Publication: Managing an Electricity Shortfall : A Guide for Policy Makers
Loading...
Files in English
1,016 downloads
1,035 downloads
573 downloads
617 downloads
Date
2010-11-01
ISSN
Published
2010-11-01
Author(s)
Editor(s)
Abstract
Economic growth in Central America has increased rapidly over the past 20 years. Currently, the gross domestic product (GDP) per capita for the six Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama averages approximately US$3,600. However, masked behind this average figure is a Sub region of 40 million people with a wide variety of income, where more than half of the population lives in poverty. Energy in general and electricity specifically are critical for economic development. Electricity is needed to power the machinery that supports income-generating opportunities. Capital (both domestic and foreign) is attracted to countries that are able to offer an affordable, reliable source of electricity for businesses. Although the individual electricity markets of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama are not large, together the six countries collectively generated nearly 38 Terawatt-hours (TWh) of power, equivalent to around 70 percent of the annual electricity supply of a medium-sized country in Latin America. The World Bank has undertaken a series of studies to better understand the energy challenges facing these six Central American countries that are to be joined by Sistema de Interconexion Electrica para America Central (SIEPAC) and to identify actions to promote the sound development of the sector. These studies have been prepared by a team of policy experts, engineers and economists as part of an integrated series entitled the Central America programmatic energy studies, with a primary focus on the electricity subsector. The initial phase of this programmatic series includes three modules. The first module is general issues and options; second module is managing an electricity shortfall; and the third module is structure and regulatory challenges. This particular document, the managing an electricity shortfall module, provides a framework for action and a broad menu of options available to policy makers to bridge a supply-demand gap in the short- to medium-term.
Link to Data Set
Citation
“World Bank. 2010. Managing an Electricity Shortfall : A Guide for Policy Makers. © World Bank. http://hdl.handle.net/10986/2999 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 Tajikistan’s Winter Energy Crisis : Electricity Supply and Demand Alternatives(World Bank, Washington, DC, 2012-11)Reliable power supply is critical for Tajikistan's economy and poverty reduction goals. Without reliable, affordable electricity throughout the year, Tajikistan's businesses cannot invest, operate and create jobs; hospitals and schools cannot function fully or safely with frequent power cuts during winter; citizens suffer indoor air pollution from burning wood for heating and cooking. Electricity also powers the country's two largest exports: aluminum and agricultural produce, which account for about 30 percent of Tajikistan's annual gross domestic product and almost 45 percent of export earnings. Currently, electricity is the cheapest available resource to heat homes so the residential and commercial sectors are highly dependent on electricity for heat as well as lighting and industrial processes. The Government is responsible for guiding programs that keep power supply apace with demand. The purpose of this study is to assist the Government in further defining ways to meet growing demand for electricity in Tajikistan, with a particular focus on the recurring winter shortages which amount to about 24 percent of winter demand. The study also examines the potential benefits of power exports, particularly during summers when hydropower plants spill energy. The study explores a range of alternatives to meet electricity demand as quickly as possible and develop a short term plan of action to alleviate the social and economic costs of winter shortages. The study focuses on multiple initiatives that can be started immediately and simultaneously, and will establish fundamental components of energy security for Tajikistan, namely: to moderate unsustainable demand growth, protect the current asset base, and remedy the thermal/hydro imbalance in the energy sector.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.Publication Best Practices for Market-Based Power Rationing : Implications for South Africa(Washington, DC, 2011-06)This report summarizes South Africa's energy challenges, efforts to establish a low-carbon energy strategy through the Power Conservation Program; and several World Bank backed initiatives to help the country save energy, reduce greenhouse gas emissions, and help South Africa cope with a power crunch. The Power Conservation Program has proved its effectiveness. The economic benefits of the program include the reduced need for dispatching expensive, oil-fired power plants. The national electric utility, Eskom, has maintained the Power Conservation Program as an option that can be expanded beyond the large industrial customer base, if further power shortages arise due to an imbalance between electricity supply and demand. The system is well understood among Eskom's staff, integrated into business processes, and it can be adjusted to accommodate a larger customer base, if necessary. It is an excellent hedging mechanism that can help Eskom to manage power system reliability if the reserve margins deteriorate in the future.Publication Greenhouse Gas Analysis at the World Bank(Washington, DC, 2012-06-21)This report builds on reviews of available methodologies, tools, and practices for greenhouse gas (GHG) analysis, and summarizes the outcomes of pilot studies. It discusses the issues and challenges associated with GHG analysis for energy, transport and forestry projects such as setting project boundaries and accounting for indirect emissions. To do this it draws on existing United Nations Framework Convention on Climate Change (UNFCCC) methodologies, IPCC National GHG Inventories guidelines, the GEF and CDM/JI methodological frameworks, the GHG Protocol Initiative standards, World Bank Environment Department papers, and methodologies used by other international finance institutions. The outcome of fourteen pilots provides a rich and varied set of experiences in terms of approaches taken, and application of tools and methodologies. Assessing GHG emissions from investment operations is becoming common practice for mostmultilateral and bilateral institutions, and the international financial community in general. The existing methodologies and tools could be applicable to a significant majority of the investment lending portfolio in energy, transport, and forestry. The pilot studies served to generate interest from the clients as they were linked to investment lending operations.Publication Romania : Energy Sector Rapid Assessment(Washington, DC, 2013-01)The energy sector rapid assessment was conducted by the World Bank for the Government of Romania, as part of an advisory services program on climate change and low carbon green growth. The objective of this assessment is to identify climate change related investment priorities and necessary implementation support for the 2014-2020 operational programs, with a view to achieving the European Union (EU) 2020 targets and laying a foundation for continued de-carbonization of the energy sector. This rapid assessment focuses on climate change mitigation actions in power and heat generation and in energy use in manufacturing, residential, public, and commercial sectors. Energy use and efficiency in the transport sector is studied in a separate transport sector rapid assessment. It includes in-depth investigation of the main energy end-use sectors or subsectors, low-carbon energy supply optimization based on long-term energy demand patterns and trends, and the design and approaches of key energy efficiency intervention programs, such as thermal retrofit of residential and public buildings and economization and modernization of district heating systems.
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 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.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 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.