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Challenges

A well-functioning power industry providing high quality services at a reasonable cost is an essential condition for economic recovery and growth in the region. Depending on the subregion, some of the key issues facing the industry are:

  • iThe quality of the electricity supplied to final consumers is sometimes poor (i.e., voltage instability and service interruptions).
  • Power generation capacityfacilities in some regions is are obsolete, overstaffed, inefficient, and heavily polluting.
  • Emerging capacity shortages in some regions brings the consequent need to integrate electricity markets in order to avoid unnecessary generation investments.
  • There are frequently poor dispatch and communication systems.
  • pThere is often low cost recovery because of low tariffs, high losses, and/or low payment collection ratios.
  • The industry model is rapidly changing, shifting from vertically integrated, publicly owned monopolies toward unbundled, competitive systems either in a single sector or in several sectors simultaneously.
  • There is a lack of transparent, predictable regulatory framework, a situation that diminishes the attractiveness of the power industry to an important source of financing, i.e., private investors.



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