Minding the gap: World Bank's assistance to power shortage mitigation in the developing world

Abstract

This paper describes the World Bank's technical assistance and lending efforts in support of developing countries facing power shortages. The paper reviews the World Bank's experience in helping governments to mitigate power shortages in Africa, South Asia, East Asia, and Latin America regions. The paper stresses the need to consider each power “crunch” on an individual basis, and describes the process used in diagnosing a shortage situation and prescribing mitigation strategies. Several brief case studies are presented, including Botswana, Brazil, Uganda, and South Africa. The political and customer-centric dimensions of power shortage mitigation are briefly described, with suggestions for minimizing the socio-economic impacts of power shortages on the urban and rural poors. The paper concludes that an integrated supply–demand portfolio approach works best, and within the portfolio a mix of market-based rationing, emergency mobilization of customer-owned generation, interruptible rates, load control, and energy efficient lighting should be sought. Although the best formulation will vary according to market structure, demand composition, and nature of the crisis, World Bank practitioners have found one program that works almost everywhere to produce fast and effective results – mass market Compact Fluorescent Lamp (CFL) replacement programs.