Best practices for market based power rationing : implications for South Africa (English)

This briefing note captures lessons from international experience in dealing with power shortages including key options and issues for implementing a PCP in South Africa. This work was implemented in support of South Africa's Long Term Mitigation Scenarios...  See More + This briefing note captures lessons from international experience in dealing with power shortages including key options and issues for implementing a PCP in South Africa. This work was implemented in support of South Africa's Long Term Mitigation Scenarios and has helped highlight many of the critical challenges facing the country in its efforts to reduce its energy intensity and mobilize cleaner energy sources. The 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.  See Less -