IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i6p3191-3198.html
   My bibliography  Save this article

Hybrid power markets in Africa: Generation planning, procurement and contracting challenges

Author

Listed:
  • Malgas, Isaac
  • Eberhard, Anton

Abstract

African power sectors are generally characterised by insufficient generation capacity. Reforms to address poor performances in the 1990s followed a prescribed evolution towards power markets that would allow wholesale competition amongst generators and so lead towards efficiency improvements. Despite reforms being embarked, competitive power markets have not been established in Africa; rather, the result has been the emergence of hybrid markets where state-owned generators and IPPs operate devoid of competition; and although IPPs have emerged in a number of African power sectors, many countries still do not have sufficient generation to meet their electricity demands. This paper investigates the development of private generation power projects in Africa by analysing data collected from both primary and secondary sources in four case studies of power sectors in Ghana, Côte d'Ivoire, Morocco and Tunisia. It identifies how planning and procurement challenges have lead to difficulties in adding sufficient generation capacity in a timely manner, exacerbating the problem of insufficient generation capacity in Africa. It provides suggestions as to how these frameworks could respond more effectively to the capacity challenges faced by hybrid electricity generation markets, and how broader power sector reforms should be guided to reflect the challenges of hybrid markets better.

Suggested Citation

  • Malgas, Isaac & Eberhard, Anton, 2011. "Hybrid power markets in Africa: Generation planning, procurement and contracting challenges," Energy Policy, Elsevier, vol. 39(6), pages 3191-3198, June.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:6:p:3191-3198
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511001844
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nellis, John, 2005. "The Evolution of Enterprise Reform in Africa: From State-owned Enterprises to Private Participation in Infrastructure - and Back?," Privatisation Regulation Corporate Governance Working Papers 12193, Fondazione Eni Enrico Mattei (FEEM).
    2. John Nellis, 2005. "The Evolution of Enterprise Reform in Africa: From State-owned Enterprises to Private Participation in Infrastructure — and Back?," Working Papers 2005.117, Fondazione Eni Enrico Mattei.
    3. Vagliasindi, Maria, 2008. "Governance arrangements for state owned enterprises," Policy Research Working Paper Series 4542, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eberhard, Anton & Gratwick, Katharine & Morella, Elvira & Antmann, Pedro, 2017. "Independent Power Projects in Sub-Saharan Africa: Investment trends and policy lessons," Energy Policy, Elsevier, vol. 108(C), pages 390-424.
    2. Morgan Bazilian & Patrick Nussbaumer & Hans-Holger Rogner & Abeeku Brew-Hammond & Vivien Foster & Shonali Pachauri & Eric Williams & Mark Howells & Philippe Niyongabo & Lawrence Musaba & Brian Ó Galla, 2011. "Energy Access Scenarios to 2030 for the Power Sector in Sub-Saharan Africa," Working Papers 2011.68, Fondazione Eni Enrico Mattei.
    3. Yun, Na, 2023. "Nexus among carbon intensity and natural resources utilization on economic development: Econometric analysis from China," Resources Policy, Elsevier, vol. 83(C).
    4. Gunther Bensch, 2019. "The effects of market-based reforms on access to electricity in developing countries: a systematic review," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 11(2), pages 165-188, April.
    5. Eberhard, Anton & Gratwick, Katharine & Kariuki, Laban, 2018. "Kenya's lessons from two decades of experience with independent power producers," Utilities Policy, Elsevier, vol. 52(C), pages 37-49.
    6. Liang, Shuai & Wang, Peng & Jia, Cunlu & Zhu, Jialan, 2023. "Studying green financing, factor allocation efficiency, and regional productivity growth in renewable energy industries," Renewable Energy, Elsevier, vol. 214(C), pages 130-139.
    7. Eberhard, Anton & Gratwick, Katharine Nawaal, 2011. "IPPs in Sub-Saharan Africa: Determinants of success," Energy Policy, Elsevier, vol. 39(9), pages 5541-5549, September.
    8. Pueyo, Ana, 2018. "What constrains renewable energy investment in Sub-Saharan Africa? A comparison of Kenya and Ghana," World Development, Elsevier, vol. 109(C), pages 85-100.
    9. Trotter, Philipp A. & Maconachie, Roy & McManus, Marcelle C., 2018. "Solar energy's potential to mitigate political risks: The case of an optimised Africa-wide network," Energy Policy, Elsevier, vol. 117(C), pages 108-126.
    10. Khan, Muhammad T. & Thopil, George Alex & Lalk, Jorg, 2016. "Review of proposals for practical power sector restructuring and reforms in a dynamic electricity supply industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 326-335.
    11. Alexis Vessat, 2017. "The role of unmet demand in the dynamics of energy supply forms: The case of electricity market structures in sub-Saharan Africa," Post-Print hal-01944317, HAL.
    12. Asantewaa, Adwoa & Jamasb, Tooraj & Llorca, Manuel, 2022. "Reforming Small Electricity Systems: Market Design and Competition," Working Papers 12-2022, Copenhagen Business School, Department of Economics.
    13. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    2. Imam, Mahmud I. & Jamasb, Tooraj & Llorca, Manuel, 2019. "Sector reforms and institutional corruption: Evidence from electricity industry in Sub-Saharan Africa," Energy Policy, Elsevier, vol. 129(C), pages 532-545.
    3. Anton Eberhard & Vivien Foster & Cecilia Briceño-Garmendia & Fatimata Ouedraogo & Daniel Camos & Maria Shkaratan, 2008. "Underpowered : The State of the Power Sector in Sub-Saharan Africa," World Bank Publications - Reports 7833, The World Bank Group.
    4. Afia Malik, 2021. "Corporate Governance in the State-Owned Electricity Distribution Companies," PIDE Knowledge Brief 2021:40, Pakistan Institute of Development Economics.
    5. Pierre BAUBY, 2019. "The governance of State-owned Enterprises (SOEs) operating under monopoly situation," CIRIEC Working Papers 1931, CIRIEC - Université de Liège.
    6. Biggar, Darryl, 2022. "Seven outstanding issues in energy network regulation," Energy Economics, Elsevier, vol. 115(C).
    7. Dónal Palcic & Eoin Reeves, 2013. "State-Owned Enterprise Policy and the Loss of Economic Sovereignty: The Case of Ireland," Public Organization Review, Springer, vol. 13(2), pages 117-130, June.
    8. Maciej Bałtowski & Grzegorz Kwiatkowski, 2014. "Modele funkcjonowania i nadzoru państwa nad przedsiębiorstwami państwowymi," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 5-26.
    9. Anne Strand Alfredsen Larsen & Gro Holst Volden & Bjørn Andersen, 2021. "Project Governance in State-Owned Enterprises: The Case of Major Public Projects’ Governance Arrangements and Quality Assurance Schemes," Administrative Sciences, MDPI, vol. 11(3), pages 1-27, July.
    10. Herrera Dappe,Matias & Musacchio,Aldo & Pan,Carolina & Semikolenova,Yadviga Viktorivna & Turkgulu,Burak & Barboza,Jonathan, 2022. "State-Owned Enterprises as Countercyclical Instruments : Experimental Evidence from the Infrastructure Sector," Policy Research Working Paper Series 9971, The World Bank.
    11. Stavros A. Zenios, 2013. "The Cyprus Debt: Perfect Crisis and a Way Forward," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 7(1), pages 3-45, June.
    12. Twesigye, Peter, 2022. "Structural, governance, & regulatory incentives for improved utility performance: A comparative analysis of electric utilities in Tanzania, Kenya, and Uganda," Utilities Policy, Elsevier, vol. 79(C).
    13. Evans, Lewis, 2009. "Capital Market Integration: The Structure of the New Zealand Economy and its Capital Markets," Working Paper Series 4035, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    14. repec:vuw:vuwscr:19137 is not listed on IDEAS
    15. Evans, Lewis, 2009. "Capital Market Integration: The Structure of the New Zealand Economy and its Capital Markets," Working Paper Series 19137, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    16. Spartak Keremidchiev & Miroslav Nedelchev, 2020. "Foreign models and policies for state-owned enterprises," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 3-14,15-25.
    17. Herrera Dappe,Matias & Musacchio,Aldo & Pan,Carolina & Semikolenova,Yadviga Viktorivna & Turkgulu,Burak & Barboza,Jonathan, 2022. "Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence," Policy Research Working Paper Series 9969, The World Bank.

    More about this item

    Keywords

    Power Sector Reforms;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:6:p:3191-3198. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.