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The Economics of Renewable Energy Expansion in Rural Sub-Saharan AfricaAccelerating development in Sub-Saharan Africa will require massive expansion of access to electricity -- currently reaching only about one-third of households. This paper explores how essential economic development might be reconciled with the need to keep carbon emissions in check. The authors develop a geographically explicit framework and use spatial modeling and cost estimates from recent engineering studies to determine where stand-alone renewable energy generation is a cost effective alternative to centralized grid supply. The results suggest that decentralized renewable energy will likely play an important role in expanding rural energy access. But it will be the lowest cost option for a minority of households in Africa, even when likely cost reductions over the next 20 years are considered. Decentralized renewables are competitive mostly in remote and rural areas, while grid connected supply dominates denser areas where the majority of households reside. These findings underscore the need to de-carbonize the fuel mix for centralized power generation as it expands in Africa.
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Turkey’s Energy Transition Milestones and ChallengesThrough a variety of interlinked measures, Turkey’s energy reforms have achieved energy security for a fast-growing economy with rapidly increasing energy needs. These measures include legislation regarding electricity, gas, renewable energy, and energy efficiency; the establishment of an energy sector regulatory authority; energy price reform; the creation of a functional electricity market and large-scale introduction of natural gas; the restructuring of state-owned energy enterprises; and large-scale private sector participation through privatization and new investment. The objectives of this are to: (a) inform future energy reforms and reformers seeking to learn and benefit from Turkey’s experience, and (b) contribute to the dialogue on future energy reforms in Turkey. The report will present Turkey’s accomplishments in developing and implementing market-oriented energy reforms as well as selected key reform challenges going forward. In terms of reform milestones, the primary focus is on the electric power and natural gas sectors, although energy pricing and subsidies in the petroleum sector are also addressed. The report covers mainly the period starting from 2001, when progressive electricity and natural gas market laws were enacted, though the preceding period - from the opening of the energy sector to private investment in 1984 up to the enactment of the new energy market laws in 2001 - is covered briefly to present key milestones and to highlight key lessons. In terms of future challenges, the report discusses the ongoing and unfinished liberalization of the electricity and gas markets as well as required government support, including governance, in the energy sector. The challenges include the reform of the natural gas market, further development of the electricity market, and governance issues in the energy sector. Discussion of environmental and social issues and challenges has been integrated into the relevant sections.
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Meeting the Balance of Electricity Supply and Demand in Latin America and the CaribbeanEconomic growth in the Latin America and the Caribbean region has picked up considerably during the past decade or so. This growth has been aided by widespread (earlier and more recent) investments in power generation, transmission, and distribution that increased the provision of electricity services to households, commerce, and industry. This report evaluates a number of critical issues for the power sector in the region in the coming two decades. These include the expected rates of increase in the demand for electricity, the required supply of new generating capacity, the technology and fuel mix of that generating capacity, and the carbon dioxide emissions of the sector. One of the key contributions of this study is the aggregation of individual country plans to the regional and sub regional levels, using a consistent set of data and a common methodology. The report also assesses the important roles of hydropower and natural gas, the way other clean and low-carbon resources can be expanded, the potential and benefits of greater electricity trade, and the role of energy efficiency. By considering the region as a whole, the report highlights the role that individual countries will play in shaping the region's aggregate power sector.