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Research Highlights This paper aims to assess the current progress of RE in this country and identify the impact of business sustainability idea towards RE policy development. The extensive review presented in this work offers a useful reference for policy makers, corporate managers and researchers who have vested interest in business sustainability and renewable energy related studies. ___________________________________________________________________________ Research Objectives The objectives of this study is to explore the evolving concept of business sustainability towards environmental concern and to identify the impact of business sustainability idea towards Malaysia's policy development on RE deployment. Methodology This is conceptual paper where the authors tend to make the analysis by exploring particular theories on business sustainability, renewable energy (RE), and the engagement of RE activities on Malaysia policy development. Results All energy sources have some impact and benefit on our environment. For instance, renewable energy (RE) is energy resource that naturally replenished over time and always can be generated such as solar, wind and hydro energy. However, if the rate of use exceeds the rate of renewal, gradually it will become unsustainable. Thus, to have a sustainable energy which defined as energy production that can last for the foreseeable future is crucial and become main focus of recent national policies, strategies and development plan as of many countries. Malaysia energy consumption still heavily depended on the non- renewable energies (RE) such as fossil fuel and natural gases. Unfortunately, the use of the non-RE is unsustainable and can contribute adversely towards the environment and economic performance of a country. Renewable energy is brought to play as it is believed sustainable and has the potential to thrive in infinitely competitive market of contemporary business nowadays. Therefore, in 2009, the government of Malaysia has announced a National Renewable Energy Policy and Action Plan (NREPAP) as part of their commitment to accelerate the growth of RE as an alternatives energy sources for the coming years. Moving onwards, a strong policy is needed to tackle the challenges in meeting the demand, energy security and also the affordability of energy pricing. Thus, in energy security dimension, perhaps the government should put attention on renewable energy by engaging more on the alternative mechanism to deploy RE capacity through program such as Large-Scale Solar PV, Net Metering as at current practices and also other new initiative like green certificates. The exploration on new RE resource such as wind, geothermal, ocean thermal energy conversion (OTEC) also could assist in build up a new opportunity to enlarge the share of renewable energy mix percentage and ensure the future energy security (UNDP, 2007) Findings The energy industry is changing fast and in multiple directions. It is also regularly known as the catalyst for development in a country. Realizing the importance of energy as a vital dimension in economic and social development, the government of Malaysia has been continuously reviewing its energy policy and practices to ensure long-term sustainability, reliability and security of energy supply (Mohamed & Lee, 2006). The private sector even the communities should also be more corporate in social responsibilities and make compromises for instance by participating in green programs and accepting longer payback periods in RE projects. Nevertheless, continuous efforts and strong support from the societies are vital to ensure RE development can reach its maximum potential. This effort is also supported by (Dincer, 2000) and (Wutenhagen, Wolsink, & Buer, 2007) where they are stressed that increases the public awareness and acceptance on RE, it is as the initial step to make the sustainable energy program successful. This is done through the media, professional organizations, public and government channels. In conclusion, since there is still insufficient insight to critically reasoning the RE development in aspect of business and sustainability, the paper insists to contributes more to the research on energy policies enhancement in Malaysia particularly. This could be a challenge on governing agenda that involves a series of tradeoffs, market players, organizations and companies (Oliveira, 2018) and these efforts are important to ensure the future success of the RE development in Malaysia. Acknowledgement The authors would like to acknowledge Universiti Tenaga Nasional (UNITEN) for the fund granted through the Internal Grant (UNIIG2019), Project code: J510050852. References Dincer, I. (2000). Renewable energy and sustainable development: a crucial review. Renewable and Sustainable Energy Reviews, 4(2), 157–175. Mohamed, A. R., & Lee, K. T. (2006). Energy for sustainable development in Malaysia: Energy policy and alternative energy. Energy Policy, 34(15), 2388–2397. Oliveira, R. L. De. (2018). Powering the future : Malaysia ' s energy policy challenges. Kuala Lumpur: IDEAS Policy Research Berhad. UNDP, United Nations Development Programme. (2007). Energy and Poverty in Malaysia: Challenges and the Way Forward. UNDP. Wutenhagen, R., Wolsink, M., & Buer, M. J. (2007). Social acceptance of renewable energy innovation: An introduction to the concept. Energy Policy, 35, 2683–2691.

Purpose
The purpose of this study was to design a renovation plan for a university campus building (Department of Electrical and Computer Engineering) with the aim to achieve nearly zero energy performance, ensuring a low specific demand (lower than 44 kWh/m2) and a high level of on-site renewable generation (equivalent to more than 20 per cent of the energy demand).


Design/methodology/approach
The baseline demand was characterized based on energy audits, on smart metering data and on the existing building management system data, showing a recent reduction of the electricity demand owing to some implemented measures. The renovation plan was then designed with two main measures, the total replacement of the actual lighting by LEDs and the installation of a photovoltaic system (PV) with 78.8 kWp coupled with an energy storage system with 100 kWh of lithium-ion batteries.


Findings
The designed renovation achieved energy savings of 20 per cent, with 27.5 per cent of the consumed energy supplied by the PV system. This will ensure a reduction of the specific energy of the building to only 30 kWh/m2, with 42.4 per cent savings on the net-energy demand.


Practical implications
The designed renovation proves that it is possible to achieve nearly zero energy goals with cost-effective solutions, presenting the lighting renovation and the solar PV generation system a payback of 2.3 and 6.9 years, respectively.


Originality/value
This study innovated by defining ambitious goals to achieve nearly zero energy levels and presenting a design based on a comprehensive lighting retrofit and PV generation, whereas other studies are mostly based on envelope refurbishment and behaviour changes.

The "hydrogen energy station" is one method of hydrogen production at small and medium scales. Unlike more conventional hydrogen station designs where hydrogen is simply delivered or produced on-site with a fuel "reformer" or water electrolyzer and then compressed and dispensed, energy stations would provide multiple functions in the same facility. They would integrate systems for production of electricity for 1) local uses and/or the utility grid, 2) re-use of thermal energy "waste heat" for building heating/cooling needs, and 3) purified hydrogen for refueling vehicles. Hydrogen energy stations can be of various types and configurations. Most designs to date are based around some type of fuel cell power plant for electricity production, with coproduction of hydrogen either by splitting the stream of hydrogen from a fuel reformer or electrolyzer (to power the fuel cell and provide electricity with one stream and to refuel vehicles with the other) or by using excess hydrogen from the fuel side of the fuel cell system to provide vehicle fuel. A few hydrogen energy station demonstration projects have been conducted in the past few years, and additional projects are anticipated as part of the California Hydrogen Highway Network initiative and other regional distributed power and hydrogen fuel efforts. We suggest that the interest in hydrogen as a transportation fuel offers opportunities for the development of additional hydrogen energy station projects, as we are beginning to see in California. Promoting new projects such as these will allow for the more complete exploration of the varying potential of different designs, configurations, and locations/settings for the energy station concept. Clean Energy Group (CEG) commissioned this report in order to support the Public Fuel Cell Alliance project (PFCA) and to more fully explore the potential for hydrogen energy stations to play an important role in advancing the development of clean and efficient technologies for both stationary and transportation applications. The following are several recommendations for consideration by key stakeholders that have an interest in developing strategies for promoting these new technologies and projects. These recommendations are intended initially for consideration by state clean energy funds. While it is clear that there is no simple, one-size-fits-all program for state action, these are intended to serve as a starting point for in-depth discussions that can lead to state-specific action plans and stakeholder engagement processes. Specific recommendations include: * Integrate Energy Stations Into State Hydrogen Plans: Many states have completed or are undertaking to develop hydrogen "roadmaps." These state-specific plans, which have been completed in California, Ohio, New York and Florida, provide recommendations to capture new economic development opportunities related to hydrogen and fuel cell technologies. Other states, such as Massachusetts and Connecticut, are embarking on similar planning exercises. The energy station concept should be integrated into these existing and emerging hydrogen plans. California, for example, is emphasizing the inclusion of energy station projects in early hydrogen stations for its Hydrogen Highway effort. We believe this is a strategy that can be replicated in other states. * Explore Fleet-Based Opportunities to Deploy Energy Stations: In many settings, there likely exist opportunities for states to deploy energy stations in conjunction with a specific, clustered vehicle fleet. Fleet-based opportunities reduce the need to develop regional networks of refueling stations as envisioned in many "hydrogen highway" proposals and could be implemented in partnership with military, industrial and delivery organizations. In these settings, a single energy station could support the refueling demands of a significant vehicle fleet. Initially, in order to advance these opportunities, state clean energy funds and economic development offices could support and conduct opportunity assessment studies that identify specific fleets, partners and electricity demands. * Foster Public-Private Partnership Development: Energy stations, in order to be successful, require significant partnerships with technology providers and host facilities. These partnerships can be fostered through public support from state clean energy funds, economic development offices and other key players. In particular, funding and support of coalition-building processes can have cross-cutting benefits for other hydrogen-related priorities in specific states. * Proactively Address Regulatory Incentives: Advanced energy technologies require advanced regulatory policies. Many states have implemented regulatory preferences and incentives (such as standby charge exemptions and net metering policies) that recognize and accommodate the public preference for and benefits from fuel cell, hydrogen and clean energy technologies. The regulatory strategies used by these early leaders can be replicated in other states. This kind of support is especially important for energy stations where a key component of the project is providing distributed electricity for the electric grid. Currently, many regulatory barriers prevent the wide-scale adoption of clean distributed generation and limit the ability to quickly site energy stations. State clean energy funds and others can assist by facilitating information-sharing about the best model regulations that can overcome barriers to distributed generation facilities. * Develop Compelling Communications Strategies: The concept of using hydrogen in consumer settings has been plagued with public misperceptions and lack of awareness of the significant potential benefits and remaining challenges. In recent years, many states have conducted sophisticated consumer and stakeholder research that has resulted in new communications campaigns to increase public understanding and support for clean energy technologies. Many states, for example, recently joined together to develop and fund a "Clean Energy: It's Real, It's Here, It's Working. Let's Make More" branding campaign. This kind of proactive communications strategy would yield tremendous results for the hydrogen sector, helping to organize currently disparate enthusiasm for hydrogen with a single, compelling message while also helping to manage expectations regarding the types and timing of hydrogen technologies that are likely to be introduced.

Inhaltsangabe: Introduction: This book covers policy proposals and interim contracts, assesses the positions of various Iraqi political actors and examines the potential significance for international foreign policy goals in Iraq. Despite a lack of progress in reaching agreements on the hydro-carbon sector and revenue sharing legislation to set new conditions for the management of the country's significant oil and gas resources, development in Iraq's oil and gas sector is moving forward. The passage of the oil and gas sector framework and revenue sharing legislation will be seen as significant milestones by International governments and International Oil Companies (IOC´s). This would provide evidence of the Iraqi government's dedication to promoting political reconciliation and providing a solid foundation for long term economic development in Iraq. Interim revenue sharing mechanisms have been introduced due to the lack of new legislation. Additionally, both the Federal Government (the Federal Oil Ministry-MoO) and the Kurdistan Regional Government (KRG) (the Regional Ministry of Natural Resources and Energy) have made oil and gas development deals with foreign firms. The MoO is working with existing regulation from the previous political and administrational regime, while the Regional Ministry of Resource and Energy Kurdistan-Iraq has designed its own laws and regulations, which the Federal Government has not yet recognized. There is wide recognition among Iraqis of the importance of oil and gas revenue for the Iraqi economy. Most groups see the need for new legal and policy guidelines for the development of the country's oil and natural gas resources. However, Iraq's Council of Rrepresentatives (parliament) has not yet considered the proposed legislation due to ongoing political discord and general political instability. There are strong differences on key issues between Iraqi critics and supporters of various proposed solutions. These include the appropriate role and powers of federal and regional authorities in regulating oil and gas development; the conditions and degree of potential foreign participation in the oil and gas sectors; and proposed formulas and mechanisms for equitably sharing oil and gas revenue. Simultaneously, there are strong disagreements on related discussions about the administrative status of the city of Kirkuk and proposed amendments to articles of Iraq's constitution that outline federal and regional oil and gas rights. The U.S. and UK military strategy in Iraq seeks to lay the ground work for an environment in which Iraqis can resolve core political differences in order to ensure national stability and security. However, it is not yet certain whether the proposed oil and gas legislation and ongoing interim efforts to develop Iraq's energy resources will support harmony or create deeper political tension. The United States and its allies face difficult decisions regarding how to work with Iraqis on assorted policy proposals, related constitutional reforms and oil and gas development contracts, and at the same time encouraging their Iraqi counterparts to ensure that the content of proposed laws, amendments and contracts reflect acceptable political compromises. In the 1920s a wide-ranging concession was granted to a consortium of oil companies known as the Turkish Petroleum company and later as the Iraq Petroleum Company. This was the beginning of oil exploration in Iraq. The nationalization of Iraq's oil resources and production was finished by 1975. From 1975 to 2003, oil production and export operations were entirely state operated. However, from the early 1980s until the toppling of Saddam Hussein's government in 2003, the negative effects of war, international sanctions, a shortage of investments and technology and, in many cases, mismanagement caused difficulties for Iraq's hydrocarbon infrastructure. According to the Oil Ministry, Iraq has the third largest proven oil reserves in the world (115 billion barrels). Other estimates of Iraq's potential oil reserves vary. The U.S. Department of Energy's Energy Information Administration notes that current estimates "have not been revised since 2001 and are largely based on 2-D seismic data from nearly three decades ago." In April 2007, oil industry consultants IHS assessed that Iraq's proven and probable reserves tally 116 billion barrels, with a potential additional 100 billion barrels in largely unexplored western areas. The U.S. Geological Survey's median estimate for additional oil reserves in Iraq is around 45 billion barrels. In 2004, Iraq's then Oil Ministry claimed that Iraq had "unconfirmed or potential reserves" of 214 billion barrels. My Reservoir Engineering Estimation is that Iraq's reserves can reach more than 320 bn bbl oil. Approximately 65 percent of Iraq's current proven reserves are located in southern Iraq, with a concentration in the southern most province of Al Basrah. Large proven oil resources have also been found in the northern province of Al Ta´mim near the disputed city of Kirkuk At present, crude oil provides over 90% of Iraq's domestic energy consumption and oil exports produce over 98% of Iraq's government revenue. Due to decreases in global oil prices from their 2008 high and lower oil production, Iraqi leaders revised their 2009 revenue and budget assumptions from a projected surplus to a projected $15.9 billion deficit. According to official U.S. assessments continued fluctuations in oil prices and production could put at risk Iraq's fiscal stability and the sustainability of its reconstruction and development plans. The expansion of oil production to the level of four million barrels per day (m/d) by 2013 and then upward to six m/d by 2017 is called for by current Iraqi plans. Iraqi officials have begun an international bid process for service contracts and renegotiated a series of Saddam era oil production agreements in order to support these goals. These include the transformation of a production sharing agreement into a service contract for Ahdab oil field with China National Petroleum Corporation (CNPC).Inhaltsverzeichnis:Table of contents: 1.Introduction1 2.Iraqi Constitution7 3.Contract Conditions15 4.State-owned Oil Companies27 5.Restructuring of the Iraqi Oil Institutions33 6.Revenue-Sharing and Equalization36 7.Potential Geography50 8.Present Organization and Development56 9.Hydrocarbon Legislation Draft and Contracts59 10.Revenue Sharing65 11.Crisis Management of the Oil Industry in Iraq88 12.U.S. Policy and Issues for Congress99 13.China Investment in the Energy Sector112 14.Conclusion119 15.References127 16.Attachments129Textprobe:Textsample: Revenues and Arrangements: Under current arrangements, the responsibility for the sale and export of Iraq's crude oil is appointed to Iraq's State Oil Marketing Organization (SOMO). The United Nations Security Council resolution (UNSCR) 1483 (and updated under subsequent Security Council resolutions) stipulates that revenue from Iraq's oil exports is to be deposited into an Iraq-controlled account held at the Federal Reserve Bank of New York (FRBNY). Five percent of the funds are put aside for a United Nations Compensation Fund for reparations to the victims of the 1990 Iraqi invasion and occupation of Kuwait. The remaining 95% are deposited into a Development Fund for Iraq (DFI) account at the FRBNY and then transferred to an Iraqi Ministry of Finance account at the Central Bank of Iraq for further distribution to Iraqi government ministries. The terms of UNSCR1546 and subsequent resolutions mandate that the DFI be monitored by an International Advisory and Monitoring Board (IAMB), which provides periodic reports on Iraq's oil export revenue, Iraq's use of its oil revenues, and its oil production practices. According to the IAMB, as of December 31, 2007, $23.43 billion had been disbursed from the United Nations Compensation Fund and Iraq owed $28.95 billion to the Fund. Iraq deposited another $3 billion. According to IAMB estimates in mid 2008 "at the present rate of Iraqi oil sales, it would take approximately 17 years for the compensation award to be fully paid."38 It is likely that this estimate is no longer current due to significant declines in the price of oil in the meantime. The IAMB has not yet announced a corrected date. Under U.N. Security Council Resolution 1859 (December 22, 2008) the IAMB authority ends on December 31, 2009. This refers to a 2009 "transition to successor arrangement" from the DFI and the IAMD to Iraqi-led auditing processes. In October 2006, the Committee of Financial Experts (COFE) was approved by the Iraqi cabinet. Its task is to oversee oil revenue collection and administration. The president of the COFE authorized its activities in April 2007, and it currently is working with the IAMB on audit procedures. The establishment of an audit oversight committee for the DFI and oil export revenues is a structural benchmark under Iraq's Stand-by Arrangement (SBA) with the International Monetary Fund currently satisfied by the extension of the IAMB arrangement and the creation of the COFE. Agreements with members of the Paris club made the approval of the SBA into a necessity.39 The IAMB said in 2009 that Iraq's Committee of Financial Experts "is ready and capable to succeed the IAMB and conduct competent and independent oversight of the DFI." Immunity provisions included in standing UN Security Council resolutions protect Iraqi funds in the DFI from property attachment motions instead of legal judgments rendered against the former Iraqi regime. President Bush extended the U.S. legal protections for the DFI and other Iraqi assets under Executive Order 13303 through May 20, 2009. President Obama prolonged the protections until May 2010.40 Iraq will receive continued support from the United States in its attempts to convince the UN to extend related protections for energy proceeds and the DFI under Article 26 of the U.S.-Iraq security agreement. Oversight of Oil Production and Revenue Management Between its creation in May 2003 until December 31, 2007, the DFI received over $121.7 billion in oil proceeds and other deposits. According to audit estimates, an additional $58.8 billion in net export proceeds were deposited in 2008. Intermittent audits done in conjunction with the IAMB have routinely found serious discrepancies in oil production and export figures and DFI account receipt and distribution amounts. The absence of reliable output measurements for oil has been a critical and ongoing problem. During the Coalition Provisional Authority (CPA) period, there was no metering equipment available for oil production and exports. According to a May 2007 GAO report, there have been no improvements in reliable metering in Iraq's oil fields. This has contributed to the shortage of reliable data on Iraq's oil production and related revenue.42. In January 2008, an IAMB report claimed that Iraq's Ministry of Oil "does not have in place a full operational loading and metering system at production and loading points in order to determine produced and loaded quantities [of oil] accurately." An IAMB report in June 2008 established that "some metering has been installed at oil terminals, but there continues to be no metering in the oil fields." In April 2009, the IAMB stated that "much remains to be done before a fully operational control and measurement system over the oil production, distribution and export sales, can be comprehensively implemented," and added that, "Indications from the Ministry of Oil point to implementation by 2011 at the earliest." Financial audits completed by December 2005 established that "no comprehensive financial and internal controls policies and procedures manuals" existed in the Iraqi ministries that were spending oil export proceeds delivered through the DFI system. On June 12, 2007, the IAMB commented on its 2006 findings, noting that the audits proved "the overall financial system of controls is deficient." The audits showed there was "no overall comprehensive system of controls over oil revenues," and that "basic administrative procedures" were "outdated and ineffective." These conditions may have contributed to widespread corruption. Several Iraqi ministries spending distributed oil export revenue have been accused of corruption which is often associated with weak contracting and cash management policies. The Iraqi government's attempts to respond to IAMB recommendations were noticed by the IAMB's preliminary findings for 2007, but also noted that "the overall financial system of controls in place in the spending ministries, the U.S. agencies in respect of outstanding commitments using DFI resources, and the Iraqi administration of DFI resources remain deficient." The 2008 preliminary assessment, released in April 2009, concluded that "much remains to be done before a sound financial management system is operating effectively in Iraq".

2017 Summer. ; Includes bibliographical references. ; The electricity infrastructure in Saudi Arabia is facing several challenges represented by demand growth, high peak demand, high level of government subsidies, and system losses. This dissertation aims at addressing these challenges and proposing a multi-dimensional framework to modernize the electricity infrastructure in Saudi Arabia. The framework proposes four different scenarios—identified by two dimensions—for the future electric grid. The first and second dimensions are characterized by electricity market deregulation and Smart Grid technologies (SGTs) penetration, respectively. The framework analysis estimates global welfare (GW) and economic feasibility of the two dimensions. The first dimension quantifies the impact of deregulating the electricity market in Saudi Arabia. A non-linear programming (NLP) algorithm optimizes consumers surplus, producers surplus, and GW. The model indicates that deregulating the electricity market in Saudi Arabia will improve market efficiency. The second dimension proposes that allowing the penetration of SGTs in the Saudi electricity infrastructure is expected to mitigate the technical challenges faced by the grid. The dissertation examines the priorities of technologies for penetration by considering some key performance indicators (KPIs) identified by the Saudi National Transformation Program, and Saudi Vision 2030. A multi-criteria decision making (MCDM) algorithm—using the fuzzy Analytic Hierarchy Process (AHP)—evaluates the prioritization of SGTs to the Saudi grid. The algorithm demonstrates the use of triangular fuzzy numbers to model uncertainty in planning decisions. The results show that advanced metering infrastructure (AMI) technologies are the top priority for modernizing the Saudi electricity infrastructure; this is followed by advanced assets management (AAM) technologies, advanced transmission operations (ATO) technologies, and advanced distribution operations (ADO) technologies. SGTs prioritization is followed by a detailed cost benefit analysis (CBA) conducted for each technology. The framework analysis aims at computing the economic feasibility of SGTs and estimating their outcomes and impacts in monetary values. The framework maps Smart Grid assets to their functions and benefits to estimate the feasibility of each Smart Grid technology and infrastructure. Discounted cash flow (DCF) and net present value (NPV) models, benefit/cost ratio, and minimum total cost are included in the analysis. The results show that AAM technologies are the most profitable technologies of Smart Grid to the Saudi electricity infrastructure, followed by ADO technologies, ATO technologies, and AMI technologies. Considering the weights resulting from the fuzzy AHP and the economic analysis models for each infrastructure, the overall ranking places AAM technologies as the top priority of SGTs to the Saudi electricity infrastructure, followed by AMI technologies, ADO technologies, and ATO technologies. This dissertation has contributed to the existing body of knowledge in the following areas: • Proposing an econometric framework for electricity infrastructure modernization. The framework takes into account technical, economic, environmental, societal, and policy factors. • Building an NLP algorithm to optimize a counterfactual deregulation of a regulated electricity market. The algorithm comprises short run price elasticity of electricity demand (ε), level of technical efficiency improvement, and discount rate (r). • Proposing an MCDM model using AHP and fuzzy set theory to prioritize SGTs to electricity infrastructures. • Adapting a Smart Grid asset-function-benefit linkage model that maps SGTs to their respected benefits. • Conducting a detailed CBA to estimate the economic feasibility of SGTs to the Saudi electricity infrastructure, This work opens avenues for more analysis on electricity infrastructure modernization. Measuring risk impact and likelihood is one area for future research. In fact, risk assessment is an important factor in determining the economic feasibility of the modernization. Probabilistic economic analysis can be applied to assess the risk associated with the implantation of the previously mentioned dimensions. The parameters used for the economic analysis, such as economic life of a project, and the discount rate, are usually deterministic. However, a probabilistic method can be applied to capture the uncertainty of the parameters. Another area for future research is the integration of both dimensions into one model in which GW resulted from market deregulation and SGTs insertion are summed.

This post is co-authored by Susanna Berkouwer, Eric Hsu, Edward Miguel, and Catherine Wolfram, based on a study supported by CEGA. This post was originally posted on the Energy for Growth Hub blog.Electrician from Kenya Power | Rod WaddingtonGovernments and foreign aid institutions routinely finance large infrastructure construction projects in developing and emerging markets. In 2015, for example, the Government of Kenya launched the Last Mile Connectivity Project, designed to connect all Kenyan households to electricity by 2022 using financing from the World Bank (WB) and the African Development Bank (AfDB). To complete construction at the approximately 20,000 villages selected for the program, Kenya Power awarded dozens of private sector contracts to procure goods and services. However, distinct processes and regulations applied to villages where construction was financed by the WB and villages where construction was financed by the AfDB. We combined this natural variation with a randomized audit experiment to understand how procurement policies impacted the timing, cost, quantity, and quality of construction on the ground in a new research paper, titled "Donor contracting conditions and public procurement: Causal evidence from Kenyan electrification."Kenya's Last Mile Connectivity Project (LMCP)In a May 2015 Presidential Address, Kenya's president Uhuru Kenyatta launched the LMCP with the goal of connecting "one million new customers to electricity each year." As of 2017, there were around 60,000 electrical transformers across Kenya, which convert high- and medium-voltage power lines (33kV or 11kV) to low voltage (usually 0.415kV) that can be connected to households. The LMCP was to connect all unconnected households within 600 meters of a transformer by extending the local LV network through a process called 'maximization'. Phase I targeted the maximization of 8,520 transformers, with the AfDB financing 5,320 and the WB financing 3,200: Kenya Power assigned these in a largely arbitrary manner. Panel A of Figure 1 shows that AfDB- and WB-funded villages are distributed evenly across Kenya.FIGURE 1: Locations of Last Mile Connectivity Project villages across Kenya. Panel A plots LMCP sites that were funded by the WB and AfDB Phase I across all of Kenya. Panel B zooms in on the sites in the five study counties (Kakamega, Kericho, Kisumu, Nandi, Vihiga). Panel C shows the random assignment to an audit treatment.World Bank and the African Development Bank procedural conditionsThere are two key differences in the procedures used by the WB and the AfDB in this context. First, the AfDB used a bundled contracting style known as 'turn-key', or bundled, contracting (Panel A of Figure 2). Each AfDB turn-key contract comprised the entire construction process of all LMCP transformers in one of ten geographical clusters of counties. This included designing an efficient extension of the LV network to reach all unconnected households at a site, procuring the materials required to complete those designs, and installing materials according to the designs. Together with a metering contract and a consulting contract, Kenya Power awarded 12 LMCP contracts under the AfDB component. The WB, on the other hand, opted for an unbundled approach for the LMCP (Panel B of Figure 2), awarding 35 contracts, including four consulting contracts, eight design contracts, six contracts to procure wooden poles, three for concrete poles, three for conductors, three for cables, two for meters, and finally six contracts for installation.FIGURE 2: Contracting structures. Panel A displays the structure of bundled contracting employed by the AfDB. Panel B displays the structure of unbundled contracting employed by the WB.The second key difference between the funders is that the WB required an additional inspection report after construction. To understand the impact of such an ex-post inspection, we implemented a randomized controlled trial. Panel C of Figure 1 shows which sites were in the control and treatment arms. Members of our research team met with contractors in person to inform them of the randomly selected subset of treatment sites, which we tell them will be audited after construction. Given that the WB procedures already included a round of ex post audits, this additional round of audits should have a larger impact at AfDB sites than at WB sites.Collecting on-the-ground construction and power quality dataTo understand how the procedural differences affect construction outcomes on the ground, we collected data on 380 LMCP villages (shown in Panel B of Figure 1):GPS and engineering quality measurements of transformers, poles, and wires, as well as accessories like struts and stays.Household surveys on connection cost, timing, and experience.Minute-by-minute outage and voltage data quality from 600 households collected using nLine's PowerWatch devices.Original contracts signed between Kenya Power and contractors.Qualitative interviews: with senior leadership at Kenya Power, the WB, and the AfDB.FIGURE 3: Example of a Last Mile Connectivity Project (LMCP) Village. Each LMCP site is centered around a transformer from which low-voltage wiring extends to connect households and businesses to the grid. The gray circle denotes the 600m eligibility radius and the blue circle denotes our 700m surveying threshold.In addition to these primary data, we analyze 2009 Census data, VIIRS nighttime radiance data, land gradient data, and HERE Maps travel data.ResultsWe identified three main results:Households in villages funded by the AfDB are connected to electricity on average 8 months sooner than households in villages funded by the WB. This delay is caused primarily by the increased bureaucratic requirements resulting from the larger number and heterogeneity in WB contracts, as well as poor coordination between the various stages of WB contracting.Second, more poles and household connections were constructed at AfDB sites, driven in part by the WB's stricter adherence to the rule that only households within 600m of the transformer were to be connected.Third, WB processes, while taking longer, do generate tangible benefits: on-the-ground construction quality is 0.6 standard deviations higher at WB sites than AfDB sites, driven largely by the increased presence of pole caps, stays/struts, and grounding wires. While this does not lead to any improvements in voltage quality or power outages, these improvements are likely to improve grid longevity, lowering long-term maintenance and replacement costs.We also found that the additional audit treatment improved construction quality at AfDB sites but not at WB sites, which already saw rigorous ex-post inspections. These results hold across three different outcomes: the audit treatment increases the number of poles constructed at AfDB sites (but not at WB sites), improves average voltage by 5V at AfDB sites (but not at WB sites), and improves household installation quality and electricity usage at AfDB sites (but not at WB sites). Taken together, these results suggest that the additional inspection prescribed by WB procedures has an important effect on construction quality.Evaluating the relative net benefits of the two approaches requires understanding the long- and short-term costs and benefits: the WB procedures delayed the household connection date but reduced long-term maintenance costs when compared with AfDB procedures. We calculate that even a reasonable set of assumptions indicate anywhere from a USD 5.6mn net benefit of AfDB processes to a USD 2.8mn net benefit of WB processes. Neither method is necessarily the best option, and the optimal contracting structure will depend on the project's goals. Governments looking to spur short-term electrification may prefer the bundled method used by AfDB, whereas governments prioritizing longer term trade-offs may want to employ the unbundled method used by WB.Power Quality in Donor-Funded Infrastructure Projects was originally published in CEGA on Medium, where people are continuing the conversation by highlighting and responding to this story.

The steep decline in the world oil price in the last quarter of 2014 slashed fuel price subsidies. Several governments responded by announcing that they would remove subsidies for one or more fuels and move to market-based pricing with full cost recovery. Other governments took advantage of low world prices to increase taxes and other charges on fuels. However, the decision to move to cost recovery and market prices, ending budgetary support, has not been implemented consistently across countries. Policy announcements have varied in the way they were communicated and the level of detail provided. When petroleum product prices bounced back during the first half of 2015, some reforming governments failed to raise prices correspondingly. Recent experience suggests that regular and frequent price adjustments, however small—as in Jordan and Morocco—help the government and consumers to get accustomed to fluctuations in world fuel prices and exchange rates. By contrast, freezing prices, even for a few months—for socioeconomic considerations or because the needed adjustments are small enough to be absorbed—increases the risk of reversion to ad hoc pricing and price subsidies. The more formally the decision to move to market-based pricing is communicated, the more public new price announcements, and the higher the frequency of price changes, the more likely the implementation of the announced pricing policy reform will be sustained.