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This study report 'Planning for Efficient Dispatch' was developed within the framework of the project 'Variable Renewable Energy Integration and Planning: Pakistan' under a technical assistance project financed by World Bank in support of the Government of Pakistan. With the aim of being as close as possible to the reality in terms of constraints which cannot be influenced by the dispatcher, potential sources of such deviations have been eliminated in the model. For instance, demand, export to K-Electric, hydrology, VRE output, bagasse output, outages, and nuclearplant operations have been set to their actual historic values. To allow for this analysis and to reach the objectives, the assignment included engagement with the National Power Control Centre (NPCC) as well as technical support. This also included the general topic of VRE integration in support of the wider study.

Emissions --- Energy --- Energy Demand --- Hydro Power --- Power and Energy Conversion --- Renewable Energy --- Thermal Power

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The Peruvian power market was established in 1992, amid serious supply constraints and financially distressed power utilities. Since its inception, the market has been adapted by competitive market reforms and adaptations due to government-driven public policy objectives. This paper analyzes the experience of Peru with power markets, including market design, implementation, and outcomes. A cost-based power pool with locational marginal prices was established overnight, with bilateral contracts among market participants and regulated capacity payments. After an initial period of rapid investment, sluggish capacity additions and a prolonged drought in 2003-04 motivated the successful introduction of competitive supply auctions in 2006, to ensure that needed capacity additions were made to meet demand growth. Competitive auctions for renewable capacity have also been successful, attracting investment at falling prices. However, the market has been adapted by the government, pushing technology-specific auctions to develop a balanced mix of gas and hydro power generation, with additional costs passed through to final customers. As a result, supply is less prone to hydrological conditions, but it is now subject to gas transport constraints; prices are depressed at USD 9/megawatt hour; and the reserve margin increased to 81 percent in 2017. Overall, continuous adaptations to the Peruvian power market have delivered competitive outcomes, with concentration falling steadily and security of supply increasing over the past decade. However, the mixed approach of competitive forces and government-driven adaptations for public policy objectives calls into question the long-term efficiency of the market.

Competition --- Developing Countries --- Electricity Markets --- Emerging Markets --- Energy --- Energy and Environment --- Energy Demand --- Energy Policies and Economics --- Inflation --- Macroeconomics and Economic Growth --- Power and Energy Conversion --- Transport

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The Colombian power market was established in 1995, driven primarily by concerns about the reliability of supply in the largely hydro-based domestic power system. The power sector reform was expected to help avoid blackouts by attracting private investment and increasing the efficiency of existing capacity. However, two decades after its inception, the market has not been successful in providing reliable supply along competitive outcomes. This paper analyzes the experience of Colombia with power markets, including market design, implementation, and outcomes. A single-node, bid-based market was established overnight, with bilateral contracts among market participants (mostly short-to-medium term). The original regulated capacity payment was replaced in 2004 by a reliability market intended to ensure supply during tight hydrological conditions (mainly due to El Nino phenomena). However, the Colombian power sector is currently showing signs of structural weakness: the reliability market has shown dysfunctionalities, the government has intervened the market during critical situations, and concerns persist regarding market power exercise. The experience of Colombia is important for other developing countries, since it highlights the challenges of designing and implementing a power market that successfully provides reliability, competitive outcomes, and sustainability. Although key local hydrological conditions were considered in the design of Colombia's capacity market, the market had difficulties delivering intended outcomes due to design and institutional issues, particularly the lack of a comprehensive approach to gas supply and transport.

Competition --- Developing Countries --- Electricity Markets --- Emerging Markets --- Energy --- Energy and Environment --- Energy Demand --- Energy Policies and Economics --- Industry --- Power and Energy Conversion --- Transport

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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.

Electricity --- Energy --- Energy and Environment --- Energy Demand --- Energy Policies and Economics --- Energy Policy --- Health and Poverty --- Health, Nutrition and Population --- Power --- Power and Energy Conversion --- Renewable Energy --- Rural and Renewable Energy --- Rural Development --- Solar Energy --- Wind Power

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The report surveys the challenges facing Bangladesh's power sector today and makes recommendations for consideration by national policy makers. Its starting point is the Government's goal of universal access to electricity by 2021, when Bangladesh completes 50 years of independence. Bangladesh can justly be proud of its progress in providing power to its people over the past decade. Generation capacity has steadily grown from 5.5 GW in 2009 to more than 13 GW in 2017-an increase of 140 percent. Starting from levels of access to electricity below 50 percent, today access is around 80 percent, with a globally recognized off-grid rural Solar Home System (SHS) program contributing almost 14 percent of that total. Sector performance is better than that of larger countries in the South Asia Region on key dimensions-distribution and transmission losses (together around 14 percent) and collection efficiency (above 90 percent). Bangladesh was an early mover in initiating private power generation in the late 1990s. The independent power producer (IPP) contracts awarded at that time through a transparent competitive process brought it what remains even today some of the lowest cost power in South Asia. Power imports from India commenced in 2013 and are set to grow-they are a critical element of the Government's strategy to supplement domestic generation with other sources of supply. The country has also demonstrated impressive mobilization and institutional capacity in selected agencies, which it can leverage in its quest to rapidly achieve middle-income status.

Climate change --- Coal --- Electric power --- Electricity --- Energy --- Energy and environment --- Energy demand --- Energy efficiency --- Energy policies and economics --- Natural gas --- Oil and gas --- Power and energy conversion --- Power generation --- Renewable energy