Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa

This paper documents the prevalence of in-house generation of electric power by firms in Sub-Saharan Africa and attempts to identify the underlying causes. The analysis is based on two data sources. The UDI World Electric Power Plants Data Base (WE...

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Bibliographic Details
Main Authors: Foster, Vivien, Steinbuks, Jevgenijs
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
GAS
OIL
WEB
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090430142027
http://hdl.handle.net/10986/4116
id okr-10986-4116
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO ELECTRICITY
APPROACH
AVAILABILITY
AVAILABILITY OF POWER
BACK-UP
BACKUP
BACKUP POWER
BALANCE
BIOMASS
BLACKOUTS
BUSINESS OPERATIONS
BUSINESSES
CAPABILITY
CAPITAL INVESTMENTS
CAPITAL STOCK
CEMENT
CHEMICAL PRODUCTS
COAL
COMBUSTION
COMMERCE
COMMERCIAL ACTIVITIES
COMMODITY
COMMUNICATION TECHNOLOGIES
CONSUMPTION OF ELECTRICITY
CONSUMPTION OF FUEL
CONTRACT ENFORCEMENT
COST OF ELECTRICITY
COST OF POWER
COSTS OF ELECTRICITY
COSTS OF POWER
DATA ANALYSIS
DEMAND FOR POWER
DIESEL
DIESEL FUEL
DIESEL GENERATORS
DISTRIBUTION NETWORKS
DISTRIBUTION OF ELECTRICITY
ECONOMIC ASSESSMENT
ECONOMIC BENEFITS
ECONOMIC COSTS
ECONOMIC DEVELOPMENT
ECONOMIES OF SCALE
ELECTRIC POWER
ELECTRIC POWER GENERATION
ELECTRIC POWER INDUSTRY
ELECTRIC POWER PLANTS
ELECTRIC POWER SECTOR
ELECTRICAL POWER
ELECTRICITY COGENERATION
ELECTRICITY CONSUMPTION
ELECTRICITY PRODUCERS
ELECTRICITY SECTOR
ELECTRICITY SERVICES
ELECTRICITY SUPPLY
ELECTRICITY TARIFFS
EMPLOYMENT
END USERS
ENERGY DEPARTMENT
ENERGY INTENSITY
ENERGY POLICY
ENERGY-INTENSIVE INDUSTRIES
ENTERPRISE SURVEY
ENTERPRISE SURVEYS
EQUIPMENT
EXPORT MARKETS
EXTERNAL FINANCING
FIXED COSTS
FOREIGN TRADE
FOSSIL
FOSSIL FUEL
FRONT OFFICE
FUEL
FUEL CONSUMPTION
FUEL COST
FUEL PRICES
FUEL TYPE
FUEL TYPES
FUELS
GAS
GENERATING CAPACITY
GENERATING UNITS
GENERATION
GENERATION ASSETS
GENERATION BUSINESS
GENERATION CAPACITY
GENERATION COSTS
GENERATION MARKETS
GENERATION OF ELECTRICITY
GENERATOR
GRID
GRID ELECTRIFICATION
HYDROELECTRIC PLANTS
HYDROPOWER
INDUSTRIAL STRUCTURE
INFRASTRUCTURE ACCESS
INFRASTRUCTURE SERVICES
INTERNATIONAL COMPARISON
INTERNATIONAL COMPETITIVENESS
INTERNATIONAL ENERGY
INVENTORY
INVESTMENT CLIMATE
INVESTMENT COSTS
KILOWATT-HOUR
LIMITED ACCESS
LOAD FACTOR
MANUFACTURING
MANUFACTURING INDUSTRIES
MARGINAL COST OF ELECTRICITY
MARGINAL COSTS
MEDIUM ENTERPRISES
NATURAL MONOPOLY
OIL
OIL PRICES
OWNERSHIP CHANGE
PEAK LOAD
PETROLEUM
PHYSICAL INFRASTRUCTURE
POST-CONFLICT
POWER
POWER COMPANIES
POWER GENERATION
POWER MARKETS
POWER OUTAGES
POWER SECTOR
POWER SECTOR REFORM
POWER SECTORS
POWER SUPPLIES
POWER SUPPLY
POWER UTILITIES
PRICE OF DIESEL
PRICE OF ELECTRICITY
PRICE VOLATILITY
PRIVATE INVESTMENT
PROCUREMENT
PRODUCTION PROCESS
PRODUCTIVITY
PROVISION OF POWER
PUBLIC POWER
PUBLIC PRIVATE INFRASTRUCTURE
PUBLIC SERVICES
PUBLIC UTILITIES
PUMPS
RAIDS
RAW MATERIALS
RELIABILITY
RENEWABLE ENERGY
RENEWABLE ENERGY DEVELOPMENT
RESULT
RESULTS
RETAIL SALES
STATE-OWNED UTILITIES
STRATEGIC VALUE
SUGAR INDUSTRY
SUNK COSTS
TRANSMISSION
USES
UTILITIES
WEB
WEB SITE
WEB SITES
spellingShingle ACCESS TO ELECTRICITY
APPROACH
AVAILABILITY
AVAILABILITY OF POWER
BACK-UP
BACKUP
BACKUP POWER
BALANCE
BIOMASS
BLACKOUTS
BUSINESS OPERATIONS
BUSINESSES
CAPABILITY
CAPITAL INVESTMENTS
CAPITAL STOCK
CEMENT
CHEMICAL PRODUCTS
COAL
COMBUSTION
COMMERCE
COMMERCIAL ACTIVITIES
COMMODITY
COMMUNICATION TECHNOLOGIES
CONSUMPTION OF ELECTRICITY
CONSUMPTION OF FUEL
CONTRACT ENFORCEMENT
COST OF ELECTRICITY
COST OF POWER
COSTS OF ELECTRICITY
COSTS OF POWER
DATA ANALYSIS
DEMAND FOR POWER
DIESEL
DIESEL FUEL
DIESEL GENERATORS
DISTRIBUTION NETWORKS
DISTRIBUTION OF ELECTRICITY
ECONOMIC ASSESSMENT
ECONOMIC BENEFITS
ECONOMIC COSTS
ECONOMIC DEVELOPMENT
ECONOMIES OF SCALE
ELECTRIC POWER
ELECTRIC POWER GENERATION
ELECTRIC POWER INDUSTRY
ELECTRIC POWER PLANTS
ELECTRIC POWER SECTOR
ELECTRICAL POWER
ELECTRICITY COGENERATION
ELECTRICITY CONSUMPTION
ELECTRICITY PRODUCERS
ELECTRICITY SECTOR
ELECTRICITY SERVICES
ELECTRICITY SUPPLY
ELECTRICITY TARIFFS
EMPLOYMENT
END USERS
ENERGY DEPARTMENT
ENERGY INTENSITY
ENERGY POLICY
ENERGY-INTENSIVE INDUSTRIES
ENTERPRISE SURVEY
ENTERPRISE SURVEYS
EQUIPMENT
EXPORT MARKETS
EXTERNAL FINANCING
FIXED COSTS
FOREIGN TRADE
FOSSIL
FOSSIL FUEL
FRONT OFFICE
FUEL
FUEL CONSUMPTION
FUEL COST
FUEL PRICES
FUEL TYPE
FUEL TYPES
FUELS
GAS
GENERATING CAPACITY
GENERATING UNITS
GENERATION
GENERATION ASSETS
GENERATION BUSINESS
GENERATION CAPACITY
GENERATION COSTS
GENERATION MARKETS
GENERATION OF ELECTRICITY
GENERATOR
GRID
GRID ELECTRIFICATION
HYDROELECTRIC PLANTS
HYDROPOWER
INDUSTRIAL STRUCTURE
INFRASTRUCTURE ACCESS
INFRASTRUCTURE SERVICES
INTERNATIONAL COMPARISON
INTERNATIONAL COMPETITIVENESS
INTERNATIONAL ENERGY
INVENTORY
INVESTMENT CLIMATE
INVESTMENT COSTS
KILOWATT-HOUR
LIMITED ACCESS
LOAD FACTOR
MANUFACTURING
MANUFACTURING INDUSTRIES
MARGINAL COST OF ELECTRICITY
MARGINAL COSTS
MEDIUM ENTERPRISES
NATURAL MONOPOLY
OIL
OIL PRICES
OWNERSHIP CHANGE
PEAK LOAD
PETROLEUM
PHYSICAL INFRASTRUCTURE
POST-CONFLICT
POWER
POWER COMPANIES
POWER GENERATION
POWER MARKETS
POWER OUTAGES
POWER SECTOR
POWER SECTOR REFORM
POWER SECTORS
POWER SUPPLIES
POWER SUPPLY
POWER UTILITIES
PRICE OF DIESEL
PRICE OF ELECTRICITY
PRICE VOLATILITY
PRIVATE INVESTMENT
PROCUREMENT
PRODUCTION PROCESS
PRODUCTIVITY
PROVISION OF POWER
PUBLIC POWER
PUBLIC PRIVATE INFRASTRUCTURE
PUBLIC SERVICES
PUBLIC UTILITIES
PUMPS
RAIDS
RAW MATERIALS
RELIABILITY
RENEWABLE ENERGY
RENEWABLE ENERGY DEVELOPMENT
RESULT
RESULTS
RETAIL SALES
STATE-OWNED UTILITIES
STRATEGIC VALUE
SUGAR INDUSTRY
SUNK COSTS
TRANSMISSION
USES
UTILITIES
WEB
WEB SITE
WEB SITES
Foster, Vivien
Steinbuks, Jevgenijs
Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa
geographic_facet Africa
Africa
Africa
relation Policy Research working paper ; no. WPS 4913
description This paper documents the prevalence of in-house generation of electric power by firms in Sub-Saharan Africa and attempts to identify the underlying causes. The analysis is based on two data sources. The UDI World Electric Power Plants Data Base (WEPP), a global inventory of electric power generating units, provides a detailed inventory of in-house generation at the country level. The World Bank's Enterprise Survey Database captures business perceptions of the obstacles to enterprise growth for 8,483 currently operating firms in 25 African countries. Overall, so-called own generation by firms-which has been on the rise in recent years-accounts for about 6 percent of installed generation capacity in Sub-Saharan Africa (equivalent to at least 4,000 MW of installed capacity). However, this share doubles to around 12 percent in the low-income countries, the post-conflict countries, and more generally on the Western side of the continent. In a handful of countries own generation represents more than 20 percent of capacity. Rigorous empirical analysis shows that unreliable public power supplies is far from being the only or even the largest factor driving generator ownership. Firm characteristics have a major influence-in particular, the probability of owning a generator doubles in large firms relative to small ones. Our model predicts that the prevalence of own generation would remain high (at around 20 percent) even if power supplies were perfectly reliable, suggesting that other factors, such as emergency back-up and export regulations, play a critical role in the decision to own a generator.
format Publications & Research :: Policy Research Working Paper
author Foster, Vivien
Steinbuks, Jevgenijs
author_facet Foster, Vivien
Steinbuks, Jevgenijs
author_sort Foster, Vivien
title Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa
title_short Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa
title_full Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa
title_fullStr Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa
title_full_unstemmed Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa
title_sort paying the price for unreliable power supplies : in-house generation of electricity by firms in africa
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090430142027
http://hdl.handle.net/10986/4116
_version_ 1764389987961274368
spelling okr-10986-41162021-04-23T14:02:15Z Paying the Price for Unreliable Power Supplies : In-House Generation of Electricity by Firms in Africa Foster, Vivien Steinbuks, Jevgenijs ACCESS TO ELECTRICITY APPROACH AVAILABILITY AVAILABILITY OF POWER BACK-UP BACKUP BACKUP POWER BALANCE BIOMASS BLACKOUTS BUSINESS OPERATIONS BUSINESSES CAPABILITY CAPITAL INVESTMENTS CAPITAL STOCK CEMENT CHEMICAL PRODUCTS COAL COMBUSTION COMMERCE COMMERCIAL ACTIVITIES COMMODITY COMMUNICATION TECHNOLOGIES CONSUMPTION OF ELECTRICITY CONSUMPTION OF FUEL CONTRACT ENFORCEMENT COST OF ELECTRICITY COST OF POWER COSTS OF ELECTRICITY COSTS OF POWER DATA ANALYSIS DEMAND FOR POWER DIESEL DIESEL FUEL DIESEL GENERATORS DISTRIBUTION NETWORKS DISTRIBUTION OF ELECTRICITY ECONOMIC ASSESSMENT ECONOMIC BENEFITS ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIES OF SCALE ELECTRIC POWER ELECTRIC POWER GENERATION ELECTRIC POWER INDUSTRY ELECTRIC POWER PLANTS ELECTRIC POWER SECTOR ELECTRICAL POWER ELECTRICITY COGENERATION ELECTRICITY CONSUMPTION ELECTRICITY PRODUCERS ELECTRICITY SECTOR ELECTRICITY SERVICES ELECTRICITY SUPPLY ELECTRICITY TARIFFS EMPLOYMENT END USERS ENERGY DEPARTMENT ENERGY INTENSITY ENERGY POLICY ENERGY-INTENSIVE INDUSTRIES ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT EXPORT MARKETS EXTERNAL FINANCING FIXED COSTS FOREIGN TRADE FOSSIL FOSSIL FUEL FRONT OFFICE FUEL FUEL CONSUMPTION FUEL COST FUEL PRICES FUEL TYPE FUEL TYPES FUELS GAS GENERATING CAPACITY GENERATING UNITS GENERATION GENERATION ASSETS GENERATION BUSINESS GENERATION CAPACITY GENERATION COSTS GENERATION MARKETS GENERATION OF ELECTRICITY GENERATOR GRID GRID ELECTRIFICATION HYDROELECTRIC PLANTS HYDROPOWER INDUSTRIAL STRUCTURE INFRASTRUCTURE ACCESS INFRASTRUCTURE SERVICES INTERNATIONAL COMPARISON INTERNATIONAL COMPETITIVENESS INTERNATIONAL ENERGY INVENTORY INVESTMENT CLIMATE INVESTMENT COSTS KILOWATT-HOUR LIMITED ACCESS LOAD FACTOR MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COST OF ELECTRICITY MARGINAL COSTS MEDIUM ENTERPRISES NATURAL MONOPOLY OIL OIL PRICES OWNERSHIP CHANGE PEAK LOAD PETROLEUM PHYSICAL INFRASTRUCTURE POST-CONFLICT POWER POWER COMPANIES POWER GENERATION POWER MARKETS POWER OUTAGES POWER SECTOR POWER SECTOR REFORM POWER SECTORS POWER SUPPLIES POWER SUPPLY POWER UTILITIES PRICE OF DIESEL PRICE OF ELECTRICITY PRICE VOLATILITY PRIVATE INVESTMENT PROCUREMENT PRODUCTION PROCESS PRODUCTIVITY PROVISION OF POWER PUBLIC POWER PUBLIC PRIVATE INFRASTRUCTURE PUBLIC SERVICES PUBLIC UTILITIES PUMPS RAIDS RAW MATERIALS RELIABILITY RENEWABLE ENERGY RENEWABLE ENERGY DEVELOPMENT RESULT RESULTS RETAIL SALES STATE-OWNED UTILITIES STRATEGIC VALUE SUGAR INDUSTRY SUNK COSTS TRANSMISSION USES UTILITIES WEB WEB SITE WEB SITES This paper documents the prevalence of in-house generation of electric power by firms in Sub-Saharan Africa and attempts to identify the underlying causes. The analysis is based on two data sources. The UDI World Electric Power Plants Data Base (WEPP), a global inventory of electric power generating units, provides a detailed inventory of in-house generation at the country level. The World Bank's Enterprise Survey Database captures business perceptions of the obstacles to enterprise growth for 8,483 currently operating firms in 25 African countries. Overall, so-called own generation by firms-which has been on the rise in recent years-accounts for about 6 percent of installed generation capacity in Sub-Saharan Africa (equivalent to at least 4,000 MW of installed capacity). However, this share doubles to around 12 percent in the low-income countries, the post-conflict countries, and more generally on the Western side of the continent. In a handful of countries own generation represents more than 20 percent of capacity. Rigorous empirical analysis shows that unreliable public power supplies is far from being the only or even the largest factor driving generator ownership. Firm characteristics have a major influence-in particular, the probability of owning a generator doubles in large firms relative to small ones. Our model predicts that the prevalence of own generation would remain high (at around 20 percent) even if power supplies were perfectly reliable, suggesting that other factors, such as emergency back-up and export regulations, play a critical role in the decision to own a generator. 2012-03-19T19:10:16Z 2012-03-19T19:10:16Z 2009-04-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090430142027 http://hdl.handle.net/10986/4116 English Policy Research working paper ; no. WPS 4913 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Africa