Smart electricity distribution networks, business models, and application for developing countries

Tooraj Jamasb, Tripta Thakur, Baidyanath Bag
2018 Energy Policy  
Additional information: Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the
more » ... pyright holders. Please consult the full DRO policy for further details. Abstract The electricity distribution industry in the developing world is dominated by public sector utilities. These utilities are technically and economically inefficient and face large financial losses that prevent further development of the networks. The reforms are introduced to unbundle the vertically integrated utilities and introduce private investment and management, but these efforts often fail due to poorly designed market and incentive models. Focusing on the electricity distribution in developing countries, we propose a business model based on organizing the utilities into distinct activities and businesses. In many developing countries political economy and weak investment 2 | P a g e conditions do not favour full privatization of utilities. However, in some activities 'competition for the market' and 'management contracts' can provide a partial role for the private actors. The model is based on the concepts of enterprise innovation, emphasizing external collaboration and partnerships and can be operationalized via specialization, where some specific tasks are outsourced. The proposed model can also be applied to developed countries as the energy sectors of both developing and developed countries are undergoing transformation due to new technologies such as communications, distributed generation (DGs), and active demand response.
doi:10.1016/j.enpol.2017.11.068 fatcat:x5draylgbzdarg55jlhime3vim