Professional Documents
Culture Documents
SHORTFALL
A Guide for Policymakers
Energy Cluster
Sustainable Development Department
Latin America & Caribbean Region The World Bank
Managing An Electricity Shortfall
Elements of While it may not be known when or why, it is certain that there will be future
a Program electricity crises and that they are likely to occur in both industrialized and
to Manage an developing countries.
Electricity An electricity crisis is characterized by an occurrence of electricity
Crisis shortages which can find their origin in:
Increase Signal scarcity to Short and (Varied) Need ata on residential Chile 2007- Best suited for energy crisis as
Residential residential users. Medium consumption (load curve and 08 Electricity residential consumers have no
Tariffs Term elasticities), political willing- Crisis Man- time of use meters. Comple-
ness, able to wait for delayed agement ment of media campaign rather
response than substitute.
Mandate/ Re-allocating public Short and (Varied) Need to conduct energy Chile Energy High visibility of government
Encourage sector uses of energy to Medium audits and data on energy Efficiency Poli- actions signals strong com-
Public Sector more socially responsible Term consumption. cies for Public mitment and increase likely
Energy purposes that conserve Sector response by public. Increasing
Conservation electricity public service uses of energy
can have large impact (water
pumping).
Encourage Involves voluntarily Immedi- VOLL Need appropriate data to Government Often the government is the
Voluntary reducing electricity ate and implement efficient partial voluntary ra- first to engage in voluntary
Rationing consumption Short rationing tioning: Brazil, rationing, with hopes that in-
Term Ontario, and dustry and residential consum-
Tokyo ers will follow by example.
Mandate Consumers are given Immedi- VOLL Need data to implement effi- Norway “10 Involuntary rationing should
Compulsory restricted electricity ate Term cient partial rationing; ability for 10” Cam- be used only as a last resort
Rationing usage by mandate. to compensate for or justify paign to preserve the integrity of the
the social and economic electricity system in the imme-
disruption costs. diate term.
Introduce More Energy-Efficient Technologies
Launch CFL Improvement of light Medium 0.023 Need an in-place distribution Cuba CFL Introduction of efficient light-
Replacement bulb efficiency, including Term channel and mechanism; a Replacement ning through the distribution of
Program public lighting (traffic method of ensuring destruc- Program CFLs is the most cost effective
lights, street lights) tion of old bulbs measure to reduce demand.
Launch Replacement inefficient Medium 0.150 Need an in-place distribution Cuba Need detailed information on
Appliance appliances for residential Term channel and mechanism; a Appliance existing stocks and use habits
Replacement & industrial users. method of ensuring destruc- Replacement to design efficient campaign.
Program tion of refrigerators Program
1 Improve Generation Allows improvements in the output Short (Varied) Data on availability limita- Philippines
and Transmission of existing assets in the sector; Term tions needs to be readily Overhaul of
Outputs (Increase valid for generation and transmis- available. Diesel Plant
Availability) sion assets.
2 Rehabilitate This increases capacity by Improv- Short (Varied) Data on capacity limitations Philippines
Existing Equipment ing the operation of existing equip- Term needs to be readily avail- Overhaul of
(Increase Capacity) ment or rehabilitates retired or able. Diesel Plant
de-rated units
3 Expedite Completion Start with plants and transmis- Medium (Varied) Cost of expediting efforts or
of Plants Under sion lines in Expansion Plans and Term incentives to contractors and
Construction advance the comopletion date to owners to adhere to reduced
prevent schedule slippages. schedule; need to determine
effectiveness of expediting
the schedule
4 Offer PPAs on a Integrate backup generation into Immediate (Varied) Need to create PPAs with ap-
short term basis the dispatch pool for peaking by and Short propriately lined and priced
offering PPAs to make use of Term incentives to effectively
existing operating equipment. target backup generation
options.
5 Increase availability Bagasse fueled plants are used by Immediate 0.147 Need to obtain data on
of bagasse fueled sugar cane mills only during the and Short existing on-site generation
plants sugar cane harvest —use for alter- Term available plants. Rules and
native fuels after harvest tariffs for use of wires and
standardized PPA needed.
6 Add Capacitor Add capacitor banks at sites which Short $4.5 mil- Need to cover cost of ca-
Banks to Reduce reduce transmission system losses Term (8 lion for 90 pacitor installations; need to
Transmission Losses and can increase the operating months) MVAR at update transmission system
MW capacity of existing generators. 230 kV data
7 Install Advanced Reducing technical and non- Short and (Varied) Data on sources of losses Colombia
Metering Systems technical losses through Medium (technical, commercial); Integrated
to Reduce Losses installing new metering Term social and political feasibility; Power System
technologies public acceptance of new (Cartagena)
metering technologies.
8 Install High Speed Install high speed reciprocating Immediate 0.151 Need to obtain pricing data;
Reciprocating engines to operate on a temporary Term (90 need to be able to pay for
Engines basis. days) high fuel costs and rental
fees.
9 Lease Power Install leased power generation Immediate $500 to Need to obtain pricing and
Generation barges equipped with Term $700/kw other available data, and be
Barges, or Fixed reciprocating engines or for used able to pay high cost fuel
Gas Turbine, combustion turbines. barges; and rental fees or purchase
Simple Cycle $650/kw to costs, cost to prepare water-
$850/kw front site, or land site
for simple
cycle
10 Lease or Purchase Lease or purchase used power Short and (Varied), Need a defined schedule to
Used Power Plant plant equipment with a warranty Medium with high implement use power plant
Equipment less than for new equipment. Term risk due equipment as soon as pos-
to limited sible to minimize warranty
warranty risks
The Energy Sector Management Assistance Program (ESMAP) is a global knowledge and
technical assistance program administered by The World Bank and assists low- and middle-income
countries to increase know how and institutional capability to achieve environmentally sustainable
energy solutions for poverty reduction and economic growth. For more information about ESMAP’s
energy assessments and strategy work, please visit us or write to us at:
Further information:
Please visit the World Bank’s website: www.worldbank.org
12Managing an Electricity Shortfall