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Author Vagliasindi, Maria
Title Revisiting Public-Private Partnerships in the Power Sector
Imprint Herndon : World Bank Publications, 2013
©2013
book jacket
Descript 1 online resource (126 pages)
text txt rdacontent
computer c rdamedia
online resource cr rdacarrier
Series World Bank Studies
World Bank Studies
Note Front Cover -- Title Page -- Copyright -- Contents -- Acknowledgments -- Overview Chapter -- Chapter 1 Investment Needs and Financing Challenges -- How the Recent Financial Crisis Compares to Past Ones -- How Does the Financial Crisis Affect the Financing Gaps? -- How Do Climate Change Considerations Affect Investment Needs? -- Sources of Financing of Investment for Conventional Power -- Sources of Financing of Investment for Climate Change -- References -- Chapter 2 How PPPs Are Faring Globally -- A Profile of PPP Power Activities -- The Role of Sectoral Governance -- How the Econometric Study Was Done -- Econometric Results -- Notes -- References -- Chapter 3 Renewable Energy Case Studies -- The Case of China -- The Case of Brazil -- The Case of Peru -- The Case of Mexico -- Conclusions -- Notes -- References -- Appendix A How the Financial Crisis Affected Various Developing Countries -- Appendix B Climate Change Projections for Investments Needs Vary Greatly -- Appendix C Methodology -- Boxes -- Figures -- Tables -- Back Cover
Given the chronic power shortages faced by numerous developing countries, and the need everywhere to keep pace with demand, understanding the drivers of public private partnerships (PPPs) in energy is critical. While many private electricity projects have been delayed and financing costs have increased, the impact of the global financial crisis was less severe than that of previous crises that originated in developing countries. This resilience stems from developing countries' need to expand generation capacity, electricity sector reforms and better regulatory frameworks, and short-term solutions (such as rental power plants). The study reports the evidence from statistical analysis and a sample of case studies selected based. It proposes a novel analytical approach to model PPPs, using a two-stage procedure based on Heckman's sample selection distinguishing between those factors that determine whether private investment in energy takes place, and those that influence the volume of investment. The results of the analysis provide the following conclusions:Both general governance and regulatory instrument primarily affect investors' decisions to enter the various power sector markets, not the subsequent level of investment - indicating that investors seem to be adequately protected against risks.Support mechanisms, like feed-in tariffs, are crucial for attracting investors in renewable generation, but they do not succeed in displacing fossil fuel investment and they could play a bigger role in affecting the level of investment in renewables.There is a significant trade-off between effectiveness and efficiency of alternative instruments for deploying renewables. Feed-in tariffs tended to be quite effective but to be set on the high side, reducing incentives to cut costs and posing significant strains on already stripped national budgets. Competitive
auctions, on the other hand have tended to be efficient but initially low and not always the most effective instrument.Countries can scale up renewables following different paths. For Brazil, the move from feed-in tariffs to auctions enabled it to both reduce costs and deploy additional capacity. Peru followed in Brazil's path, opting for auctions instead of introducing feed-in tariffs. On the other hand, China's move from competitive tenders to feed-in tariffs allowed for discovery effects to determine the right level of prices to attract private investment in renewables
Description based on publisher supplied metadata and other sources
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2020. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries
Link Print version: Vagliasindi, Maria Revisiting Public-Private Partnerships in the Power Sector Herndon : World Bank Publications,c2013 9780821397626
Subject Public-private sector cooperation.;Business networks.;Strategic alliances (Business)
Electronic books
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