Best Practices for Market-Based Power Rationing : Implications for South Africa

This report summarizes South Africa's energy challenges, efforts to establish a low-carbon energy strategy through the Power Conservation Program; and several World Bank backed initiatives to help the country save energy, reduce greenhouse gas emissions, and help South Africa cope with a power crunch. The Power Conservation Program has proved its effectiveness. The economic benefits of the program include the reduced need for dispatching expensive, oil-fired power plants. The national electric utility, Eskom, has maintained the Power Conservation Program as an option that can be expanded beyond the large industrial customer base, if further power shortages arise due to an imbalance between electricity supply and demand. The system is well understood among Eskom's staff, integrated into business processes, and it can be adjusted to accommodate a larger customer base, if necessary. It is an excellent hedging mechanism that can help Eskom to manage power system reliability if the reserve margins deteriorate in the future.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2011-06
Subjects:ACCESS TO ENERGY, ACCESS TO ENERGY SERVICES, AFFORDABLE ENERGY, ALLOCATION, APPROACH, AVAILABILITY, BALANCE, BARREL OF OIL, BARRIERS TO ENERGY EFFICIENCY, CALCULATION, CARBON, CARBON ACCOUNTING, CARBON DIOXIDE, CARBON EMISSIONS, CARBON FOOTPRINT, CLEAN ENERGY, CLEANER ENERGY, CLIMATE, CLIMATE CHANGE, CO, CO2, COAL, COAL GENERATION, CONSUMPTION PER HOUSEHOLD, CONVERGENCE, COST OF ENERGY, DEMAND FOR ELECTRICITY, DEMAND MANAGEMENT, DEMAND REDUCTION, DEMAND RESPONSE, DEMAND-SIDE MANAGEMENT, DIESEL, DROUGHT, ECONOMIC BENEFITS, ECONOMIC GROWTH, ECONOMIC PERSPECTIVE, EFFICIENT LIGHTING, ELECTRIC ENERGY, ELECTRIC POWER, ELECTRIC POWER GENERATION, ELECTRIC RATES, ELECTRIC UTILITY, ELECTRICITY, ELECTRICITY CONSERVATION, ELECTRICITY CONSUMPTION, ELECTRICITY COUNCIL, ELECTRICITY DEMAND, ELECTRICITY SALES, ELECTRICITY SAVINGS, ELECTRICITY SECTOR, ELECTRICITY SUPPLY, ELECTRICITY SYSTEM, ELECTRIFICATION, EMISSION, EMISSION FACTOR, EMISSION REDUCTION, EMISSIONS, END-USE, ENERGY CONSERVATION, ENERGY CONSUMERS, ENERGY CONVERSION, ENERGY EFFICIENCY, ENERGY MARKET, ENERGY MARKETS, ENERGY POLICY, ENERGY REDUCTIONS, ENERGY RESEARCH, ENERGY SAVINGS, ENERGY SECURITY, ENERGY SERVICE, ENERGY SERVICE COMPANY, ENERGY SOURCES, ENERGY SUPPLY, ENERGY USAGE, ENERGY USE, ENVIRONMENTAL IMPACTS, ENVIRONMENTAL SUSTAINABILITY, FLUORESCENT LAMP, FUEL, FUEL SUPPLY, GENERATING CAPACITY, GENERATION CAPACITY, GHG, GREEN FIELD, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GAS EMISSIONS, GROSS DOMESTIC PRODUCT, HEAT, HIGH ENERGY INTENSITY, HYDROPOWER, INCOME, INTERNATIONAL ENERGY AGENCY, INVESTMENTS IN ENERGY, INVESTMENTS IN ENERGY EFFICIENCY, JOBS, KILOWATT HOUR, LOAD SHEDDING, LOW-CARBON, MARGINAL COST, NATURAL GAS, NEW PLANTS, NUCLEAR ENERGY, NUCLEAR POWER, NUCLEAR POWER PLANT, OIL, PEAK DEMAND, PEAK LOAD, PENALTIES, PER CAPITA INCOME, POLICY ANALYSIS, POLICY MAKERS, POLLUTION, POWER, POWER CONSUMPTION, POWER CRISIS, POWER DEMAND, POWER PLANT, POWER PLANTS, POWER PRODUCER, POWER PRODUCERS, POWER SECTOR, POWER SHORTAGES, POWER SUPPLY, POWER SYSTEM, RAINFALL, REBATES, RENEWABLE ENERGY, RESERVOIRS, SCENARIOS, SOLAR WATER HEATERS, SPOT MARKET, SPOT PRICE, SUSTAINABLE DEVELOPMENT, SUSTAINABLE ENERGY, THERMAL POWER, THERMAL POWER GENERATION, TRADE SYSTEM, UTILITIES, VALUE OF ENERGY, VARIABLE COST, VEHICLE EFFICIENCY,
Online Access:http://documents.worldbank.org/curated/en/2011/06/16279495/south-africa-best-practices-market-based-power-rationing-implications-south-africa
https://hdl.handle.net/10986/12507
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Summary:This report summarizes South Africa's energy challenges, efforts to establish a low-carbon energy strategy through the Power Conservation Program; and several World Bank backed initiatives to help the country save energy, reduce greenhouse gas emissions, and help South Africa cope with a power crunch. The Power Conservation Program has proved its effectiveness. The economic benefits of the program include the reduced need for dispatching expensive, oil-fired power plants. The national electric utility, Eskom, has maintained the Power Conservation Program as an option that can be expanded beyond the large industrial customer base, if further power shortages arise due to an imbalance between electricity supply and demand. The system is well understood among Eskom's staff, integrated into business processes, and it can be adjusted to accommodate a larger customer base, if necessary. It is an excellent hedging mechanism that can help Eskom to manage power system reliability if the reserve margins deteriorate in the future.