Publication: Islamic Republic of Iran : Power Sector Note
Loading...
Date
2007-01-09
ISSN
Published
2007-01-09
Author(s)
Editor(s)
Abstract
Over the past decade, the Iranian electricity sector's ability to supply reliable service has come under increasing pressure. This is evidenced by more frequent gas supply constraints to generation plants, high levels of debt and increasing losses in the network. The key roots of the problems in the sector are the under-pricing of natural gas which fuels the majority of the power generation, and the low retail electricity tariffs which lead to high per capita consumption of electricity and thus large investment requirements in new generation capacity to keep up with the demand. The Government of Iran is aware of the challenges and is pursuing a number of reforms to improve the performance of the sector, including private sector participation in the generation of electricity and implementation of a power pool with a view of developing a competitive market. While these reforms will eventually contribute towards a more sustainable sector, their implementation and success will require tackling the under-pricing of natural gas and electricity. Without tackling these issues, the impact of reform efforts will remain limited and to some extent academic, and run the risk of increasing the Government's fiscal exposure as under-writer of the policies and transactions in the sector. This Note reviews some key challenges in the sector and highlights their strategic implications. The Note also provides some suggested next steps in the form of a "road-map" to address these issues.
Link to Data Set
Citation
“World Bank. 2007. Islamic Republic of Iran : Power Sector Note. © http://hdl.handle.net/10986/19639 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Islamic Republic of Iran : Power Sector Note(Washington, DC, 2007-01-09)Over the past decade, the Iranian electricity sector's ability to supply reliable service has come under increasing pressure. This is evidenced by more frequent gas supply constraints to generation plants, high levels of debt and increasing losses in the network. The key roots of the problems in the sector are the under-pricing of natural gas which fuels the majority of the power generation, and the low retail electricity tariffs which lead to high per capita consumption of electricity and thus large investment requirements in new generation capacity to keep up with the demand. The Government of Iran is aware of the challenges and is pursuing a number of reforms to improve the performance of the sector, including private sector participation in the generation of electricity and implementation of a power pool with a view of developing a competitive market. While these reforms will eventually contribute towards a more sustainable sector, their implementation and success will require tackling the under-pricing of natural gas and electricity. Without tackling these issues, the impact of reform efforts will remain limited and to some extent academic, and run the risk of increasing the Government's fiscal exposure as under-writer of the policies and transactions in the sector. This Note reviews some key challenges in the sector and highlights their strategic implications. The Note also provides some suggested next steps in the form of a "road-map" to address these issues.Publication Ukraine : Investment Plan for the Clean Technology Fund(Washington, DC, 2010-01)This report describes the Ukraine Investment Plan for the Clean Technology Fund. Ukraine is a lower middle income country, with GDP per capita of US$1,940 in 2006. After a decade of steep economic decline, economic growth rebounded in 2000 and GDP grew by about 7.5 percent per year on average until 2007. To recover its economic growth and improve competitiveness, Ukraine will need to address a combination of challenges. Improving the energy efficiency of the economy and thereby reducing its vulnerability to further import price shocks, as well as modernizing the energy sector to make it more efficient, are among those challenges. The Energy Strategy of Ukraine for the Period until 2030, adopted in 2006, provides a platform for addressing these issues over the three distinct phases of development envisaged for the country. Energy and industry are the priority sectors for intervention as they account for 69 percent and 22 percent of country s GHG emissions, respectively The interventions with the highest potential for reducing GHG emissions in Ukraine are: (1) energy efficiency; (2) increased use of nuclear power; (3) implementation of high efficiency combustion technologies and carbon capture and storage (CCS) for new coal-fired plants; and (4) renewable energy.Publication Uzbekistan : Energy/Power Sector Issues Note(World Bank, Washington, DC, 2013-06)This note focuses on the energy and power sector in Uzbekistan with the purpose of identifying some of the key issues faced by the sector and outlining potential solutions. In particular, the note aims to inform the Government thinking by providing input on priorities in the sector. The note also outlines potential solutions the Government may want to consider to address the identified challenges in the short and longer time and highlights the areas where the Government can start acting immediately. The analysis is based on the information and data provided by the Government during preparation of the Bank's investment lending operations, other analytical work as well as data/information collected from public sources. The note is structured as follows: section one discusses the importance of the energy sector to the economy and provides an overview of the sector. Section two provides a more detailed overview of the power sector. Section three identifies the principal challenges in the power sector. Section four proposes potential solutions to address these challenges. Finally, section five outlines a potential role for the World Bank in supporting the Government to address power sector challenges.Publication Caribbean Regional Electricity Supply Options : Toward Greater Security, Renewables and Resilience(World Bank, 2011-01-01)The Caribbean region continues to be plagued by high and volatile fuel prices, with limited economies of scale or diversity in electricity supply. Although several studies have examined alternative resource options for the region, they often only consider solutions for individual countries in isolation. When one looks at the Caribbean, however, it is apparent that the short distances between islands and market sizes present opportunities to benefit from regional solutions. Indeed, increasing interconnection in the Caribbean could pave the way for greater energy security, a larger use of renewable and enhanced climate resilience. The idea of regional interconnections is not new: gas pipelines are widely used to interconnect gas supply with gas demand, and electricity market interconnections have become the norm around the world. However, this option does not appear to have received the attention it merits in the specific context of the Caribbean. While this study analyzes a small subset of the imaginable regional energy options for the Caribbean, it shows that regional solutions warrant further study. This synthesis report builds from the technical report that the World Bank commissioned from Nexant, entitled-Caribbean regional electricity generation, interconnection, and fuels supply strategy. It analyzes a range of regional options. Although further analysis is required, the hope is that this synthesis report will help to fuel the conversation about interconnected development pathways for the Caribbean.Publication Tajikistan's Winter Energy Crisis : Electricity Supply and Demand Alternatives(Washington, DC: World Bank, 2013)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, technical and institutional capacity of the Tajik power sector and prepare the GoT for undertaking a major expansion of power supply capacity. The study excludes large hydropower plants with storage, given their complexity and global experience that such projects are subject to delays. The winter electricity shortages are caused by a combination of low hydropower output during winter when river flows are low and high demand driven by heating needs. The GoT should focus its immediate attention on three ways to eliminate the current winter power shortages: 1) ambitious energy efficiency plans to reduce uneconomic power usage; 2) new dual-fired thermal power supply to complement the existing hydropower supply during winter; and 3) increased energy imports to leverage surplus electricity supply in neighboring countries.
Users also downloaded
Showing related downloaded files
Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.