The role of unmet demand in the dynamics of energy supply forms: The case of electricity market structures in sub-Saharan Africa

Alexis Vessat ()
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Alexis Vessat: UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique

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Abstract: The energy sector in sub-Saharan Africa is in a state of flux. Based on an approach borrowed from industrial economics, using historical examples that point to three successive transformations of electricity market structure, our analysis differs from previous studies by looking at demand as a consequence of supply. Our results show, an extremely fragmented demand for energy in sub-Saharan African countries, within which a very dynamic unmet demand drives change in how supply is offered. New forms of energy provisioning introduced on the electricity market put into question the initial ongrid network model. The appearance of decentralized electricity production shows that there is a potential for going beyond current limitations and moving away from a supply structure focused on the maintenance and improvement of on-grid networks without consideration of the needs of rural populations on one hand, and on the other hand, the establishment of expensive mini-grids that provide inferior energy services to rural populations. New territorial linkages focus on mechanisms seen in energy demand.

Keywords: electricity market reform; sub-Saharan Africa; decentralized mini- and off-grid production systems; demand fragmentation; supply dynamics and changes; rural electricity demand; access to electricity; Centralized electricity production (search for similar items in EconPapers)
Date: 2017-11-28
New Economics Papers: this item is included in nep-afr and nep-ene
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Published in French Association for Energy Economist (FAEE) 10th Winter Student Workshop, FAEE & Ecole Supérieure de Commerce de Paris (ESCP Europe Business School), Nov 2017, Paris, France

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