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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Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
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
id okr-10986-33702
recordtype oai_dc
spelling okr-10986-337022021-05-25T09:37:05Z From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector World Bank ELECTRICITY ENERGY SUBSIDIES ACCESS TO ELECTRICITY ENERGY SECTOR REFORM ENERGY GENERATION POWER SECTOR REFORM 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. 2020-05-05T16:44:51Z 2020-05-05T16:44:51Z 2019-06-10 Report http://documents.worldbank.org/curated/en/486961588608080192/From-Subsidy-to-Sustainability-Diagnostic-Review-of-Sudan-Electricity-Sector http://hdl.handle.net/10986/33702 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Energy Study Economic & Sector Work Africa Sudan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ELECTRICITY
ENERGY SUBSIDIES
ACCESS TO ELECTRICITY
ENERGY SECTOR REFORM
ENERGY GENERATION
POWER SECTOR REFORM
spellingShingle ELECTRICITY
ENERGY SUBSIDIES
ACCESS TO ELECTRICITY
ENERGY SECTOR REFORM
ENERGY GENERATION
POWER SECTOR REFORM
World Bank
From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector
geographic_facet Africa
Sudan
description 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.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector
title_short From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector
title_full From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector
title_fullStr From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector
title_full_unstemmed From Subsidy to Sustainability : Diagnostic Review of Sudan Electricity Sector
title_sort from subsidy to sustainability : diagnostic review of sudan electricity sector
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/486961588608080192/From-Subsidy-to-Sustainability-Diagnostic-Review-of-Sudan-Electricity-Sector
http://hdl.handle.net/10986/33702
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