Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services
This document is about the private participation in electricity. Private activity in electricity in developing countries has stabilized at a modest level since 2001. Private activity also became more evenly distributed between International Development Association (IDA) countries and non IDA countries. Private activity in electricity remained concentrated in a few countries. Investors generally prefer greenfield projects structured as enclave projects, protected from many sector risks. Electricity is not the only infrastructure sector where this type of private investment predominates. Similar arrangements have emerged in water and sanitation, where greenfield water and sewage treatment plants sell to a single customer through government-supported take or pay agreements. Distribution is inherently riskier for investors because it involves selling to thousands of customers who purchase at prices that are highly visible and politically contentious. To attract investment in distribution, a new guarantee mechanism has been adopted. In overview, these projects usually provide protection from major risks through long-term contracts and often come with government payment guarantees. If there is to be significant and sustained private investment beyond greenfield generation projects, it will need to be built on a platform of commercially viable electricity distribution entities. If private participation can establish such entities, it will create the best foundation for future upstream private investment in generation.
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dig-okr-10986106862021-04-23T14:02:51Z Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services Tenenbaum, Bernard Izaguirre, Ada Karina ARBITRATION AVERAGE TARIFF LEVELS BALANCE BANK GUARANTEE BUYERS CONSUMER CONSUMER PRICE INDEX CONSUMERS CONTRIBUTIONS COST RECOVERY CREDIT ENHANCEMENTS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISTRIBUTION NETWORK ELECTRICITY ELECTRICITY DISTRIBUTION ELECTRIFICATION EMERGING MARKET EMERGING MARKET FIRMS ENTERPRISE OPERATIONS ESCROW ESCROW ACCOUNTS FUTURE PRICES GENERATION INFRASTRUCTURE INVESTMENT INTERNATIONAL DEVELOPMENT LATIN AMERICAN LEGAL RIGHTS LETTERS OF CREDIT LIQUIDITY LIQUIDITY FACILITIES LOCAL INVESTORS NEW INVESTORS PARTIAL RISK PAYMENT GUARANTEES POLITICAL ECONOMY POWER POWER PLANTS POWER PURCHASE AGREEMENTS POWER SECTOR PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR INVESTMENT PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY SYSTEMS RETURN RISK EXPOSURE SHARE OF INVESTMENT SUB-SAHARAN AFRICA SUSTAINABLE DEVELOPMENT TARIFF LEVELS TAX TECHNICAL ASSISTANCE TERM CONTRACTS TERMINATIONS URBAN DEVELOPMENT UTILITIES WEB SITE This document is about the private participation in electricity. Private activity in electricity in developing countries has stabilized at a modest level since 2001. Private activity also became more evenly distributed between International Development Association (IDA) countries and non IDA countries. Private activity in electricity remained concentrated in a few countries. Investors generally prefer greenfield projects structured as enclave projects, protected from many sector risks. Electricity is not the only infrastructure sector where this type of private investment predominates. Similar arrangements have emerged in water and sanitation, where greenfield water and sewage treatment plants sell to a single customer through government-supported take or pay agreements. Distribution is inherently riskier for investors because it involves selling to thousands of customers who purchase at prices that are highly visible and politically contentious. To attract investment in distribution, a new guarantee mechanism has been adopted. In overview, these projects usually provide protection from major risks through long-term contracts and often come with government payment guarantees. If there is to be significant and sustained private investment beyond greenfield generation projects, it will need to be built on a platform of commercially viable electricity distribution entities. If private participation can establish such entities, it will create the best foundation for future upstream private investment in generation. 2012-08-13T12:43:31Z 2012-08-13T12:43:31Z 2007-05 http://documents.worldbank.org/curated/en/2007/05/8333675/private-participation-electricity-challenge-achieving-commercial-viability-improving-services http://hdl.handle.net/10986/10686 English Gridlines; No. 21 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
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English |
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ARBITRATION AVERAGE TARIFF LEVELS BALANCE BANK GUARANTEE BUYERS CONSUMER CONSUMER PRICE INDEX CONSUMERS CONTRIBUTIONS COST RECOVERY CREDIT ENHANCEMENTS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISTRIBUTION NETWORK ELECTRICITY ELECTRICITY DISTRIBUTION ELECTRIFICATION EMERGING MARKET EMERGING MARKET FIRMS ENTERPRISE OPERATIONS ESCROW ESCROW ACCOUNTS FUTURE PRICES GENERATION INFRASTRUCTURE INVESTMENT INTERNATIONAL DEVELOPMENT LATIN AMERICAN LEGAL RIGHTS LETTERS OF CREDIT LIQUIDITY LIQUIDITY FACILITIES LOCAL INVESTORS NEW INVESTORS PARTIAL RISK PAYMENT GUARANTEES POLITICAL ECONOMY POWER POWER PLANTS POWER PURCHASE AGREEMENTS POWER SECTOR PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR INVESTMENT PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY SYSTEMS RETURN RISK EXPOSURE SHARE OF INVESTMENT SUB-SAHARAN AFRICA SUSTAINABLE DEVELOPMENT TARIFF LEVELS TAX TECHNICAL ASSISTANCE TERM CONTRACTS TERMINATIONS URBAN DEVELOPMENT UTILITIES WEB SITE ARBITRATION AVERAGE TARIFF LEVELS BALANCE BANK GUARANTEE BUYERS CONSUMER CONSUMER PRICE INDEX CONSUMERS CONTRIBUTIONS COST RECOVERY CREDIT ENHANCEMENTS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISTRIBUTION NETWORK ELECTRICITY ELECTRICITY DISTRIBUTION ELECTRIFICATION EMERGING MARKET EMERGING MARKET FIRMS ENTERPRISE OPERATIONS ESCROW ESCROW ACCOUNTS FUTURE PRICES GENERATION INFRASTRUCTURE INVESTMENT INTERNATIONAL DEVELOPMENT LATIN AMERICAN LEGAL RIGHTS LETTERS OF CREDIT LIQUIDITY LIQUIDITY FACILITIES LOCAL INVESTORS NEW INVESTORS PARTIAL RISK PAYMENT GUARANTEES POLITICAL ECONOMY POWER POWER PLANTS POWER PURCHASE AGREEMENTS POWER SECTOR PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR INVESTMENT PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY SYSTEMS RETURN RISK EXPOSURE SHARE OF INVESTMENT SUB-SAHARAN AFRICA SUSTAINABLE DEVELOPMENT TARIFF LEVELS TAX TECHNICAL ASSISTANCE TERM CONTRACTS TERMINATIONS URBAN DEVELOPMENT UTILITIES WEB SITE |
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ARBITRATION AVERAGE TARIFF LEVELS BALANCE BANK GUARANTEE BUYERS CONSUMER CONSUMER PRICE INDEX CONSUMERS CONTRIBUTIONS COST RECOVERY CREDIT ENHANCEMENTS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISTRIBUTION NETWORK ELECTRICITY ELECTRICITY DISTRIBUTION ELECTRIFICATION EMERGING MARKET EMERGING MARKET FIRMS ENTERPRISE OPERATIONS ESCROW ESCROW ACCOUNTS FUTURE PRICES GENERATION INFRASTRUCTURE INVESTMENT INTERNATIONAL DEVELOPMENT LATIN AMERICAN LEGAL RIGHTS LETTERS OF CREDIT LIQUIDITY LIQUIDITY FACILITIES LOCAL INVESTORS NEW INVESTORS PARTIAL RISK PAYMENT GUARANTEES POLITICAL ECONOMY POWER POWER PLANTS POWER PURCHASE AGREEMENTS POWER SECTOR PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR INVESTMENT PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY SYSTEMS RETURN RISK EXPOSURE SHARE OF INVESTMENT SUB-SAHARAN AFRICA SUSTAINABLE DEVELOPMENT TARIFF LEVELS TAX TECHNICAL ASSISTANCE TERM CONTRACTS TERMINATIONS URBAN DEVELOPMENT UTILITIES WEB SITE ARBITRATION AVERAGE TARIFF LEVELS BALANCE BANK GUARANTEE BUYERS CONSUMER CONSUMER PRICE INDEX CONSUMERS CONTRIBUTIONS COST RECOVERY CREDIT ENHANCEMENTS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISTRIBUTION NETWORK ELECTRICITY ELECTRICITY DISTRIBUTION ELECTRIFICATION EMERGING MARKET EMERGING MARKET FIRMS ENTERPRISE OPERATIONS ESCROW ESCROW ACCOUNTS FUTURE PRICES GENERATION INFRASTRUCTURE INVESTMENT INTERNATIONAL DEVELOPMENT LATIN AMERICAN LEGAL RIGHTS LETTERS OF CREDIT LIQUIDITY LIQUIDITY FACILITIES LOCAL INVESTORS NEW INVESTORS PARTIAL RISK PAYMENT GUARANTEES POLITICAL ECONOMY POWER POWER PLANTS POWER PURCHASE AGREEMENTS POWER SECTOR PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR INVESTMENT PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY SYSTEMS RETURN RISK EXPOSURE SHARE OF INVESTMENT SUB-SAHARAN AFRICA SUSTAINABLE DEVELOPMENT TARIFF LEVELS TAX TECHNICAL ASSISTANCE TERM CONTRACTS TERMINATIONS URBAN DEVELOPMENT UTILITIES WEB SITE Tenenbaum, Bernard Izaguirre, Ada Karina Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services |
| description |
This document is about the private
participation in electricity. Private activity in
electricity in developing countries has stabilized at a
modest level since 2001. Private activity also became more
evenly distributed between International Development
Association (IDA) countries and non IDA countries. Private
activity in electricity remained concentrated in a few
countries. Investors generally prefer greenfield projects
structured as enclave projects, protected from many sector
risks. Electricity is not the only infrastructure sector
where this type of private investment predominates. Similar
arrangements have emerged in water and sanitation, where
greenfield water and sewage treatment plants sell to a
single customer through government-supported take or pay
agreements. Distribution is inherently riskier for investors
because it involves selling to thousands of customers who
purchase at prices that are highly visible and politically
contentious. To attract investment in distribution, a new
guarantee mechanism has been adopted. In overview, these
projects usually provide protection from major risks through
long-term contracts and often come with government payment
guarantees. If there is to be significant and sustained
private investment beyond greenfield generation projects, it
will need to be built on a platform of commercially viable
electricity distribution entities. If private participation
can establish such entities, it will create the best
foundation for future upstream private investment in generation. |
| format |
Publications & Research :: Brief |
| topic_facet |
ARBITRATION AVERAGE TARIFF LEVELS BALANCE BANK GUARANTEE BUYERS CONSUMER CONSUMER PRICE INDEX CONSUMERS CONTRIBUTIONS COST RECOVERY CREDIT ENHANCEMENTS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISTRIBUTION NETWORK ELECTRICITY ELECTRICITY DISTRIBUTION ELECTRIFICATION EMERGING MARKET EMERGING MARKET FIRMS ENTERPRISE OPERATIONS ESCROW ESCROW ACCOUNTS FUTURE PRICES GENERATION INFRASTRUCTURE INVESTMENT INTERNATIONAL DEVELOPMENT LATIN AMERICAN LEGAL RIGHTS LETTERS OF CREDIT LIQUIDITY LIQUIDITY FACILITIES LOCAL INVESTORS NEW INVESTORS PARTIAL RISK PAYMENT GUARANTEES POLITICAL ECONOMY POWER POWER PLANTS POWER PURCHASE AGREEMENTS POWER SECTOR PRIVATE INFRASTRUCTURE PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR INVESTMENT PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY SYSTEMS RETURN RISK EXPOSURE SHARE OF INVESTMENT SUB-SAHARAN AFRICA SUSTAINABLE DEVELOPMENT TARIFF LEVELS TAX TECHNICAL ASSISTANCE TERM CONTRACTS TERMINATIONS URBAN DEVELOPMENT UTILITIES WEB SITE |
| author |
Tenenbaum, Bernard Izaguirre, Ada Karina |
| author_facet |
Tenenbaum, Bernard Izaguirre, Ada Karina |
| author_sort |
Tenenbaum, Bernard |
| title |
Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services |
| title_short |
Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services |
| title_full |
Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services |
| title_fullStr |
Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services |
| title_full_unstemmed |
Private Participation in Electricity : The Challenge of Achieving Commercial Viability and Improving Services |
| title_sort |
private participation in electricity : the challenge of achieving commercial viability and improving services |
| publisher |
World Bank, Washington, DC |
| publishDate |
2007-05 |
| url |
http://documents.worldbank.org/curated/en/2007/05/8333675/private-participation-electricity-challenge-achieving-commercial-viability-improving-services http://hdl.handle.net/10986/10686 |
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