This paper covers qualitative case studies from Iran, Nigeria, and India to illustrate a series of lessons for governments implementing subsidy reform policies. From these three country experiences, we find that fostering public support to implement lasting reform may depend on four measures: (1) forming a public engagement plan and a comprehensive reform policy that are then clearly communicated to the public in advance of price increases; (2) phasing in price adjustments over a period of time to ease absorption; (3) providing a targeted compensatory cash transfer to alleviate financial impacts on low- to middle-income households; and (4) capitalizing on favorable global macroeconomic conditions.
Todd Moss testified before the Senate Foreign Relations Subcommittee on Multilateral International Development, Multilateral Institutions, and International Economic, Energy, and Environmental Policy at a hearing titled “Energy and International Development” on November 1, 2017. During his appearance before the Committee, Todd detailed how US efforts to expand meaningful—modern—energy access in sub-Saharan Africa serve US interests and offered recommendations for strengthening Power Africa.
In the past decade, Ghana has experienced severe electricity supply challenges even though installed generation capacity has more than doubled over the period. The electricity supply challenges can be attributed to a number of factors, including a high level of losses in the distribution system as well as non-payment of revenue by consumers. Solving Ghana’s electricity challenges would require a range of measures.
This paper finds that end-user financing (i.e. consumer subsidies and tax rebates) is relatively ineffective at enhancing sales of off-grid solar technologies in India. If the government is to make meaningful progress toward its national goal to extend a constant supply of electricity to every household in the coming years, it will need to learn from and adapt its current financing structures for off-grid solar (and other renewable energy) technologies.
The Digital Transformation and Disruptive Technologies: Challenges and Solutions for the Electricity Sector in African Markets
The rise of disruptive technologies is profoundly transforming systems of production and management across sectors and industries, but primarily in wealthy countries. This paper considers how disruptive technologies could help improve power sector reform and development in African markets.
My family’s ancestral home in the village of Jakhan in India’s western state of Rajasthan exemplifies the challenges and opportunities of facilitating energy access in India. Though Rajasthan is perhaps the most densely populated desert on the planet, near Jakhan the population is spread more thinly, and electrification has been slow in coming. The dreams of people such as my grandparents, who wished to see central electricity access arrive at their doorstep, were unfortunately not met in time. My grandfather filed an application to have a grid connection reach his home in the 1970s. The connection came three decades after his passing. Today, over 300 million people still lack access to reliable centralized electricity in this nation of 1.2 billion people.