applications and demonstration examples follow to give the readers some hint on the handling of energy network operation.
Zambia is currently experiencing an energy deficit primarily due to low water levels at its hydro power stations. In June 2015 the national utility instituted a load-shedding program to reduce energy consumption. Most residential customers are nominally without electricity eight hours per day. However, the efficacy of the program at reducing consumption is not apparent, as customers may shift or otherwise adjust their energy use in response to the load shedding. This paper investigates how load-shedding has affected the consumption of electricity by residential users in Kitwe, the second most populous city in Zambia. The monthly electrical energy consumption of 1242 residential customers was analyzed from February 2013 to March 2016. A statistical comparison of consumption before and during load-shedding is made. The findings highlight the change in residential energy consumption and provide valuable data to help utility companies optimize their load management. It will also assist government to properly plan for its economic and energy needs of the growing population.
Energy supply is characterized by its diversity. It involves a complex network system composed of energy generation, energy transformation, energy transportation, and energy consumption, and presents a complex task for conducting agile energy dispatching when extreme events have caused local energy shortages that need to be restored timely. One of the useful methodologies to solve such a problem is soft computing that conducts collaboration, association, and complementariness of the different techniques that integrate it and that cooperate from their basics. Their main objective is to take advantage of inherent tolerance of the imprecision and uncertainty to obtain tractability, robustness, and low solution-cost. In this chapter, the spatial and temporal predictive analysis techniques and their application in energy network optimization are briefly introduced. The application scope covers the energy demand prediction, the identification of the strategy to meet the peak demand requirement, and the environment impact optimization. The demonstration application is presented to demonstrate the application capability and capacity of temporal and spatial analysis to provide prediction of temperature change trend, demand forecast, and the potential environmental impact of traditional power plant operation.
Under the trend of global energy prices continuously going up, this paper considers the concept of maximized energy reduction to model the energy productivity index by decomposing it into energy technical change and energy efficiency change. The paper takes the eight SADC (Southern Africa Development Community ) members as an example to estimate their energy efficiency, energy productivity change, energy technical change, energy efficiency change, and rebound effect on energy use, as well as to test the Jevons Paradox. The time period of the data spans 2005 to 2009. The empirical result shows large energy performance differences among the eight SADC members. Not one country among the eight members is an energy technology innovator. After calculating the rebound effect and testing the Jevons Paradox, the result shows that there seems to be no obvious Jevons Paradox in this economic region.
Energy supply is characterized by its diversity, including traditional energy, such as fossil fuels, nuclear power, as well as renewable energy, such as solar, hydroelectric, geothermal, biomass, and wind energy. It involves a complex network system composed of energy generation, energy transformation, energy transportation, and energy consumption. The network does provide the great flexibility for energy transformation and transportation; meanwhile, it presents a complex task for conducting agile energy dispatching when extreme events have caused local energy shortages that need to be restored timely. One of the useful methodologies to solve such a problem is data mining and analysis. Their main objective is to take advantage of inherent tolerance of the imprecision and uncertainty to obtain tractability, robustness, and low solution-cost. The applications and developments of data mining and analysis have amazingly evolved in the last two decades. Many of these applications can be found in the field of renewable energy and energy efficiency where data mining and analysis techniques are showing a great potential to solve the problems that arise in this area. In this chapter, data mining and analysis techniques are briefly introduced. Then the implementation procedures are presented to demonstrate the application of curve fitting for renewable energy network design and optimization, which has the capability to handle the restoration during extreme and emergency situations with uncertain parameters.
Kuwait is a major oil producing country with an estimated total crude oil production of 2,978 thousand barrel/day in 2012, which represents a 9.2% share in Organization of the Petroleum Exporting Countries (OPEC). The Kuwaiti government opted to share its wealth with the citizens by providing free education, health care and subsidized water and energy. While the consumer benefits from these services, it resulted in profligate consumption patterns on both water and energy. The heavily subsidized energy cost lead to an inefficient energy consumption, which placed monetary and economic burdens on the government. Accordingly the government started seeking opportunities to alleviate these burdens and promote efficient energy utilization and power consumption. This study is conducted to assess the national power and energy situation and proposes the Kuwait Energy Efficiency Plan (KEEP). In the process, various energy conservation opportunities (ECOs) that can be implemented in residential, commercial and governmental buildings, are considered. The ECOs include utilization of increased wall thermal insulation thickness, high performance fenestration, split zones, time of use meters, efficient lighting systems, energy auditing, appliance labeling, programmable thermostats, and building labeling. The impact of the ECOs on energy conservation, peak load and the mitigated CO2 emissions is estimated. The estimated monetary savings for the Kuwaiti government through KEEP is based on a cost of electricity of 15 fils/kWh (5.3 cents/kWh) and 400 KD/kW (394 million) and 142 million KD (106 million at $23.6/barrel). The mitigated emissions of CO2 are found to be 3.860 million tons. This study can provide a general perspective to scientists, policy and decision makers with an insight about the development of a national energy plan for a country with subsidized energy tariffs as in the State of Kuwait. The findings can also provide systems and technology developers with a different perspective for specific subsidized energy tariffs situation to draw their attention in order to develop, market and transfer their technology in the right context.
PbO2+nano-WO3 composite electrode materials were prepared by the composite electrodeposition method on Ti substrate with the intermediate SnO2-Sb2O5 layer. The composition, structure and morphology of the composite electrode materials were investigated by X-ray diffraction (XRD), X-ray photoelectron spectroscopy (XPS), scanning electron microscopy (SEM) analyses and double layer capacitance methode. The results indicate that porosity, roughness and electrochemically effective area of the composite electrode surface are increased because of the embedded nano-WO3. Then, the composite electrodes were used as anodes for oxygen evolution reaction (OER). The activities for the OER of the composites were explained by recording linear scanning voltammograms and Tafel plots. In contrast with the PbO2 electrode without nano-WO3, oxygen evolution onset potentials of the composite electrodes become lower, the overpotentials for oxygen evolution of composite electrodes are decreased, and the OER activities are improved significantly. The overpotential for oxygen evolution at the composite electrode could be lowered by approximately 300 mV compared to that of PbO2 electrode without nano-WO3.
Since the electricity market reforms of 2002, two large-scale power shortages, one occurring in 2004 and one in 2011, exerted a tremendous impact on the economic development of China and also gave rise to a fierce discussion regarding electricity system reforms. In this paper, the background and the influence scale of the two power shortages are described. Second, reasons for these two large-scale power shortages are analyzed from the perspectives of power generation, power consumption and coordination of power sources and grid network construction investments. Characteristics of these two large-scale power shortages are then summarized by comparatively analyzing the performance and the formation of the reasons behind these two large-scale power shortages. Finally, some effective measures that take into account the current status of electricity market reforms in China are suggested. This paper concludes that to eliminate power shortages in China, both the supply and the demand should be considered, and these considerations should be accompanied by supervisory policies and incentive mechanisms.
We develop a cost-benefit framework for extending electricity access in currently un-electrified regions. We first show that distributed technologies may be the lowest-cost electrification option in areas where electricity consumption is low and grid connection costs are high. We also show that some centralized electrification programs provide services with subsidized rates far below cost recovery. An economic model is developed to compare three financial mechanisms that can be used to make capital intensive, distributed electrification technologies more accessible to rural populations; direct subsidies, rental programs and microloans. These contracts are compared on their ability to increase consumer utility for a given cost to the providing agency. We show that a direct technology subsidy is generally preferred when the desired subsidization is high and that, under certain parameter combinations, microloan and rental programs can improve energy access for the poor while also making a profit for the providing agency.
Utility-based Demand-Side Management (DSM) programmes started after the oil crises of the 70's and were adopted by utilities as a standard practice. However, deregulation of the electricity industry threatened DSM. More recent concerns regarding energy dependence and environmental impact of energy use caused renewed attention on the utilities role in energy efficiency fostering. EE is presently a cross-cutting issue, influencing energy policy definition and regulatory activity worldwide. Some instruments for influencing the behaviour of electric utilities in the market are used by regulators, corresponding to both impositions and stimuli, such as defining savings targets or decoupling profits from energy sales. The paper addresses categories of regulatory instruments and refers to examples of countries and regions using these identified categories of instruments. Although some cases show voluntary involvement of utilities in EE promotion on the grounds of customer retention strategies, there is a clear prevalence of regulatory constrained markets where utilities rationally engage in energy efficiency promotion. (c) 2013 Elsevier Ltd. All rights reserved.
The consequence of short-time energy shortage under extreme conditions, such as earthquake, tsunami, and hurricane, may cause local areas to suffer from delayed rescues, widespread power outages, tremendous economic losses, and even public safety threats. In such urgent events of local energy shortage, agile energy dispatching through an effective energy transportation network, targeting the minimum energy recovery time, should be a top priority. In this paper, a novel methodology is developed for energy network dispatch optimization under emergency of local energy shortage, which includes four stages of work. First, emergency-area-centered energy network needs to be characterized, where the capacity, quantity, and availability of various energy sources are determined. Second, the energy initial situation under emergency conditions needs to be identified. Then, the energy dispatch optimization is conducted based on a developed MILP (mixed-integer linear programming) model in the third stage. Finally, the sensitivity of the minimum dispatch time with respect to uncertainty parameters is characterized by partitioning the entire space of uncertainty parameters into multiple subspaces. The efficacy of the developed methodology is demonstrated via a case study with in-depth discussions.
This article examines consumer willingness to pay for energy-saving compact fluorescent light bulbs using the results of a stated preferences study conducted in the Caribbean island nation of Saint Lucia. Geographic location, low income status, and age are found to affect willingness-to-pay for compact fluorescent lighting, while higher income status and other demographic variables appear to have minimal or no significant impacts. Energy efficiency knowledge is associated with increased willingness-to-pay for energy-efficient bulbs and with increased use of compact fluorescent lighting. Contrary to theoretical expectations, past purchase of compact fluorescent bulbs is found to have no impact on self-reported willingness to pay. We hypothesize that this null result is due to the recent emergence of low-cost, low-quality compact fluorescent bulbs in the Saint Lucian lighting market, which may be negatively influencing consumers' preferences and expectations regarding energy-efficient lighting. Findings support the argument that government-sponsored education and subsidy programs will likely result in increased use of energy-saving technologies in Saint Lucia. But such behavioral changes may not be sustained in the long run unless low quality bulbs – the “lemons” of the compact fluorescent lighting market – can be clearly identified by consumers.
This paper presents evidence that household energy use in Uganda conforms to the energy ladder theory. As household income increases, solid and transitional fuel use evolves in an inverse U manner, while electricity consumption shows a direct relationship with income. Public infrastructure provision, income, and education are the key variables which can be targeted to reduce household dependence on solid-fuels while increasing non-solid fuel use. While education and public infrastructure have varying impacts on rural and urban households' energy mix, these variables generally reduce rudimentary fuel use and increase modern fuel consumption. Timely investment in electricity infrastructure is necessary to cater for burgeoning electricity demand as households become affluent. Strategies for reforestation, dissemination of improved cookstoves, relieving supply side constraints for modern fuels, and staggered payment options to lower the cost of entry for modern fuels can improve Ugandan households' energy security.
The interest in the promotion of energy efficiency by utilities at the demand-side started in the seventies caused by the high prices of oil and suffered a drastic set back during the restructuring of the electricity sector. However, growing awareness on the positive effects of energy efficiency on the economy and on the environment, led many countries/jurisdictions to impose utilities’ engagement in the promotion of energy efficiency. In other countries/jurisdictions utilities encourage their customers to improve energy efficiency, on a non-mandatory basis. In this paper, the non-mandatory involvement of electric utilities in the promotion of energy efficiency at the demand-side is addressed. Some world-wide examples are given, detailing the Portuguese experience. Although this participation is important, it seems that countries/jurisdictions with regulatory impositions obtain more satisfying results.
State-owned Eskom has a near-monopoly on power generation in South Africa. Though one might think government control would make the business of managing power supplies easier, the story of Eskom's recent troubles shows that state ownership, in and of itself, is neither the problem nor the solution. More important than ownership structure are policy and planning decisions that take the long view. Eskom's cautionary tale should remind those involved in the power industry anywhere in the world that, to vary a disclosure from the financial sector that too few have paid attention to, past performance is not a guarantee of future success. 8 figs.
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