Improving power system efficiency in developing countries through performance contracting

Abstract

In the United States, some large industrial and commercial energy users have sucessfully used energy performance contractors to effect energy savings in exchange for a share of the savings. In some developing countries, governments have considered various forms of government/utility performance contract, whereby the governments give the utilities more flexibility and autonomy in exchange for better performance. Why not merge the two concepts? A utility could engage a performance contractor to improve operations in exchange for a share of the savings - thereby allowing the utility to perform its performance contract with the government. The government would give the utility more autonomy in exchange for better performance.Economic Theory&Research,Town Water Supply and Sanitation,Energy Demand,Educational Sciences,Energy and Environment