Publication: The Value of Trade and Regional Investments in The Pan-Arab Electricity Market: Integrating Power Systems and Building Economies
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2021-10
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2021-11-22
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Energy demand in Arab countries continues to grow at a higher rate than economic growth. Meeting national electricity demand and exploiting their significant renewable energy resources (particularly, solar and wind) in a sustainable manner is a common challenge across all Arab countries. A number of analyses have pointed out that such countries would benefit greatly from the increased integration of their power systems, and the resulting opportunities for electricity trade. This study quantifies the potential economic benefits that a Pan-Arab Electricity Market (PAEM) could bring if the countries across the Middle East and North Africa (MENA) were engaged in full electricity trade on a commercial basis. The World Bank’s Electricity Planning Model (EPM) was used to prepare the region’s least-cost capacity expansion and dispatch scenarios optimizing the regional power systems in the period 2018–2035.
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“World Bank. 2021. The Value of Trade and Regional Investments in The Pan-Arab Electricity Market: Integrating Power Systems and Building Economies. © World Bank. http://hdl.handle.net/10986/36614 License: CC BY 3.0 IGO.”
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The study analyzes the potential of this new policy to help Mexico in its energy and environmental goals. It is organized into five chapters: (i) Introduction; (ii) Mexico s Policy Context for Incorporating Externalities; (iii) Valuation of Externalities; (iv) Internalizing Externalities; and (v) Conclusion. Included are four annexes: Method to Value Externalities for Mexico's Electricity Generation; Investment Plan in the Power Sector in Mexico; Modeling Framework and Methodology; and Project Valuation with Environmental Externalities.
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