Integration of large-scale variable renewable energy (VRE) generation resources -- wind and solar -- into national grids has been gaining importance as costs of these technologies, especially that of solar, continues to fall rapidly.
... See More + However, there continues to be a lack of a framework to systematically analyze the role played by large-scale VRE integration for most developing countries. This study develops such a framework and applies it to analyze VRE policies in Bangladesh. The study uses a least-cost planning approach to assess the volume of solar and wind that can technically and economically be integrated in the power system, accounting for spinning reserve generation capacity requirements and adequacy of transmission capacity. The study shows that solar and wind can provide a significant share of the 13 to 21 GW of new capacity needed by 2025 to meet rapidly growing electricity demand, although most of it does not pass the cost/benefit test in the near term till 2022. Efforts are also required to cope with what otherwise would be a large and costly increase in on-demand ("spinning") reserve capacity. The analysis demonstrates how an investment strategy to cover peak demand, and prudent changes in system operational practices, allow for the system to provide the needed reserve capacity without a prohibitive increase in system costs. In addition, the study examines the adequacy of transmission capacity for the first large-scale solar and wind project in Bangladesh.
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Policy Research Working Paper WPS8517 JUL 11, 2018
Fondo de Estabilización Energética (FEE) is a mechanism established by the Government of Uruguay to reduce the impact of drought on Government and electricity utility finances.
... See More + IBRD Investment Project Financing with an innovative structure boosts FEE’s liquidity with a view to easing cash crunch and improving service delivery.
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Evaluation tools are essential for making decisions for selecting about projects. Comparing the total costs (investment and operation) of a project with its benefits allows analysts to decide if that project will make a true contribution to the wealth of the country.
... See More + Many developing countries show a lack of modern procedures and techniques for making the process of selecting public investment projects (PIPs) for implementation efficient enough. The provision of basic infrastructure facilities such as roads, water, electricity, education and telecommunication, among others, is the key to the development of the country, and is fundamental to the creation of a strong private sector. In this context, the proper evaluation of previous initiatives is essential in avoiding past mistakes and to enable us to learn ‘from experience’. Project evaluation allows us to: i) Identify those criteria for investment policies that maximize social welfare; stop ‘bad projects’ and promote those that are ‘good’; define whether the public or private sector should implement the project; establish agreements for desirable cost recovery; and assess their impact on the environment, regional development and poverty, among other things. The document is divided into five chapters. Chapter two describes the scope of projects that increase electricity outputs in Kurdistan. Chapter three lays out the analytical framework for this simplified methodology. This chapter familiarizes the project sponsor and project analyst with the basic concepts of the financial and economic analysis of electricity projects. Chapter four is devoted to project preparation and analysis. An integrated financial, economic and uncertainty analysis must be carried out for new electricity projects on the network in order for alternatives to be compared and ranked according to their economic net benefits. Chapter five lays out the basic concepts for allocating the limited budgetary funds between different alternative electricity projects. This chapter helps to establish an economically sound balance between rival spending alternatives. Chapter six presents final comments.
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The development objective of the Electricity Access Expansion Project for Niger is to increase access to electricity in Niger. The project comprises of two components.
... See More + The first component, extension and reinforcement of distribution systems will support the expansion, reinforcement, densification, and rehabilitation of medium and low voltage (MV and LV) distribution systems to allow the connection of 60,000 new connections in seven major urban areas (Niamey, Dosso, Maradi, Zinder, Agadez, Tahaoua, and Tillabery). The second component, strengthening institutional capacity in the electricity sector will finance capacity building activities for Ministry of Energy and Petroleum (MEP) as well as Nigelec. In addition, it will support Nigelec in project implementation. It consists of following three sub-components: (i) technical assistance to MEP; (ii) technical assistance to Nigelec; and (iii) project management.
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Unreliable electricity supply hinders economic growth in low-income countries. The private sector can play a significant role in supporting national power goals through small-scale alternative private supply of power, or APS.
... See More + A World Bank Group report found that certain APS models may provide the most cost-effective way of supplying power, and in many cases prove a more practical way of increasing access to reliable electricity. This note discusses the models of APS, the conditions when each is appropriate, and the financial and regulatory support that can attract investment for these projects.
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A scenario with higher oil prices has important implications for diverting from oil-based technologies to renewables, as well as gas, coal, and nuclear alternatives.
... See More + By 2030, energy demand in Latin America and the Caribbean (LAC) is expected to double from 2008 levels. A key issue is deciding on the most appropriate mix of fuels for power generation, given the various prices of energy sources and technologies, as well as availability of renewable energy. The study's broad aim is to evaluate the impact of higher oil prices on the cost of generating electricity in countries of the LAC region so that better-informed energy policy planners can buffer future adverse effects. The study defines high oil prices as those above United States (U.S.) $100 per barrel. This price is considered a reasonable starting point for discussion given the recent range in oil prices, which averaged $95 a barrel in 2011. A price of $150 per barrel is defined as considerably high yet plausible given historical and current price levels, available forecasts, and other potential price drivers. The study's specific objectives are to: (i) analyze the economic effects of higher oil prices on LAC countries, particularly oil importers; (ii) assess the short-term impact on electricity generation costs based on the composition of generation matrices across countries of the region; and (iii) quantify the long term impact on electricity costs if countries modify the composition of their generation matrices in response to higher oil prices. This report is organized as follows: chapter one gives introduction. Chapter two presents the framework for analyzing the impact of higher oil prices, including an overview of recent price trends, major drivers of oil and gas prices, and a medium-term scenario under which higher prices might occur. Chapter three analyzes the impact of higher oil prices on LAC countries. Chapter four focuses on the short-term impact of higher oil prices on the electricity sector and the potential impact on the cost of generation, depending on the planning decisions made for future electricity generation. Finally, chapter five offers policy makers recommendations on the relevance of considering the potential impact of higher oil prices on countries' fiscal and trade balances, the cost of electricity to final consumers, and the impact that such cost may have on the competitiveness of their productive sector.
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Energy Study 85008 DEC 01, 2013
Yepez-Garcia, Rigoberto Ariel; Portes, Luis San Vicente; Garcia, Luis EnriqueDisclosed
The objectives of the First Phase of the Adaptable Program Loan (APL) for the Water and Sanitation in Tourist Areas Project for Dominican Republic are: (i) strengthening and consolidating the policy framework of the water and sanitation sector in the Dominican Republic; (ii) improving and expanding access to sanitation and wastewater treatment and disposal services in the Puerto Plata region; (iii) improving the financial and operational performance of La Romana Water and Sewerage Company, the region's water utility; and (iv) enhancing operational and commercial performance of other regional utilities and preparing them to participate in the second phase of the Program (APL II).
... See More + This restructuring paper reflects the following changes with regards to the closing date and other features of the DO APL1 Water and Sanitation in Tourist Areas, (the Project), loan 7680-DO (P054221) requested by the Borrower: (a) extension of the loan's closing date from September 30, 2013 until June 30, 2015 to enable the completion of ongoing contracts; (b) modifications to the project's scope and activities, which will consequently impact the project indicators. These changes do not alter the main objectives or the structure of the components defined previously in the loan agreement; and (c) reallocate category loan allocations for Loan No. 7680-DO to account for actual expenditures.
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On four remote islands in the Philippines, small power projects are making a big difference in people's lives. International Finance Corporation (IFC) helped the Government attract private investment in off-grid power generation, which will provide reliable and cheaper electricity to hundreds of thousands of people.
... See More + The agreements were signed September 2005 and May 2007.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) daily economics and financial market commentary newsletter are as follows: financial markets; high-income economies; and developing economies.
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Newsletter 74735 DEC 18, 2012
Dennis, Allen; Kim, Eung Ju; Mohapatra, Sanket; Vashakmadze, Ekaterine T.Disclosed
The development objective of the Ethiopia/Nile Basin Initiative: Ethiopia-Sudan Interconnector Project is to improve the effectiveness of the power systems in the Eastern Nile region by promoting regional power trade through the establishment of coordinated planning and the erection of transmission interconnections in the context of multi-purpose water and energy resources development in the region.
... See More + The closing date for the project will be extended by one year from June 30, 2012 until June 30, 2013. This project was approved on December 20, 2007 with a closing date of December 31, 2011. At the request of the Government of Ethiopia, the original closing date was previously extended to the current closing date of June 30, 2012. With this second extension of the closing date the credit will be extended cumulatively for eighteen months. The transmission line construction planned under the project has been completed and the transmission line has been commissioned. Three substations planned under the project are almost complete. The project performance is currently rated as moderately satisfactory given the delays in construction. The project development objectives continue to be achievable. The extension is necessary to allow sufficient time to the implementing agency to complete project construction activities. The substation contractor has not been able to transfer funds to the equipment manufacturers due to reasons beyond its control and is considered as force majeure. Recently, the implementing agency Ethiopian Electric Power Corporation (EEPCo) and the contractor reached agreement to amend the existing contract arrangements such that EEPCo could sign direct contracts with the manufacturers, and thus ensure payment and supply of the equipment to the project site. Due to this contract amendment and the ensuing delay in completing construction, the implementing agency requires additional time to complete the project construction works. Based on the revised implementation plan submitted by EEPCO, the project works are expected to be complete by June 30, 2013. There is no audit report outstanding for this project and the last audit was found satisfactory based on an action plan to remove audit qualifications.
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The Nepal Electricity Corporation (NEC) was formed in 1962 with limited functions of operation andmaintenance of Power Plants and consumer services.
... See More + At the time of establishment, NEC had installedcapacity just over 100 MW and a small consumer base. The Nepalese Electricity market was understate monopoly till 1984, being exercised through the Electricity Department (ED) of GON, Nepal Electricity Corporation (NEC) and different special purpose development committees to constructhydroelectric projects. Planning and some development works were taken up by ED and majordevelopment works were taken up by specific development committees whereas operation andmaintenance of the generation, transmission and distribution and supply businesses were taken up bythe NEC. The Nepal Electricity Authority (NEA), the key body governing the power sector in Nepal has been under severe financial strain since the last 5 years and its ability to pay is a cause of concern that may affect many of the upcoming projects going forward. . The ongoing power crisis in Nepal has been hampering Nepal’s economic development with over 14 hours power cuts seasons. The recent growth in generation capacity has been unable to keep pace with the demand and thecountry faces widespread outages, particularly in the lean hydro seasons. Even though the electrification level is poor, it is expanding, placing burdens on the NEA operationsand finances. NEA has not had the benefit of any tariff increases in the past ten years even thoughthe cost of service delivery has gone up substantially. However, there are several aspects that need to be additionally incorporated to ensure that NEA not only recovers from the current conundrum but it also able to effectively perform in view of the future changes being witnessed in the Nepalese Power Sector. Keeping this an AF-Mercados EMI was entrusted to prepare a report that brings to picture these aspects along with their implications in the long run.
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Egypt’s first public-private partnership will have a major impact on the quality of basic services in a satellite city on the outskirts of Cairo.
... See More + With IFC’s help, the government has awarded a land-mark concession for a wastewater treatment facility that will improve sanitation services in New Cairo, as well as accommodate projected population growth. The project was awarded in June 2009.
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