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Power interruption costs to industries in Cameroon

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  • Diboma, B.S.
  • Tamo Tatietse, T.

Abstract

This study focusses on the estimation of power interruption costs to industries in Cameroon. Those interruptions are the result of perturbations sustained by the power network. A normalised direct worth (NDW) approach was used as a direct method for assessment, while the compensatory estimation method (CEM) was used for indirect assessment. A survey was conducted with a representative sample of industries in Cameroon using a questionnaire as the main research instrument. The results show that power interruption losses are very significant. Using the direct method for assessment, the average outage cost varies from €3.62/kWh to €5.42/kWh for a 1-h interruption and from 1.96/kWh to €2.46/kWh for a 4-h outage. The study finds that advance suspension notices could help in reducing outage costs by 19.83–33%. With the indirect method, the total capital costs and total running costs of generators are approximately €180,040,180.08 and €4,305,510.6, respectively, while the average cost per unused kWh of electricity stands at €3.37/kWh. The study concludes that power interruptions have a significant negative effect on industries in Cameroon.

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  • Diboma, B.S. & Tamo Tatietse, T., 2013. "Power interruption costs to industries in Cameroon," Energy Policy, Elsevier, vol. 62(C), pages 582-592.
    • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:582-592
    DOI: 10.1016/j.enpol.2013.07.014
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    2. Chen, Hao & Chen, Xi & Niu, Jinye & Xiang, Mengyu & He, Weijun & Küfeoğlu, Sinan, 2021. "Estimating the marginal cost of reducing power outage durations in China: A parametric distance function approach," Energy Policy, Elsevier, vol. 155(C).
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    5. Ovaere, Marten & Heylen, Evelyn & Proost, Stef & Deconinck, Geert & Van Hertem, Dirk, 2019. "How detailed value of lost load data impact power system reliability decisions," Energy Policy, Elsevier, vol. 132(C), pages 1064-1075.
    6. Monyei, Chukwuka G. & Akpeji, Kingsley O. & Oladeji, Olamide & Babatunde, Olubayo M. & Aholu, Okechukwu C. & Adegoke, Damilola & Imafidon, Justus O., 2022. "Regional cooperation for mitigating energy poverty in Sub-Saharan Africa: A context-based approach through the tripartite lenses of access, sufficiency, and mobility," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    7. Elie Bouri & Joseph El Assad, 2016. "The Lebanese Electricity Woes: An Estimation of the Economical Costs of Power Interruptions," Energies, MDPI, vol. 9(8), pages 1-12, July.
    8. Oseni, Musiliu O. & Pollitt, Michael G., 2015. "A firm-level analysis of outage loss differentials and self-generation: Evidence from African business enterprises," Energy Economics, Elsevier, vol. 52(PB), pages 277-286.
    9. Jean Gaston Tamba & Flavian Emmanuel Sapnken & Tchitchile Wilfried Emmanuel Azong & Serge Guefano & Armand Fopah Lele & Louis Monkam, 2022. "An Overview of Electricity in Cameroon: Current Status, Influential Factors and Government Actions," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 470-481, July.
    10. Rahmatallah Poudineh and Tooraj Jamasb, 2017. "Electricity Supply Interruptions: Sectoral Interdependencies and the Cost of Energy Not Served for the Scottish Economy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).

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