From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector
Sudan’s electricity sector is operating efficiently from the technical stand point, compared to regional standards. However, the sector faces many of the operational challenges in the management and financial areas, common to countries in the regio...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/486961588608080192/From-Subsidy-to-Sustainability-Diagnostic-Review-of-Sudan-Electricity-Sector http://hdl.handle.net/10986/33702 |
| Summary: | Sudan’s electricity sector is operating
efficiently from the technical stand point, compared to
regional standards. However, the sector faces many of the
operational challenges in the management and financial
areas, common to countries in the region. The most urgent
issue facing the sector is financial sustainability. Another
issue is that the subsidy does not reach the poor due to
their limited access to electricity. Most electricity access
is provided for urban and relatively rich segments of the
population. Electricity access in Kordofan and Darfur
regions is particularly limited. The sector has been
connecting a significant number of customers to the grid,
but the increased access has been mostly offset by
population growth. In the coming years, sector costs will
likely increase exponentially and may trigger a power
crisis. A range of policy measures can mitigate increases in
sector costs, including: (a) using low-cost power from
Ethiopia and Egypt; (b) redirecting available investment
capital away from thermal generation to domestic solar and
wind generation; and (c) curbing demand growth through
efficiency measures and price signals. Interim tariff
targets will be set by the Government of Sudan to guide the
short-term tariff transition. Finally, the sector needs to
strengthen its planning capacity and corporate governance
structure. Given the current volatility in political and
economic circumstances, short-term policy actions are
critical to pave the path for sector recovery. Additional
analysis and technical assistance to help the sector
recovery will be carried out to inform policy decisions by
the Government of Sudan and engagement by other development
partners. In the next phase of engagement, World Bank will
review the energy sector in totality with specific focus on fuels. |
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