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1. Powering the Globe: Lessons from Southeast Asia for China’s Global Energy Interconnection Initiative

Author:
Edmund Downie
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy
Abstract:
China’s Global Energy Interconnection (GEI) initiative presents a transformational vision for meeting the world’s growing power demand with a globally interconnected electricity grid. The concept involves ultra-high-voltage transmission lines strung across vast distances and smart grid technology tapping large-scale renewable power sources. Chinese President Xi Jinping first touted GEI’s goal to “facilitate efforts to meet the global power demand with clean and green alternatives” at the UN General Assembly in 2015. The ambition of the GEI vision is enormous, especially since there is very little cross-border trade in electricity around the world today. Regional electricity integration initiatives championed by development banks and multilateral organizations have largely struggled against the formidable political, economic and technical complications that accompany interstate electricity trade. China has seen these challenges firsthand in its participation in the Asian Development Bank’s Greater Mekong Subregion electricity trade endeavor, which has progressed fitfully since the 1990s amid regional infrastructure gaps and uneven political support from member states. This report, prepared as part of the Belt and Road Initiative series published by Columbia University’s Center on Global Energy Policy, uses a case study of power trade in the Greater Mekong Subregion to assess the prospects for GEI in catalyzing energy integration around the world. It discusses why Greater Mekong Subregion integration has been slow, how GEI might help accelerate interconnection in the area, and what lessons the region offers for understanding the overall outlook for GEI. Based on this study, the author finds the following: Establishing a GEI-style global energy grid backbone by 2070 would require overcoming an extraordinary set of political challenges. The global grid outlined by GEI for the coming decades serves more as a demonstration of technical potential than a strict blueprint to be implemented. The limited scale attained thus far by the Greater Mekong Subregion project for grid integration and cross-border electricity trading demonstrates the headwinds such multinational efforts can face. Weak internal power sector development in recent decades has left some member states without the generation surpluses and robust power grids necessary to support meaningful levels of trade. In addition, power trade requires a strong degree of interstate political trust, motivated engagement by national utilities, and support from civil society players for the specific generation and transmission projects involved. Integration backers have historically struggled to build consensus across this diverse array of stakeholders. While enormous generation and transmission infrastructure projects are core components of the GEI vision and dovetail with the interests of China’s domestic proponents, considerable debate persists about their merits for fostering the renewables transition. Ultra-high-voltage transmission, a specialty of Chinese utilities, is a particular flashpoint. State interest in cross-border trade has been increasing across many regions in recent years, and more gradual gains in power trade around the world that can aid the renewable transition and bolster regional solidarity are possible. China can contribute greatly to this process: as an investor and contractor in grid projects abroad, as a member state of integration initiatives in Asia, and as an advocate of grid integration in international fora. GEI’s ultimate impact will depend in part on how advocates within China reconcile tensions between strengthening cross-border power trade and promoting domestic priorities, such as advancing the country’s own industrial policy objectives.
Topic:
Climate Change, United Nations, Infrastructure, Green Technology, and Electricity
Political Geography:
Global Focus

2. PART I: How Auctions Helped Solar Become the Cheapest Electricity in the World

Author:
Benjamin Attia, Shayle Kann, and Morgan D. Bazilian
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
The global energy transition has reached an inflection point. In numerous markets, the declining cost of solar photovoltaics (PV) has already beaten the cost of new-build coal and natural gas and is now chasing down operating costs of existing thermal power plants, forcing a growing crowd of thermal generation assets into early retirement. Perfect comparability between dispatchable and non-dispatchable resources invites debate, but the cost declines in solar PV are irrefutable: the global average unit cost of competitively-procured solar electricity declined by 83 percent from 2010 to 2018. This is due in part to module cost reductions of approximately 90 percent, capacity-weighted average construction cost declines of 74 percent, and a global paradigm shift in renewable energy procurement policies in the last six years.
Topic:
Climate Change, Environment, Science and Technology, Natural Resources, Infrastructure, and Electricity
Political Geography:
Global Focus

3. Iraq’s Power Sector: Problems and Prospects

Author:
Sujata Ashwarya
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Georgetown University Press
Abstract:
Despite substantial efforts and investments in rebuilding Iraq’s infrastructure since the overthrow of Saddam Hussein in 2003, the country is still struggling to deliver on public services. Years of destruction in conflict, as well as alleged mismanagement and neglect, have taken a heavy toll on the country’s power infrastructure. Severe power cuts and rolling blackouts are endemic in Iraq today. Between 2014 and 2018, Islamic State terrorism inflicted billions of dollars in damage on the already dilapidated electricity infrastructure, causing a cumulative potential and actual loss of a whopping 7GW in generation and transmission capacities.
Topic:
Economics, Energy Policy, Infrastructure, Business, Conflict, Services, and Electricity
Political Geography:
Iraq, Iran, and Middle East

4. Lebanon: The 3-Decade Impossible Power Sector Reforms

Author:
Jessica Obeid
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Lebanon defaulted on its debt for the first time in the country’s history. Many factors have contributed to this economic and fiscal crisis, but at the heart of them is the electricity sector, accountable for more than $39.5 billion, equivalent to 43 percent of the public debt, and embodying the core structural issues of Lebanon; a non-functioning confessional system built on the foundation of vested interests.
Topic:
Debt, Infrastructure, Financial Crisis, Economy, and Electricity
Political Geography:
Middle East and Lebanon

5. Ownership in the Electricity Market Property, the Firm, and the Climate Crisis

Author:
Gregory Ferguson-Cradler
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Electricity is a key area in climate mitigation. The sector needs to significantly expand while transitioning to renewable production, all in an extremely short timeframe. This paper fo- cuses on ownership and control in the electricity sector in an era of climate change. Bor- rowing substantially from classical American Institutionalism, heterodox theories and his- tories of the firm, and legal institutionalism, this paper discusses the historically constituted nature of the categories of property, capital, and the firm and how these literatures provide helpful frameworks for analyzing the recent history and possible futures of electricity sec- tors. A short discussion of the recent history of the German electricity sector, particularly the large utility RWE, will briefly illustrate the approach. Climate change mitigation will require revised notions of ownership and an updated theory of the firm, property, and cor- porate governance for the Anthropocene.
Topic:
Climate Change, Energy Policy, Governance, and Electricity
Political Geography:
Europe, Germany, and Central Europe

6. Energy Poverty in Zambia

Author:
Bernard Tembo, Rabecca Hatoongo-Masenke, and Chama Bowa-Mundia
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Of the estimated 3.01 million households in Zambia, in 2015, only 35.8% and 16.1% utilised clean energy fuels for their lighting and cooking services respectively1 (CSO, 2016). Usage and access to clean energy is essential for economic growth, human development and more generally poverty reduction. This notwithstanding, access has remained low in many developing countries. For instance, 1.1 billion of the total global population do not have access to electricity, of which majority are found in Asia, Africa and Oceania (United Nations, 2016). Furthermore, the majority of this population is found in rural areas. Given the centrality of energy to people's everyday life, governments worldwide have devised di erent policies and mechanisms to enhance the use of clean energy. Limited access and use of clean energy is mainly thought of as an issue of a ordability (Barnes and Floor, 1996; Pachauri et al., 2004; Rosnes and Vennemo, 2012; Murtaza and Faridi, 2014; Ismail and Khembo, 2015; GRZ, 2017; Venkateswaran et al., 2018; Kyprianou et al., 2019; Oum, 2019; Yan et al., 2019). Hence, the subsidy policies being implemented in many countries. On the one hand, it has been observed that lack of access to clean energy is a sign of poverty; while on the other hand, access to clean energy helps in the alleviation of poverty (Pachauri et al., 2004; Nussbaumer et al., 2011; Okwanya and Abah, 2018). However, in some cases, access to clean energy is hampered by both the price of the energy (i.e. an a ordability issue) and by availability of infrastructure to deliver the required energy. Thus, in such situations, some governments have had to borrow to facilitate the development and expansion of energy infrastructure; on top of subsidising the use of clean energy. This notwithstanding, the lack of use of clean energy at household level is not well understood. For instance, it is thought that if a household is classi ed as income poor, then it will not be able to use electricity (Pachauri et al., 2004; Murtaza and Faridi, 2014). And in such cases, some governments opt to implement subsidy policies. While this approach has proved useful for some households, it is not an e ective approach of delivering clean energy to the people who need it the most. There is, therefore, great need to identify aspects that determine whether a household would have access to clean energy and let alone use it. This knowledge would be critical in designing policies that hope to increase utilisation of clean energy fuels. As such, this paper sought to understand energy poverty among households in Zambia. Energy poverty is a concept concerned with lack of access and use of modern energy fuels.
Topic:
Energy Policy, Poverty, Infrastructure, and Electricity
Political Geography:
Africa and Zambia

7. Comments on the Draft Electricity (Amendment) Bill, 2020

Author:
Ashwini K. Swain, Parth Bhatia, Ira Sharma, Prasanna Sarada Das, and Navroz K. Dubash
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
The draft Electricity (Amendment) Bill, 2020, released on April 17, 2020, is an improvement from its predecessors. It has dropped some significant proposals that were resisted and has added new provisions. Are these reform proposals adequate and appropriate to address India’s long-standing electricity challenges? Are these prescriptions based on a proper diagnosis of current trends and future challenges? How will these reforms proposals affect India’s ongoing transition to 21st century electricity? While we appreciate the endeavours and intent, in our comments we focus on some serious concerns the draft raises, vital gaps and issues that need serious consideration.
Topic:
Energy Policy, Governance, Legislation, Electricity, Public Service, and Utilities
Political Geography:
South Asia and India

8. Powering Through the Pandemic

Author:
Ashwini K. Swain
Publication Date:
07-2020
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
The disruption caused by the Covid-19 pandemic are consequential for India’s long-term electricity goals. While exacerbating the existing weaknesses in the sector, the pandemic could also affect the trend toward an electricity transition. This report is an attempt to understand the impact of the pandemic on India’s electricity, government responses, and thus, suggest a structural approach to building a resilient electricity future. We find that the Covid-19 caused disruptions in the electricity sector are pervasive and have alarming secondary effects and long-term consequences. While the Central and state governments have been swift to recognise the disruptions, the band-aid approach, focused on fixing existing patterns in the sector, appears inadequate to challenges. Ironically, the long-term electricity reform agenda – proposed in major legislative and policy amendment proposals – shaped in times of a pandemic has failed to internalise the challenges thrown-up and insights gained from the Covid-19 experience. The combination of Covid-19 disruptions, technological driven cost reductions in renewable energy, and the longstanding financial and governance problems of the sector combine to create a ‘critical juncture’ for the sector- a moment to envision a new and alternative configuration of technology, institutions and politics that could transform Indian electricity. While this a long-term and complex conversation, the report suggests illustrative pathways toward these goals.
Topic:
Government, Electricity, Pandemic, and COVID-19
Political Geography:
South Asia and India

9. Electric Vehicle Charging in China and the United States

Author:
David Sandlow and Anders Hove
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Center on Global Energy Policy
Abstract:
At least 1.5 million electric vehicle (EV) chargers have now been installed in homes, businesses, parking garages, shopping centers and other locations around the world. The number of EV chargers is projected to grow rapidly as the electric vehicle stock grows in the years ahead. The EV charging industry is a highly dynamic sector with a wide range of approaches. The industry is emerging from infancy as electrification, mobility-as-a-service and vehicle autonomy interact to produce far-reaching changes in transportation. This report compares EV charging in the world’s two largest electric vehicle markets -- China and the United States – examining policies, technologies and business models. The report is based on more than 50 interviews with industry participants and a review of the Chinese- and English-language literature. Findings include: 1. The EV charging industries in China and the United States are developing largely independently of the other. There is little overlap among the key players in the EV charging industries in each country. 2. The policy frameworks with respect to EV charging in each country differ. The Chinese central government promotes the development of EV charging networks as a matter of national policy. It sets targets, provides funding and mandates standards. Many provincial and local governments also promote EV charging. The United States federal government plays a modest role in EV charging. Several state governments play active roles. 3. EV charging technologies in China and the US are broadly similar. In both countries, cords and plugs are the overwhelmingly dominant technology for charging electric vehicles. (Battery swapping and wireless charging have at most a minor presence.) China has one nationwide EV fast-charging standard, known as China GB/T. The US has three EV fast charging standards: CHAdeMO, SAE Combo and Tesla. 4. In both China and the United States, many types of businesses have begun to offer EV charging services, with a range of overlapping business models and approaches. A growing number of partnerships are emerging, involving independent charging companies, auto manufacturers, utilities, municipalities and others. The role of utility-owned public chargers is larger in China, especially along major long-distance driving corridors. The role of automaker EV charging networks is larger in the United States. 5. Stakeholders in each country could learn from the other. US policymakers could learn from the Chinese government’s multiyear planning with respect EV charging infrastructure, as well as China’s investment in data collection on EV charging. Chinese policymakers could learn from the United States with respect to siting of public EV chargers, as well as US demand response programs. Both countries could learn from the other with respect to EV business models. As the demand for EV charging grows in the years ahead, continued study of the similarities and differences between approaches in China and the United States can help policymakers, businesses and other stakeholders in both countries and around the world.
Topic:
Science and Technology, Infrastructure, Green Technology, and Electricity
Political Geography:
United States, China, Asia, and North America

10. Rural Electricity Supply: Commodity or Entitlement?

Author:
Johannes Urpelainen, Brian Blankenship, and Jason Wong
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center on Global Energy Policy
Abstract:
Quality of electricity service remains poor in many developing countries. Reforms to distorted pricing mechanisms involving citizens increasing their payments in exchange for better service must be done carefully to avoid political backlash and persistent theft. Are people not willing to pay for better electricity quality because they feel entitled to electricity provision, or is it because they do not trust one another to also do their part? In a survey conducted in rural Uttar Pradesh, India, we examine factors that influence stated willingness to pay for better service (i.e., more hours of power per day) among rural households. Our results indicate that the general levels of trust are low, and that entitlement plays less of a role as to whether households are willing or not to contribute to improved electricity quality. Low willingness to pay remains a major obstacle to pricing reform. Generalized trust is strongly associated with higher willingness to pay for better electricity. Delays in service improvements and a lack of community support for pricing reform reduce willingness to pay for better quality. To better foster public support for increasing payments in return for better service, we provide three recommendations as follows. Building trust within the community, across agents, and with utilities could help achieve better rural electricity outcomes. Citizens are unlikely to be willing to contribute or make efforts to participate if the background level of trust remains low. Utilities can help by making credible promises and reducing service delay, or first deliver service improvements before collecting increased payments, as to build upon the trust with the community members, who will in turn be more willing to pay. Properly reducing incentives for theft is important for rural electricity reform. 76 percent of the respondents reported theft as an important obstacle to proper electricity supply, and based on what is observable and on the survey results, we estimate a lower-bound usage rate of illegal night lines to be 20 percent. While proper enforcement can be difficult, a potential solution is to focus on the katiyamen and on the officials who check the villages for theft activities. To disincentivize katiyamen, perhaps a training conversion into a utility company position can reduce katiya spread and actually help convince local residents to join the legal grid system. With officials who neglect theft through night lines or meter tampering, a proper incentive scheme should be in place to prevent accepting bribes. Currently, the incentive structures are set up such that the offending households have an incentive to bribe or bypass the proper process, creating these collected rents—the gap between the willingness to accept illegal payments and the punishment for the resident. Further policy should properly reduce incentives for theft, not only from the household perspective but also from a systems perspective. Poverty alleviation must be taken into account in electricity reform policies. The average willingness to pay for extra hours of electricity tends to be very low—at 40 rupees for four more hours, on average. Continued poverty remains a significant obstacle for proper electricity reform in rural India, and national policy should take into account the impact of income when designing policies to improve electricity outcomes.
Topic:
Poverty, Infrastructure, Rural, and Electricity
Political Geography:
Global Focus