3 minute read

References

For this chapter, the model was not run in the typical constrained optimization mode but in a simulation mode with “what-if” policy scenarios representing uncertainty. 18. Most solar and wind projects also operate under such contracts, and power system operators sometimes have to make trade-offs. 19. South Africa does not have significant domestic hydropower resources. 20. Economic dispatch in a competitive electricity market, simulated in the model, is based on so-called merit order where the system operator calls power producers every hour to provide their capacity to the grid in the order of their short-run marginal (mainly operational) cost. The most expensive producer that meets the full demand in this hour sets the offtake electricity price, hence revenue, for all producing plants. 21. The scenarios simulated here demonstrate some residual bias in favor of variable renewable energy, since they do not include system costs of managing variability of wind and solar power, besides fast-response reserve margin. 22. Assuming a 4 percent discount rate. 23. Staff calculations based on Statistics Canada installed hydro generation capacity data. 24. Installed Plants,Annual Generating Capacity byType of Electricity Generation, database, Statistics Canada, Ottawa, table 25-10-0022-01, https://www150 .statcan.gc.ca/t1/tbl1/en/tv.action?pid=2510002201. 25. A 3.5 percent discount rate was applied during the first 30 years in the net present value calculation and a 3.0 percent discount rate thereafter up to 50 years. 26. “Social” asset values are based on resource rents calculated without taking subsidies into consideration (Statistics Netherlands 2011). 27. As with hydroelectric assets, the UK study assumed a 50-year asset life for wind electricity assets (as opposed to the assumed infinite lifetime here) and discount rates of 3–3.5 percent.

Bernard, J. T., G. E. Bridges, and A. Scott. 1982. “An Evaluation of Potential

Canadian Hydroelectric Rents.” Resources Paper No. 78, University of British

Columbia, Vancouver, Canada. Chattopadhyay, D., P. Chitkara, I. D. Curiel, and G. Draugelis. 2020. “Cross-Border

Interconnectors in South Asia: Market-Oriented Dispatch and Planning.” IEEE

Access 8: 120361–374. https://ieeexplore.ieee.org/abstract/document/9127966. EC (European Commission), IMF (International Monetary Fund), OECD (Organisation for Economic Co-operation and Development), UN (United

Nations), and World Bank. 2009. System of National Accounts 2008. New York:

UN. http://documents.worldbank.org/curated/en/417501468164641001/System -of-national-accounts-2008. Eurostat and OECD (Organisation for Economic Co-operation and Development). 2015. Eurostat-OECD Compilation Guide on Land Estimation. Luxembourg:

Publications Office of the European Union. https://ec.europa.eu/eurostat /documents/3859598/6893405/KS-GQ-14-012-EN-N.pdf.

Foster, V., and A. Rana. 2020. Rethinking Power Sector Reform in the Developing

World. Sustainable Infrastructure Series. Washington, DC: World Bank. https:// openknowledge.worldbank.org/handle/10986/32335. Gillen, D., and J.-F. Wen. 2000. “Taxing Hydroelectricity in Ontario.” Canadian

Public Policy 26 (1): 35–49. Hreinsson, E. B. 2008a. “Renewable Energy Resources in Iceland: Environmental

Policy and Economic Value.” Nordic Conference on Production and Use of

Renewable Energy, Vaasa, Finland, July 9–11. Hreinsson, E. B. 2008b. “The Economic Rent in Hydro and Geothermal Resources in Iceland with Reference to International Energy Markets and Resource Cost

Structure.” 2008 IEEE Power and Energy Society General Meeting, “Conversion and Delivery of Electrical Energy in the 21st Century,” Working Group on

European Electricity Infrastructure. Paper 08GM0965. ONS (Office for National Statistics, UK). 2016. “UK Natural Capital: Monetary

Estimates, 2016.” Statistical Bulletin. https://www.ons.gov.uk/economy /environmentalaccounts/bulletins/uknaturalcapital/monetaryestimates2016. Rothman, M. 2000. “Measuring and Apportioning Rents from Hydroelectric Power

Developments.” World Bank Discussion Paper No. 419, World Bank, Washington,

DC. https://elibrary.worldbank.org/doi/abs/10.1596/0-8213-4798-5. Smith, R., A. Ilas, J. G. Inon, and G. Peszko. 2021. “Renewable Energy: Unaccounted

Wealth of Nations.” CWON 2021 background technical report, Washington,

DC, World Bank. Statistics Netherlands. 2011. “Environmental Accounts of the Netherlands 2010.”

Statistics Netherlands, The Hague. https://www.wavespartnership.org/sites /waves/files/images/Netherlands%20env%20accts%202010.pdf. UN (United Nations). 2019. System of Environmental-Economic Accounting for

Energy (SEEA-Energy). New York: UN. UN (United Nations), EC (European Commission), FAO (Food and Agriculture

Organization), IMF (International Monetary Fund, OECD (Organisation for

Economic Co-operation and Development), and World Bank. 2014. System of

Environmental-Economic Accounting 2012—Central Framework. New York: UN. https://seea.un.org/sites/seea.un.org/files/seea_cf_final_en.pdf. Wandji, Y. D. F., and S. C. Bhattacharyya. 2018. “Evaluation of Economic Rent from

Hydroelectric Power Developments: Evidence from Cameroon.” Journal of

Energy and Development 42 (1/2): 239–70. https://ssrn.com/abstract=3122260. Young, R. A., and J. B. Loomis. 2014. Determining the Economic Value of Water:

Concepts and Methods. New York: Routledge. Zuker, R. C., and G. P. Jenkins. 1984. “Blue Gold: Hydro-Electric Rent in Canada.”

Development Discussion Papers 1984-01, JDI Executive Programs.

This article is from: