Publication: From Subsidy to Sustainability: Diagnostic Review of Sudan Electricity Sector
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2019-06-10
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2020-05-05
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Sudan’s electricity sector is operating efficiently from the technical stand point, compared to regional standards. However, the sector faces many of the operational challenges in the management and financial areas, common to countries in the region. The most urgent issue facing the sector is financial sustainability. Another issue is that the subsidy does not reach the poor due to their limited access to electricity. Most electricity access is provided for urban and relatively rich segments of the population. Electricity access in Kordofan and Darfur regions is particularly limited. The sector has been connecting a significant number of customers to the grid, but the increased access has been mostly offset by population growth. In the coming years, sector costs will likely increase exponentially and may trigger a power crisis. A range of policy measures can mitigate increases in sector costs, including: (a) using low-cost power from Ethiopia and Egypt; (b) redirecting available investment capital away from thermal generation to domestic solar and wind generation; and (c) curbing demand growth through efficiency measures and price signals. Interim tariff targets will be set by the Government of Sudan to guide the short-term tariff transition. Finally, the sector needs to strengthen its planning capacity and corporate governance structure. Given the current volatility in political and economic circumstances, short-term policy actions are critical to pave the path for sector recovery. Additional analysis and technical assistance to help the sector recovery will be carried out to inform policy decisions by the Government of Sudan and engagement by other development partners. In the next phase of engagement, World Bank will review the energy sector in totality with specific focus on fuels.
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“World Bank. 2019. From Subsidy to Sustainability: Diagnostic Review of Sudan Electricity Sector. © World Bank. http://hdl.handle.net/10986/33702 License: CC BY 3.0 IGO.”
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