Electricity Sector Reform Research Articles

From currents to controversies: Unveiling performances of and perceptions on China's investments in the Philippine grid

The electrical grid system is a technology and a complex amalgamation of various factors, including geography, relationships, institutions, and socio-political-economic influences. Although China's involvement in international grids has primarily been analysed from the political economy perspective, little attention has been given to its impact on the electricity systems of host countries and how it affects their performance. This article addresses this gap by combining insights from international relations, political economy, and electricity systems transitions to analyse databases, news accounts and interview data on the performance and perceptions of energy actors regarding China's involvement in the Philippine electricity grid. Dissatisfaction with delays in project implementations, declining contributions to the development of in-house technological capabilities of the national grid company and transmission lines, diversification of local economic elites and oligarchs, and a lack of transparency have intensified mutual distrust between the Chinese grid company and prominent energy actors in the Philippines and failed to mitigate national security concerns. Our findings imply that changes in the constellation of local energy actors amid the electricity sector reform and integration of renewable energy in grids affect the role of the grid and justification for international grid investors. The perception of unsatisfactory performances raises concerns about national security during the worsening of bilateral relations.

Policy legacies and energy transitions: Greening policies under sectoral reforms in Argentina and Chile

Under what conditions do greening policies lead to a fast deployment of solar and wind energies? Environmental economics assume that market factors and technological innovations are the main drivers of energy transitions. While these assumptions sometimes hold for well-functioning markets; in emerging economies, the combination of scarce capital, weak institutions, and market distortions creates specific challenges that make their paths to clean energies different from those of developed states. I analyze greening reforms of the electricity sector in Argentina and Chile, exploring instances of success and failure. Using archive data and interviews to stakeholders, I explain how previous sector structures created different market distortions that hindered an effective electricity transition even in the context of significant cost-savings from investment in new technologies. Successful greening policies entailed broader electricity-sector reforms that removed previous binding constraints and restructured incentives for key private-sector stakeholders. I corroborate this argument by employing synthetic control methods to evaluate policies’ impact. I show that broad greening policies led to a significant penetration of renewable energies: by 2020 the share of solar and wind energies in Argentina and Chile were about 7.3% and 13.6% higher than in the counterfactual scenarios in which the greening reforms had not occurred.

Understanding institutional layers and modes of change for energy transitions: Analysis of Norway's electricity sector reforms

AbstractInstitutions have significant implications for whether and how energy systems restructure, evolve, and successfully transition. Yet, literature analyzing energy sector reforms often approach transitions from economic or technical perspectives, with much less attention to the underlying roles and influences of institutions. This paper explores the roles and influence of institutions on the speed, direction, timing, and sequence of energy transitions. A conceptual framework integrating the hierarchy of institutions with an historical institutionalist approach is developed and applied to explore transitions in Norway's electricity sector as a case study. Results show that conversion followed by layering emerge as the dominant modes of institutional change in Norway's electricity sector reform, illustrating the importance of alignment between institutions in creating the conditions for large‐scale energy transitions and the importance of boundaries to maintain alignment between levels of institutions. Governments can minimize potential gaps between transition intentions and outcomes through effective conversion and layering of institutional arrangements, but layering challenges emerge when institutional change introduces new actors or energy arenas to existing policy paradigms.

Electricity sector reforms and cost efficiency: The case of small electricity systems in Sub-Sahara Africa

The financial viability of Sub-Sahara Africa (SSA) electricity sectors has become a central energy policy issue in recent years. This follows persistent under-recovery of costs which are amongst some of the highest in the world. Discussions, however, focus on tariff and utility reforms and inadequately on costs efficiency and the role of broader sector reforms in persistently high costs. Through a synthesis of reform theories and case studies and using small electricity systems as a surrogate for liberalized electricity sectors without competitive markets, this paper examines the connection between sector reforms and costs. It brings an economic perspective to the discussion on utility financial performance in SSA electricity systems and the need for a holistic policy approach for sustainable cost-recovery. In this, we recommend the promotion of mobile power plants to facilitate contestability in generation and need for non-island small systems to participate in regional power markets to neutralize the scale limitations of their autarkic demand. Utilities and regulatory agencies should form platforms to share information on cost opportunities and possibilities to inform procurement designs and regulatory benchmarks. Regional markets could partner with national governments to develop subsidy schemes such as Contracts for Differences to remove rigidities imposed by national power purchasing contracts to promote deeper participation of small systems in regional power markets. Yardstick competition in the distribution segment remains viable in many small electricity systems and should be pursued at the regional level in the short run to medium term and at the national levels in the long term following deconcentration and the introduction of private sector participation.

Long-Term Forecast of Sierra Leone’s Energy Supply and Demand (2019–2040): A LEAP Model Application for Sustainable Power Generation System

Sierra Leone is suffering from a persistent electricity gap that has crippled its economic growth and prevented it from attaining several health and education development goals. This persistent electricity gap has generated significant interest in tackling the country’s long-lasting energy deficiency. Providing electricity in a reliable, sustainable, and cost-effective manner in Sierra Leone requires adopting robust integrated energy planning and appropriate technologies. Despite various interventions by the government, a balance between electricity demand and supply has yet to be achieved. Using the Long-range Energy Alternatives Planning System (LEAP), this work assesses Sierra Leone’s energy supply and demand for 2019–2040. We developed three case scenarios (Base, Middle, and High) based on forecasted demand, resource potential, techno-economic parameters, and CO2 emissions. The Base case considers the electricity sector as business as usual, the Middle case examines the electricity sector reform roadmap and the prospect of integrating renewable energy into the power system, and the High case examines the sustainable development of the power generation system considering the electricity sector roadmap. As part of this study, we analyze potential alternatives to conventional electricity generation systems aimed at providing electricity in a sustainable, reliable, and affordable manner, including the use of renewable energy sources and technologies with less CO2 emissions. Model results estimate an increase in electricity demand of 1812.5 GWh, 1936 GWh, and 2635.8 GWh for Base, Middle, and High cases respectively. Also, there is a reduction in production, fuel cost, and CO2 emission in the High case to the Base case by 67.15%, 35.79%, and 51.8%, respectively. This paper concludes with recommendations devised from the study results for the power system of Sierra Leone.

Impact of Energy Sector Reforms on Electricity Penetration in Kenya Relative to Other Reforming Developing Countries

Purpose: There are observable improvements in Kenya’s electricity sector since the mid-1990s. Among these are increase in electricity generated and an increase in number of households and institutions connected to the grid. These milestones have been achieved during the reform period. To find out whether these achievements are attributable to the reforms or not is the subject of this paper. This paper carries out an econometric evaluation of the impact of electricity sector reforms in Kenya relative to other four developing countries using panel data over the period 1993 to 2018. The paper assesses the impact of restructuring, unbundling, competition and private sector participation on electricity access.
 Methodology: In this study we carried out estimations of the outcome of reforms using panel data. The study period 1993 to 2018 was chosen based on data availability and also the consideration that power sector reforms in Kenya, Uganda, Tanzania and Senegal began after 1993.
 Findings: Using fixed effect method the study concludes that competition is key in enhancing access to electricity nationally and in both rural and urban areas. On the other hand, restructuring has a negative impact on both electrification in the four countries under study.
 Unique Contribution to Theory, Practice and Policy: Allowing more players and also in the buying of bulk energy for onward transmission and distribution with the aim of ultimately having a fully competitive marketing the sector would therefore improve the power industry outcomes.

Impact of Energy Sector Reforms on Electricity Penetration in Kenya Relative to Other Reforming Developing Countries

There are observable improvements in Kenya’s electricity sector since the mid 1990s. Among these are increase in electricity generated and an increase in number of households and institutions connected to the grid. These milestones have been achieved during the reform period. To find out whether these achievements are attributable to the reforms or not is the subject of this paper. This paper carries out an econometric evaluation of the impact of electricity sector reforms in Kenya relative to other four developing countries using panel data over the period 1993 to 2018. The paper assesses the impact of restructuring, unbundling, competition and private sector participation on electricity access. Using fixed effect method the study concludes that competition is key in enhancing access to electricity nationally and in both rural and urban areas. On the other hand, restructuring has a negative impact on both electrification in the four countries under study. Allowing more players in the sector would therefore improve the power industry outcomes. Key words : Power sector, Reforms, Electrification, Fixed effect method, Developing countries DOI: 10.7176/JRDM/90-06 Publication date: February 28 th 2023

Old colonial power in new green financing instruments. Approaching financial subordination from the perspective of racial capitalism in renewable energy finance in Senegal

Scaling up finance to expand renewable energy generation in Africa has become common sense in climate discourses. This article problematizes renewable energy finance in Africa and particularly Senegal from a perspective of global historical power relations. The article builds upon and contributes to literature on financial subordination and geographies of renewables finance. Starting point of the study is that literature on renewables finance with a critical perspective on race and colonial continuities is rare. It therefore draws on the concept of racial capitalism to unpack how finance differentiates along racialized lines and echoes colonial power. Empirical evidence is provided based on an analysis of renewables finance in Senegal. The country has attracted considerable investments into the renewables sector due to electricity sector reforms. In the first step, the article examines how these reforms drive private sector participation. Second, it analyzes the financing structure of two major renewable power plants. The analysis focuses on financial subordination visible in currency hierarchies that is traced back to colonial power and racialized financial logics. In sum, the article suggests to understand RE finance through the lens of financial subordination in colonial perspective to unravel its racializing dimension.

Long Variation in Voltage and Supply Interruption in a Distribution System

The paper examines a distribution system field data for the assessment of voltage variation and supply interruption. The under voltage has severe impacts on the consumer loads working conditions causing overloads and high transmission losses. The under-voltage limit has been set for voltage below 0.9p.u. The measurement was conducted in the control room for the duration of one week for logging interval of 1-min using Fluke VR1710 that monitors single-phase voltage quality of power network. Long duration variations are considered to be present when the limits are exceeded for greater than 1-minute time lapse. In this paper, the lowest interruption duration recorded was 20 minutes while the number of under-voltages was 41 occurrences. A simple mathematical analysis of power flow deviation was determined for correlation with the frequency disturbances recorded by the equipment. Both measurements and simulation results show that frequency rapidly changes in the network. The lowest and highest frequency vary between (48.7665 Hz to 51.196 Hz) and (48.843 Hz to 51.263 Hz) respectively. Thus, voltage and frequency disturbance statistics vindicate the voltage variation in the site to be within the ±10% limits but the overall performance of frequency monitored in the site violated the operational limits of ±0.2 Hz (i.e. 49.8 Hz to 50.2 Hz) and ±0.5 Hz (i.e. 49.5 Hz to 50.5 Hz) for the statutory regulatory. The paper would provide repository data as point of reference for Electric power sector reform act No.6 2005.

Unbundling as A Privtisation Strategy: The Electricity Sector Reform in Nigeria

Unbundling as A Privtisation Strategy: The Electricity Sector Reform in Nigeria

Unbundling as A Privtisation Strategy: The Electricity Sector Reform in Nigeria

Unbundling as A Privtisation Strategy: The Electricity Sector Reform in Nigeria

Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach

Electricity sector reforms have transformed the structure and organization of the sector worldwide. While outcomes of reforms in developed and developing countries have been extensively examined, there is limited analysis of the reforms in sub-Saharan Africa (SSA). This paper analyses the performance of electricity sector reforms in 37 SSA countries between 2000 and 2017. We use a stochastic frontier analysis approach to estimate a multi-input multi-output distance function to assess the impact of reform steps and institutional features on indicators of investment and technical efficiency. Results indicate a positive correlation between reforms and installed generation capacity per capita, plant load factor, and technical network losses. The presence of an electricity law, sector regulator, vertical unbundling, and private participation in the management of assets were positively correlated with reform performance. Perceptions of non-violent institutional features such as corruption, regulatory quality and governance effectiveness do not seem to have had a significant effect, but perceptions of political stability, violence, and terrorism influenced reform outcomes. We conclude that a workable reform in SSA involves vertical unbundling with an electricity law, a regulator, and private ownership and management of assets where feasible. However, positive outcomes go hand in hand with higher technical network energy losses which indicates higher investment in the generation segment than in the network segment. Hence, emphasis should be placed on decoupling the energy losses from power generation.

Evaluating the impacts of reforming and integrating China's electricity sector

Addressing the efficiency–equity–environment trade-off is an important part of implementing electricity sector reform. To support China's electricity market reform, this study conducts an ex-ante analysis to quantify the economic, distributional and environmental effects of marketization and integration. Three scenarios are designed based on the current reform progress and possible reform directions, including a planning scenario, a provincial market scenario and a regional market scenario. Using high-frequency data of electricity load, production and trade from five southern Chinese provinces in 2018, we quantify the impacts on electricity generation mix, wholesale prices, carbon emissions and social welfare. The potential welfare improvement achieved from establishing provincial markets is 14.3 billion yuan, which could be further increased to 21.0 billion yuan by integrating the provincial markets into a regional market. The regional average wholesale price could be reduced by 23.5% 22.7% and (regional market) (provincial market), respectively. The carbon emissions could be reduced by about 12.4 million tons (2.4%) in the provincial market scenario and 16.6 million tons (3.2%) in the regional market scenario. Moreover, individual provinces are affected heterogeneously from the marketization and integration, and the potential winners and losers have been identified from market reform. The regional market performs better than the provincial market in terms of overall efficiency gains and environmental outcomes but worse in addressing equity concerns.

Malaysia’s electricity market structure in transition

The Malaysian electricity industry evolved from a vertically integrated utility into a single-buyer model, which considered a precursor to deregulation and a competitive market. This study considers electricity sector reform in Malaysia and proposes a market structure for the industry. We focus on the single-buyer model and the pool model for the analysis with the recommendation on reform stages required to ensure a smooth and successful market transition. A smooth transition from regulated market into deregulated market will ensure market stability and sustainability of the energy market. It will also provide enough time for the market participants to adapt and transit from regulated to deregulated energy market.

Nigerian Power Sector: A new structure required for effective and adequate power generation, transmission and distribution

In this paper, the structure of the Nigerian power sector is examined, the problems in the structure are identified and a new structure is proposed for effective power generation, transmission and distribution. Besides the problems usually canvassed, the current structure is defective from the perspective of the ownership of the power infrastructures, passive involvement of state governments and undue influence of the federal government. The reforms in the sector were driven by the Electric Power Sector Reform Act (EPSRA) of 2005, leading to the creation of Power Holding Company of Nigeria (PHCN) to take both the assets and the liabilities of the then National Electric Power Authority (NEPA), and the subsequent unbundling of PHCN to 18 successor companies – 6 power generating companies, one power transmission company and 11 power distribution companies. The new structure proposed in this work gives room for every state government to own power plants and distribute power in the various states. They can equally buy power from independent power producers. Power plants owned by the federal government in the present structure are to continue sending power to the national grid and made available to states with insufficient power generation in the new structure. Independent power producers can also send power to the national grid. The federal government will continue managing power transmission in the new structure. Each state government will own at least two power distribution companies in partnership with private organizations who will equally have a stake in the ownership of the power generating plants. The tariff of grid-connected power will be higher, encouraging states to go into active power generation. The new structure will enable the federal government to do away with rural electrification programme and other power generation options regulated by the Nigerian Electricity Regulatory Commission which should be under the control of various state governments. New laws are needed in the place of the EPSRA to achieve the new structure. The federal government will make money from the proposed structure instead of spending huge sums of money in the present structure.

Pathways towards India's nationally determined contribution and mid-century strategy

India's emission mitigation policy, as reflected in its Nationally Determined Contribution (NDC), focuses on two energy sector related variables- share of non-fossil sources in the electricity generation sector, and emission intensity of India's GDP. We undertake a scenario-based uncertainty assessment to understand if there is room to enhance the mitigation ambition of India's energy sector related NDC targets and inform long-term decarbonisation. We find that while there is room to enhance ambition on the electricity sector mitigation target, some key uncertainties related specifically to the industrial sector need to be better understood before enhancing ambition on the emission intensity reduction front. We highlight that renewable energy integration cost and decarbonisation of industrial energy use are going to be key challenges for India's long-term decarbonisation strategy, and that electricity sector reforms in India are going to be critical to address both these challenges. Finally, we conclude by highlighting that India could demonstrate leadership by taking additional burden for the world by adopting a peaking year for its power sector emissions as a part of its Mid-Century Strategy.

Law, Policy, and the Development of Renewable Energy for Electricity: A Case for a Renewable Energy Law in Nigeria

AbstractNigeria faces a perennial problem of inadequate electricity generation and supply. Electricity generation from fossil fuel sources has not succeeded in meeting the electricity needs of the country. And attempts to diversify electricity generation sources to include renewable energy sources have not been successful. Although there is a policy direction supporting the inclusion of renewable energy sources for electricity generation, the Electric Power Sector Reform Act 2005 (ESPR) has not succeeded in achieving the country's sustainable electricity drive. Nigeria needs to vigorously pursue its renewable electricity objectives through a law dedicated to encouraging uptake of renewable energy. This article examines the law and the policies underpinning Nigeria's sustainable electricity drive through a critique of the EPSR Act and the energy policy in light of Nigeria's renewable electricity objectives.

Reforma sektora elektroenergetycznego na Ukrainie – liberalizacja rynku i korporatyzacja przedsiębiorstw

1. Baillo et al. 2001 – Baillo, A.,Ventosa, M., Ramos, A., Rivier, M. and Canseco, A. 2001. Strategic unit commitment for generation companies in deregulated electricity markets. [In:] Hobbs, B., Rothkopf, M., O’Neil, R., Chao, H. (eds.) The Next Generation of Unit Commitment Models. Boston: Kluwer Academic Publishers, pp. 227–248. Google Scholar

Uncovering regime resistance in energy transition: Role of electricity iron triangle in Taiwan

AbstractUsing electricity sector reform as a case study, this paper analyses the energy policy making in Taiwan, by applying the theoretical concept of regime resistance and an electricity iron triangle, aiming to elucidate analytical challenges that sustainability transition studies are facing in East Asia. While most such studies focus on the critical role of industrial incumbents, this paper shifts attention to the resistance of the “electricity iron triangle” of the ruling party, the utility workers' union and anti‐nuclear groups to fundamental transformation. It draws upon secondary data and primary information from interviews, especially governmental officials, environmental groups, journalists, electric utilities and Taiwan Power Company (Taipower) union members. This research contributes to the wider debates on regime resistance towards the phase‐out of nuclear power and on the effectiveness of electricity liberalisation as a means to achieve an effective energy transition.

A case study of Australia's emissions reduction policies - An electricity planner's perspective

Australia offers an interesting case study of climate policy effectiveness as Australia has ‘tried’ a wide range of policies to mixed effect. Given that more than half of Australia's greenhouse gas emissions typically come from stationary energy generation, most climate policy in Australia has focussed on electricity sector reform, particularly the uptake of variable renewable energy and the decrease of thermal power generation. Electricity supply in Australia has undergone substantial change over recent years, substantially due to these policies, and needs to continue changing in the future to meet climate change mitigation targets and ensure stable, cost-effective electricity supply. This paper is therefore written from the perspective of an electricity planner and seeks to learn from the experiences of climate policies tried over recent decades. We start by reviewing the history of Australian energy policy and a description of how the Australian electricity network is structured to operate. We examine the theory and effects of different policies tried, which range from renewable energy targets, carbon pricing schemes, subsidies for renewable energy and research and development initiatives. We make three key observations from the case analysis: (1) that there has been substantial expense and effort effectively wasted through duplicate effects of different policy mechanisms by both federal and state governments; (2) as various mechanisms enable variable renewable energy generation to increase, the market becomes distorted, increasing total system costs and decreasing system robustness and resilience; and (3) the narrowed focus of climate policy mechanisms on certain variable renewables, such as solar photovoltaic and wind generation, omitted the opportunity for uptake of scale-able low carbon, firm generation options, like nuclear power and carbon capture and storage.