Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies

Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies

This study analyzes impacts on the power sector in the Middle East and North Africa region of three policies: removal of fuel subsidies, cross-border electricity trade, and reduction of carbon dioxide emissions in line with commitments under the Pa...

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Main Authors: Timilsina, Govinda R., Deluque Curiel, Ilka Fabiana
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
POWER SYSTEM
REGIONAL ELECTRICITY TRADE
FUEL SUBSIDY
GREENHOUSE GAS EMISSIONS
ELECTRICITY PLANNING
Online Access:http://documents.worldbank.org/curated/en/783251592940144153/Power-System-Implications-of-Subsidy-Removal-Regional-Electricity-Trade-and-Carbon-Constraints-in-MENA-Economies
http://hdl.handle.net/10986/33992
id okr-10986-33992
recordtype oai_dc
spelling okr-10986-339922022-09-20T00:12:34Z Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies Timilsina, Govinda R. Deluque Curiel, Ilka Fabiana POWER SYSTEM REGIONAL ELECTRICITY TRADE FUEL SUBSIDY GREENHOUSE GAS EMISSIONS ELECTRICITY PLANNING This study analyzes impacts on the power sector in the Middle East and North Africa region of three policies: removal of fuel subsidies, cross-border electricity trade, and reduction of carbon dioxide emissions in line with commitments under the Paris Agreement. The analysis uses a power system planning model that minimizes the total electricity supply cost over 2018–35 by satisfying specified technical, economic, environmental, and policy constraints. The study shows that the region would save between US$26.3 billion and US$27.5 billion, measured in 2018 prices, by removing subsidies of natural gas used for power generation. It would save US$83.6 billion to US$90.9 billion through cross-border electricity trade. The two policies together would yield a reduction of 10 percent in cumulative power sector carbon dioxide emissions in the region, with a net cost savings of US$111 billion. If a carbon constraining policy is considered to achieve the same level of reduction of emissions, the cost of the power system would increase by US$97 billion. The study also reveals that the benefits of subsidy removal would be higher in the presence of cross-border trade, and the benefits of cross-border trade would be higher in the absence of fuel subsidies. 2020-06-25T15:45:57Z 2020-06-25T15:45:57Z 2020-06 Working Paper http://documents.worldbank.org/curated/en/783251592940144153/Power-System-Implications-of-Subsidy-Removal-Regional-Electricity-Trade-and-Carbon-Constraints-in-MENA-Economies http://hdl.handle.net/10986/33992 English Policy Research Working Paper;No. 9297 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Middle East North Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic POWER SYSTEM
REGIONAL ELECTRICITY TRADE
FUEL SUBSIDY
GREENHOUSE GAS EMISSIONS
ELECTRICITY PLANNING
spellingShingle POWER SYSTEM
REGIONAL ELECTRICITY TRADE
FUEL SUBSIDY
GREENHOUSE GAS EMISSIONS
ELECTRICITY PLANNING
Timilsina, Govinda R.
Deluque Curiel, Ilka Fabiana
Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies
geographic_facet Middle East and North Africa
Middle East
North Africa
relation Policy Research Working Paper;No. 9297
description This study analyzes impacts on the power sector in the Middle East and North Africa region of three policies: removal of fuel subsidies, cross-border electricity trade, and reduction of carbon dioxide emissions in line with commitments under the Paris Agreement. The analysis uses a power system planning model that minimizes the total electricity supply cost over 2018–35 by satisfying specified technical, economic, environmental, and policy constraints. The study shows that the region would save between US$26.3 billion and US$27.5 billion, measured in 2018 prices, by removing subsidies of natural gas used for power generation. It would save US$83.6 billion to US$90.9 billion through cross-border electricity trade. The two policies together would yield a reduction of 10 percent in cumulative power sector carbon dioxide emissions in the region, with a net cost savings of US$111 billion. If a carbon constraining policy is considered to achieve the same level of reduction of emissions, the cost of the power system would increase by US$97 billion. The study also reveals that the benefits of subsidy removal would be higher in the presence of cross-border trade, and the benefits of cross-border trade would be higher in the absence of fuel subsidies.
format Working Paper
author Timilsina, Govinda R.
Deluque Curiel, Ilka Fabiana
author_facet Timilsina, Govinda R.
Deluque Curiel, Ilka Fabiana
author_sort Timilsina, Govinda R.
title Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies
title_short Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies
title_full Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies
title_fullStr Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies
title_full_unstemmed Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies
title_sort power system implications of subsidy removal, regional electricity trade, and carbon constraints in mena economies
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/783251592940144153/Power-System-Implications-of-Subsidy-Removal-Regional-Electricity-Trade-and-Carbon-Constraints-in-MENA-Economies
http://hdl.handle.net/10986/33992
_version_ 1764479954064506880

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