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Power interruption costs to industries in Cameroon

B.S. Diboma and T. Tamo Tatietse

Energy Policy, 2013, vol. 62, issue C, 582-592

Abstract: This study focusses on the estimation of power interruption costs to industries in Cameroon. Those interruptions are the result of perturbations sustained by the power network. A normalised direct worth (NDW) approach was used as a direct method for assessment, while the compensatory estimation method (CEM) was used for indirect assessment. A survey was conducted with a representative sample of industries in Cameroon using a questionnaire as the main research instrument. The results show that power interruption losses are very significant. Using the direct method for assessment, the average outage cost varies from €3.62/kWh to €5.42/kWh for a 1-h interruption and from 1.96/kWh to €2.46/kWh for a 4-h outage. The study finds that advance suspension notices could help in reducing outage costs by 19.83–33%. With the indirect method, the total capital costs and total running costs of generators are approximately €180,040,180.08 and €4,305,510.6, respectively, while the average cost per unused kWh of electricity stands at €3.37/kWh. The study concludes that power interruptions have a significant negative effect on industries in Cameroon.

Keywords: Electricity; Interruptions; Costs (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:62:y:2013:i:c:p:582-592

DOI: 10.1016/j.enpol.2013.07.014

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