|
|
| (16 intermediate revisions by one user not shown) |
| Line 6: |
Line 6: |
| | | | |
| | <u>There are different goals for integrating IPPs into the nationals, but USAID has summarized the following three goals:</u><ref>Gardiner, M.& Montpelier, V., Best Practices Guide: Implementing Power Sector Reform.Available at:http://pdf.usaid.gov/pdf_docs/PNACQ956.pdf</ref> | | <u>There are different goals for integrating IPPs into the nationals, but USAID has summarized the following three goals:</u><ref>Gardiner, M.& Montpelier, V., Best Practices Guide: Implementing Power Sector Reform.Available at:http://pdf.usaid.gov/pdf_docs/PNACQ956.pdf</ref> |
| | + | |
| | *''"Attract outside capital to meet rapidly growing electricity needs without imposing large strains on the nations internal financial capabilities;'' | | *''"Attract outside capital to meet rapidly growing electricity needs without imposing large strains on the nations internal financial capabilities;'' |
| | *''Reduce electricity costs though competitive pressures; and,'' | | *''Reduce electricity costs though competitive pressures; and,'' |
| | *''Assign risks in a more efficient or desirable manner''." | | *''Assign risks in a more efficient or desirable manner''." |
| | | | |
| − | <br/> | + | <br/>Integrating IPPs into the Grid |
| − | | + | |
| − | = Integrating IPPs into the Grid =
| + | |
| | | | |
| | The criteria for integrating IPPs into the electricity market depends on the specific country. However, there are generally four models used to describe the integration of IPPs into the grid. The picture below summarizes the four different models.<ref>Eberhard, A.Independent Power Producers and Power Purchase Agreements:Frontiers of International Experience. Available at:http://www.naruc.org/international/Documents/S17%20-%20Eberhard.pdf</ref> | | The criteria for integrating IPPs into the electricity market depends on the specific country. However, there are generally four models used to describe the integration of IPPs into the grid. The picture below summarizes the four different models.<ref>Eberhard, A.Independent Power Producers and Power Purchase Agreements:Frontiers of International Experience. Available at:http://www.naruc.org/international/Documents/S17%20-%20Eberhard.pdf</ref> |
| | | | |
| − | [[File:Integrating IPPs into the grid.JPG|border|center|600px|Integrating IPPs into the grid|alt=Integrating IPPs into the grid]] | + | [[File:Integrating IPPs into the grid.JPG|border|center|600px|Integrating IPPs into the grids|alt=Integrating IPPs into the grid]] |
| | | | |
| | Source:[http://bit.ly/1pKLE33| Independent Power Producers and Power Purchase Agreements: Frontiers of International Experience]<br/> | | Source:[http://bit.ly/1pKLE33| Independent Power Producers and Power Purchase Agreements: Frontiers of International Experience]<br/> |
| Line 22: |
Line 21: |
| | <br/> | | <br/> |
| | | | |
| − | = Risk for <span dir="auto">Independent Power Producers (IPPs)</span> = | + | = <br/>Risk for <span dir="auto">Independent Power Producers (IPPs)</span> = |
| | | | |
| | Before investing in electricity generation, IPPs need to consider various factors like revenue security, market demand, and contract procurement. The following table from ''Best Practices Manual from USAID'' summarizes the risks of IPPs.<ref>Gardiner, M.& Montpelier, V., Best Practices Guide: Implementing Power Sector Reform.Available at:http://pdf.usaid.gov/pdf_docs/PNACQ956.pdf</ref> | | Before investing in electricity generation, IPPs need to consider various factors like revenue security, market demand, and contract procurement. The following table from ''Best Practices Manual from USAID'' summarizes the risks of IPPs.<ref>Gardiner, M.& Montpelier, V., Best Practices Guide: Implementing Power Sector Reform.Available at:http://pdf.usaid.gov/pdf_docs/PNACQ956.pdf</ref> |
| Line 30: |
Line 29: |
| | <br/> | | <br/> |
| | | | |
| − | However, there are different mechanism to curb these risks namely,[[Power_Purchase_Agreement_(PPA)_-_Wind_Energy|Power Purchase Agreement (PPA)]],sovereign guarantees or feed in tariffs. <ref> Clark Energy. Available at: http://www.clarke-energy.com/2013/gas-engines-for-ipps/</ref> | + | However, there are different mechanism to curb these risks namely,[[Power Purchase Agreement (PPA) - Wind Energy|Power Purchase Agreement (PPA)]],sovereign guarantees or feed in tariffs. <ref> Clark Energy. Available at: http://www.clarke-energy.com/2013/gas-engines-for-ipps/</ref> |
| | | | |
| | <br/> | | <br/> |
| | | | |
| − | = Tendering Process for IPPs =
| + | Tendering Process for IPPs |
| | | | |
| | To understand the tendering process for IPPs, see | | To understand the tendering process for IPPs, see |
| | + | |
| | *[[Wind Energy Country Analyses Pakistan#Licensing and Permitting Procedure|Tendering in Pakistan]] | | *[[Wind Energy Country Analyses Pakistan#Licensing and Permitting Procedure|Tendering in Pakistan]] |
| | *[[Wind Energy Country Analysis Vietnam#Permission procedures|Tendering in Vietnam]] | | *[[Wind Energy Country Analysis Vietnam#Permission procedures|Tendering in Vietnam]] |
| Line 42: |
Line 42: |
| | <br/> | | <br/> |
| | | | |
| − | = Corruption during IPPs Contract Procurement =
| + | Corruption during IPPs Contract Procurement |
| | | | |
| | Normally, the involvement of private parties in contract procurement is expected to reduce corruption and increase transparency, <u>but IPPs contract procurement can be corrupted due to the following reasons:</u><ref>Deterring Corruption and Improving Governance in the Electricity Sector: A Sourcebook. Available at: http://siteresources.worldbank.org/INTENERGY2/Resources/electricitysourcebookch7.pdf </ref> | | Normally, the involvement of private parties in contract procurement is expected to reduce corruption and increase transparency, <u>but IPPs contract procurement can be corrupted due to the following reasons:</u><ref>Deterring Corruption and Improving Governance in the Electricity Sector: A Sourcebook. Available at: http://siteresources.worldbank.org/INTENERGY2/Resources/electricitysourcebookch7.pdf </ref> |
| | + | |
| | *IPPs contract are of a high value and thus attract embezzlement from public and private entities. | | *IPPs contract are of a high value and thus attract embezzlement from public and private entities. |
| | *IPPs contract are generally drafted under the crisis situation and are flexible. Thus, the involved parties can justify the deviation from least-cost method and can embezzle the funds. | | *IPPs contract are generally drafted under the crisis situation and are flexible. Thus, the involved parties can justify the deviation from least-cost method and can embezzle the funds. |
| Line 51: |
Line 52: |
| | | | |
| | <br/> | | <br/> |
| − |
| |
| | | | |
| | = Further Information = | | = Further Information = |
| Line 57: |
Line 57: |
| | *[[Portal:Grid|Grid Portal on energypedia]] | | *[[Portal:Grid|Grid Portal on energypedia]] |
| | *[http://pdf.usaid.gov/pdf_docs/PNACQ956.pdf Best Practices Guide: Implementing Power Sector Reform , Chapter 2]<br/> | | *[http://pdf.usaid.gov/pdf_docs/PNACQ956.pdf Best Practices Guide: Implementing Power Sector Reform , Chapter 2]<br/> |
| − | *[[Role_of_Independent_Power_Producers_(IPPs)_in_Electricity_Generation_in_Nepal|Role of Independent Power Producers (IPPs) in Electricity Generation in Nepal]] | + | *[[Role of Independent Power Producers (IPPs) in Electricity Generation in Nepal|Role of Independent Power Producers (IPPs) in Electricity Generation in Nepal]] |
| − | *[[Operation_Models_(IPP,_BOT)_-_Wind_Energy|Operation Models (IPP, BOT) - Wind Energy]] | + | *[[Operation Models (IPP, BOT) - Wind Energy|Operation Models (IPP, BOT) - Wind Energy]] |
| | | | |
| | <br/> | | <br/> |
| − |
| |
| | | | |
| | = References = | | = References = |
| Line 67: |
Line 66: |
| | <references /><br/> | | <references /><br/> |
| | | | |
| | + | [[Category:Grid]] |
| | + | [[Category:Mini-grid]] |
| | + | [[Category:Financing_and_Funding]] |
| | [[Category:Electricity]] | | [[Category:Electricity]] |
| − | [[Category:Grid]]
| |
IPPs invest in generation technologies and recover their cost from the sale of the electricity. They can be great help to country's energy sector (especially when the public sectore do not have the required financial capacity for investment).
The criteria for integrating IPPs into the electricity market depends on the specific country. However, there are generally four models used to describe the integration of IPPs into the grid. The picture below summarizes the four different models.[4]
Before investing in electricity generation, IPPs need to consider various factors like revenue security, market demand, and contract procurement. The following table from Best Practices Manual from USAID summarizes the risks of IPPs.[5]
Normally, the involvement of private parties in contract procurement is expected to reduce corruption and increase transparency, but IPPs contract procurement can be corrupted due to the following reasons:[7]
