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This paper studies the financial viability of electricity sectors in 39 countries in Sub-Saharan Africa using an approach similar to that in an earlier study, the Africa Infrastructure Country Diagnostic. The quasi-fiscal deficit in each country is calculated under two scenarios: existing utility performance and benchmark utility performance. In the first scenario, only two countries have a financially viable electricity sector (the Seychelles and Uganda). Only 19 countries cover operating expenditures, while several countries lose in excess of USD 0.25 per kilowatt-hour sold. Quasi-fiscal deficits average 1.5 percent of gross domestic product, and exceed 5 percent of gross domestic product in several countries. In this context, it will be difficult for utilities to maintain existing assets let alone facilitate the expansion needed to reach universal access goals. The number of countries with a quasi-fiscal deficit below zero increases to 13 under the second scenario, and to 21 when oil price impacts are considered, indicating tariff increases may not be needed at benchmark performance in these cases. Combined network and collection losses on average represent a larger hidden cost and are less politically sensitive to address than underpricing, so could be a smart area for policy focus to reduce quasi-fiscal deficits. Underpricing remains an issue to address over the medium term, as service quality improves. With no changes in power mix, tariffs would need to increase by a median value of USD 0.04 per kilowatt-hour sold at benchmark performance, representing a 24 percent increase on existing tariffs. Most countries have improved or maintained performance, and relatively few countries have had declining financial viability.

Cost of Electricity Service --- Electricity Tariffs --- Electricity Utilities --- Quasi-Fiscal Deficit --- Reform --- Subsidies

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One of the contentious issues in electricity reform is whether there are significant gains from restructuring systems that are moderately well run. South Africa's electricity system is a case in point. The sector's state-owned utility, Eskom, has been generating some of the lowest-priced electricity in the world, has largely achieved revenue adequacy, and has financed the bulk of the government's ambitious electrification program. Moreover, the key technical performance indicators of Eskom's generation plants have reached world-class levels. Yet the sector is confronted today with serious challenges. South Africa's electricity system is currently facing a tight demand/supply balance, and the distribution segment of the industry is in serious financial trouble. This paper provides a careful diagnostic assessment of the industry and identifies a range of policy and restructuring options to improve its performance. It suggests removing distribution from municipal control and privatizing it, calls for vertical and horizontal unbundling, and argues that the cost-benefit analysis of different structural options should focus on investment incentives and not just current operating efficiency.

Balance --- Coal --- Coal Reserves --- Distribution Facilities --- E-Business --- Electricity --- Electricity Distribution --- Electricity Supply --- Electricity System --- Electricity Utilities --- Electrification --- Energy --- Energy Production and Transportation --- Environmental Performance --- Generation --- Investment --- Options --- Power --- Power Plant --- Power Plant Construction --- Power Sector --- Price --- Primary Energy --- Private Sector Development

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Recent developments in the natural gas industry warrant new analysis of related issues. Environmental, social, and governance (ESG) investments have accelerated the shift away from coal as the dominant source of electricity. Its low environmental impact, reduced volume, and broad availability make liquefied natural gas (LNG) a popular alternative, during this time of transition between traditional fuels and newer options. In the United States, the shale gas revolution has made natural gas a game changer. In this book, we focus on empirical analyses of the natural gas market and its growing relevance worldwide.

Economics, finance, business & management --- spillover effect --- market integration --- natural gas market --- time frequency dynamics --- BRICS --- exchange rates --- connectedness --- time domain --- frequency domain --- natural gas --- crude oil --- electricity utilities sector index --- time–frequency dynamics --- ESG --- renewable energy --- copula --- value-at-risk --- electricity --- spot --- futures --- transmission --- pipelines --- external cost --- health --- property damage --- bodily injury --- uncertainty --- insurance --- coal --- spillover effects --- dynamic approaches --- forecasting --- logistic regression --- random forests --- support vector machines --- US natural gas crises --- XGboost --- neural networks --- oil futures prices crashes --- foresting --- logistical regression --- extreme gradient boosting --- moving window --- SVAR --- oil price --- gas price --- US macroeconomic aggregates --- GDP --- CPI --- spillover effect --- market integration --- natural gas market --- time frequency dynamics --- BRICS --- exchange rates --- connectedness --- time domain --- frequency domain --- natural gas --- crude oil --- electricity utilities sector index --- time–frequency dynamics --- ESG --- renewable energy --- copula --- value-at-risk --- electricity --- spot --- futures --- transmission --- pipelines --- external cost --- health --- property damage --- bodily injury --- uncertainty --- insurance --- coal --- spillover effects --- dynamic approaches --- forecasting --- logistic regression --- random forests --- support vector machines --- US natural gas crises --- XGboost --- neural networks --- oil futures prices crashes --- foresting --- logistical regression --- extreme gradient boosting --- moving window --- SVAR --- oil price --- gas price --- US macroeconomic aggregates --- GDP --- CPI