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2019 (3)

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Book
Integrating Variable Renewable Energy in the Bangladesh Power System : A Planning Analysis
Authors: --- ---
Year: 2018 Publisher: Washington, D.C. : The World Bank,

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Abstract

Integration of large-scale variable renewable energy (VRE) generation resources-wind and solar-into national grids has been gaining importance as costs of these technologies, especially that of solar, continues to fall rapidly. However, there continues to be a lack of a framework to systematically analyze the role played by large-scale VRE integration for most developing countries. This study develops such a framework and applies it to analyze VRE policies in Bangladesh. The study uses a least-cost planning approach to assess the volume of solar and wind that can technically and economically be integrated in the power system, accounting for spinning reserve generation capacity requirements and adequacy of transmission capacity. The study shows that solar and wind can provide a significant share of the 13 to 21 GW of new capacity needed by 2025 to meet rapidly growing electricity demand, although most of it does not pass the cost/benefit test in the near term till 2022. Efforts are also required to cope with what otherwise would be a large and costly increase in on-demand ("spinning") reserve capacity. The analysis demonstrates how an investment strategy to cover peak demand, and prudent changes in system operational practices, allow for the system to provide the needed reserve capacity without a prohibitive increase in system costs. In addition, the study examines the adequacy of transmission capacity for the first large-scale solar and wind project in Bangladesh.


Book
Lessons from Power Sector Reforms : The Case of Morocco
Authors: ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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Morocco charted its own distinctive path of power sector reform. It selectively introduced private sector participation for generation capacity expansion and electricity distribution, while retaining a strong, state-owned and vertically-integrated national power utility operating as a single buyer at the core of the sector. Until recently, the country eschewed an independent regulatory entity. The power sector has been guided by strong top-down policy mandates that have served to align the disparate actions of political parties and sector institutions. Ambitious targets for electricity access, liberalization, and renewable energy investments were conceived as an integrated approach to contribute to economic development by relieving fiscal pressures, reducing external dependence on fossil fuels, and positioning the country as a regional leader in renewable energy. The results have been impressive. Since 1990, Morocco has more than tripled its power supply, while growing renewable energy to account for one-third of the total and relying on the private sector to supply just over half of the electricity generated. Rural electrification has accelerated rapidly from 18 percent in 1995 to virtually 100 percent in 2017. While operational efficiency has been broadly adequate, performance has fluctuated over time. Moreover, the sector's achievements through this selective approach to reform have come somewhat at the expense of the financial viability of the incumbent utility, the National Office for Electricity and Water (ONEE), which has suffered from lack of cost-reflective tariff-setting and an array of entrenched cross-subsidies. Other vulnerabilities include the continued but declining dependence on electricity imports, external price volatilities of imported fossil fuels, and a territorialized electricity distribution model that could be disrupted by grid integration of renewable energy.


Book
Learning from Power Sector Reform : The Case of Uganda
Authors: ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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Uganda's power sector structure is among the most sophisticated in Sub-Saharan Africa, and Uganda is one of only a handful of countries in the region where tariffs are close to being cost reflective. While reforms were swift and comprehensive, following the 1999 Electricity Act, significant difficulties were encountered along the way that prevented the benefits of reform from materializing until much later. The failed first attempt with the Bujagali Hydropower independent power producer left the country heavily exposed to the 2005/06 and 2010/12 droughts, which in turn created difficulties for the new private distribution utility, Umeme, and led to a relaxation of the regulatory performance targets for the concession. This situation led to a buildup of frustration with the new operator and the launch of two public enquiries, which recommended termination of the concession. In 2012, with the easing of drought conditions and the completion of the Bujagali Hydropower Project following a second independent power producer arrangement, there was improvement in the availability of power. This made it possible to set more demanding performance targets for the concessionaire, Umeme, which fed through into substantial improvements in operational efficiency and accelerating service coverage. Although the reform model was eventually able to deliver results, the associated cost was comparatively high. Furthermore, the extension of the private concession model to financially unviable rural areas did not prove to be successful. Access rates began to pick up only following the adoption of a revised approach in 2012, built around government-led and donor-funded expansion of rural networks.


Book
Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa
Authors: ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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Improving electricity access in low-income countries is a challenging problem because of the high costs of grid extension and low demand for grid electricity in rural areas. This study elucidates these constraints by analyzing poor households' willingness-to-pay for different types of electricity access, including lower cost off-grid technologies. The theoretical model illustrates how consumer preferences, operational and capital costs of electricity service delivery, and availability of power supply affect households' decisions to acquire electricity technology. These effects are then assessed empirically by estimating beneficiaries' willingness-to-pay for electricity in three low-income countries that have pockets of households living in extreme poverty-Burkina Faso, Senegal, and Rwanda. Consistent with the theoretical model, the results indicate very low household willingness-to-pay for electricity access, and that willingness-to-pay diminishes as households' income declines. Therefore, the study recommends concentrating in the nearer term on ultra-low-cost decentralized off-grid solar technologies in programs to provide household electricity to the poor in rural areas.


Book
How Would Cross-Border Electricity Trade Stimulate Hydropower Development in South Asia?
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Year: 2018 Publisher: Washington, D.C. : The World Bank,

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This study examines the importance of enhancing the cross-border transmission interconnections and regional electricity trade to promote hydropower in the South Asia region and quantifies the potential of hydropower development and trade under alternative scenarios. While South Asia is endowed with large (> 350 gigawatts) hydropower potential, only around 20 percent has been exploited so far. This study shows that development of regional electricity markets through expanded cross-border transmission interconnections and regional electricity trade agreements is needed to benefit the region from the exploitation of the untapped hydropower resources. It also finds that development of hydropower in the region would increase by 2.7 times over the next two decades if the region could facilitate an unconstrained flow of electricity across the borders in South Asia. If a moderate carbon tax is added on top of that, hydropower capacity in 2040 could be more than three times as high as the current level.

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